Dáil Éireann Debate, Thursday - 7 November 2024
60. Deputy Réada Cronin asked the Minister for Finance if he will exempt payments made to farmers under the Climate Action Performance Payment from the Universal Social Charge and PRSI; and if he will make a statement on the matter. [45594/24]
Amharc ar fhreagraThe Climate Action Performance Payment Scheme is part of the Ash Dieback Action Plan for forest owners impacted by ash dieback disease, published by the Department of Agriculture, Food and the Marine (DAFM).
Payments under the scheme, totalling €5,000 per hectare, may be paid by DAFM in three instalments to grant aided ash forest owners (including forest owners who are farmers) who clear ash from their forests and replant with an alternative species through one of the Ash Dieback Reconstitution Schemes.
Section 232(2) of the Taxes Consolidation Act 1997 (TCA) provides that profits or gains from the occupation of woodlands in the State:
• which are managed on a commercial basis, and
• with a view to the realisation of profits,
are exempt from income tax and corporation tax.
I am advised by Revenue that payments received under the scheme should be included as income in the calculation of a person’s profit or loss. Any profit or gain arising will be exempt from income tax or corporation tax.
When completing their Income Tax Return, an individual must claim the exemption by completing the ‘Exempt Income’ section of the return, including details of any profit or gain under ‘Profit or gains from Woodlands’. The exemption does not apply to the Universal Social Charge and Pay Related Social Insurance; I have no plans to change to how section 232 of the TCA works in this regard.
