I propose to take Questions Nos. 821, 822, 823 and 830 together.
Section 472B of the Taxes Consolidation Act 1997 provides for the Seafarer Allowance in relation to voyages that begin or end outside the State where the seafarer is absent from the State for at least 161 days in a tax year.
The incentive is intended to support the commercial international shipping sector and applies in relation to international voyages (including voyages to the UK). The Seafarers' Allowance provides an allowance of €6,350 to individuals working in the shipping transport sector. This deduction cannot be set against other income of the individual or against the income of his or her spouse /civil partner. The relief is not standard rated and is therefore available at the taxpayer’s marginal rate of tax.
The duties must be wholly performed aboard sea-going ships on an international voyage. A sea-going ship is one that is registered in the relevant Register of a Member State and is used solely for the trade of carrying, by sea, passengers or cargo for reward. An international voyage is a voyage that begins or ends in a port outside the State.
It is an approved EU State Aid that is available under EU Community Guidelines on State Aid to Maritime Transport.
I am advised by Revenue, that the estimated cost and number of claimants for the allowance for seafarers, for the years 2004-2024, are included in the ‘Cost of Tax Expenditures’ publication which is available on the Revenue website at www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/costs-expenditures.aspx. A taxpayer unit refers to individuals except in the case of couples who are jointly assessed, in which case the couple are counted as one taxpayer unit.
The below table sets out the figures in respect of the 2020 – 2024 years of assessment, the latest year for which fully analysed data are available.
Revenue advise that figures for 2025 will become available in the coming months, once returns for that year have been fully processed and analysed.
|
Year
|
Exchequer Cost (€M)
|
Number of Claimants
|
|
2024
|
0.2
|
140
|
|
2023
|
0.2
|
130
|
|
2022
|
0.3
|
160
|
|
2021
|
0.4
|
180
|
|
2020
|
0.4
|
190
|
I am further informed by Revenue that the estimated Exchequer costs that would arise from the increases in the allowance, as set out by the Deputy, are provided in the below table.
|
Seafarers' Allowance
|
Cost €m
|
|
€6,350 to €10,000
|
0.1
|
|
€6,350 to €15,000
|
0.2
|
|
€6,350 to €20,000
|
0.3
|
These estimates do not take account of any changes in behaviour, and are based on 2024 data, the most recent year for which the underlying data is available for statistical analysis.
A review of the Marine taxation regime in Ireland was carried out in 2015 and is available on my Department's website: https://assets.gov.ie/static/documents/report-on-the-review-of-marine-tax-indecon-for-department-of-finance.pdf.
In regards any potential changes and the broadening of criteria, as the Deputy will appreciate, decisions regarding taxation measures are made in the context of the annual Budget and Finance Bill processes, at the appropriate time, and having regard to the sound management of the public finances. It is a longstanding practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.
