Seafarers Allowance
A tax allowance of €6,350 is available for seafarers who are at sea on a voyage to or from a foreign port for at least 161 days in the tax year. It also applies to seafarers on vessels which service drilling rigs.
General
The allowance was introduced 1998/99 and can be claimed as an alternative to the Foreign Earnings Deduction (FED) ****(Note 4) or the Trans-Border Workers Relief.
Conditions to Qualify
- The seafarer must be at sea for at least 161 days in the tax year. (169 days for years prior to 2001).
- The employment must be performed wholly on board a sea going ship *(note 1) in the course of an international voyage and
- The voyage must begin or end in a port **(note 2) outside the State and
- The seafarer must not be a Public Sector employee.
- The seafarer must not have claimed Foreign Earnings Deduction (FED) ***(note 3) and ****(note 4), or Split Year Treatment in respect of the income.
Relief Due
€6,350 - Available at the highest rate of tax.
The allowance cannot be set against any other income of the individual or against the income of his/her spouse.
Documentation Required
Written claim for relief to be submitted at the end of the tax year enclosing a letter from employer in support.
Note 1: A seagoing ship means a ship other than a fishing vessel that is registered in the shipping register of a European Member State and is used solely for the purposes of carrying passengers or cargo for reward.
Note 2: A rig or platform situated in any maritime area is regarded as a port - including rigs within the Irish continental shelf.
Note 3: The allowance is an alternative to FED. Some seafarers may have a choice. Both cannot be claimed. The choice only arises for seafarers on voyages to destinations outside the UK as the FED does not apply to periods of absence on direct visits to the UK.
Note 4: FED Relief terminated on 31/12/2003. Seafarers on direct voyages to the UK qualify for the allowance.