KPMG Business Traveller Foreign Earnings Deduction (FED) module

KPMG Business Traveller
Foreign Earnings Deduction (FED) module
Automated tracking and reporting of travel for FED
Tax Relief for Business Travellers
Claiming Tax Relief
Foreign Earnings Deduction (FED) provides income tax
relief to employees of Irish companies who spend time
working abroad on business trips in certain countries. The
relief was introduced in 2012 to support efforts by Irish
companies to expand into emerging markets, originally
the BRICS countries. The list of qualifying countries was
expanded last year and from 1 January 2015 will extend
further to cover 28 countries in total including: Singapore,
Japan, the United Arab Emirates and Malaysia
(see table overleaf).
Where the conditions are met, an employee can get an
annual income tax deduction of up to €35,000. Employees
can claim the relief through their tax return and such
claims must be supported by a statement from their
employer indicating the dates of departure and return
to Ireland and the location at which work duties were
performed while abroad.
From 1 January 2015, the qualifying conditions are less
onerous so that more business travellers should be able to
avail of the relief. These include:
n
The minimum number of days spent working
overseas in qualifying countries will reduce to 40 days;
n
The consecutive number of days for a relevant trip will
reduce to 3 days; and
n
Days of travel, between Ireland and the qualifying
country, can be included as qualifying days.
KPMG Link Mobile App & FED
The KPMG Link Mobile App provides automated location
tracking by using state of the art GPS functionality. The
KPMG software provides employers and employees
with a tailored FED report to capture travel between
Ireland and FED countries only so that Irish companies
can produce a report of employees who may be eligible
to claim relief under FED. In addition, a report can be
produced by employers as an automated and validated
statement of travel to assist employees with their FED
claims for their tax returns. It reduces the compliance
risk and operational HR time spent validating travel to and
from these locations.
HR Dashboard
Key Benefits for Employers:
n
Tailored report for FED purposes
n
Real-time reporting of employee
whereabouts reduces compliance
risk in the host locations
n Better employee engagement
n
Reduced risk for HR providing
FED statements
n
Can be integrated into your
overall business traveller
programme
KPMG Link Mobile App
Key Benefits for Business
Travellers:
n
Supports claim for tax relief
n
Enables quicker refund of tax
n
User friendly mobile app
n
Automated GPS tracking means
no manual intervention required
Qualifying Countries - FED
2012
Additional qualifying countries Additional qualifying countries in 2015
in 2013 & 2014
Brazil, China, India,
Russia and South
Africa.
Algeria, Democratic Republic of Bahrain, Chile, Indonesia, Japan,
Congo, Egypt, Ghana, Kenya, Kuwait, Malaysia, Mexico, Oman, Qatar,
Nigeria, Senegal and Tanzania. Saudi Arabia, Singapore, South Korea,
Thailand, United Arab Emirates
and Vietnam.
Contacts
Michael Rooney
Head of Global Mobility Services
Gearoidín Burke
Director
Laura McTiernan
Associate Director
t: +353 1 700 4061
e: michael.rooney@kpmg.ie
t: +353 1 410 1497
e: gearoidin.burke@kpmg.ie
t: +353 1 700 4113
e: laura.mctiernan@kpmg.ie
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Produced by: KPMG’s Creative Services. Publication Date: October 2014. (414)