Revenue has recently updated its guidance on the Foreign Earnings Deduction (FED) and the Special Assignee Relief Programme (SARP) to reflect changes introduced in the Finance Act 2025. These updates will apply from 2026 and are particularly relevant for businesses with international employees, staff working abroad or wider global operations.

For many organisations, these reliefs play an important role in managing the cost of international assignments and supporting talent mobility. The latest changes mean that companies should now review their current structures and policies to ensure they remain compliant and continue to benefit from the available reliefs.

Key Updates to SARP

The Special Assignee Relief Programme has been extended for a further five years, now running until 31 December 2030. However, there are several important changes that will affect eligibility and planning.

From 1 January 2026, the minimum salary threshold for new entrants will increase to €125,000, up from €100,000. This change is likely to reduce the number of employees who qualify and may require businesses to reassess existing and future assignments to Ireland.

There is also increased flexibility around employer certification. This can now be completed between 90 and 180 days after the employee’s arrival. However, this comes with limitations. Where certification is delayed beyond 90 days, relief will be restricted to four years instead of five, and no relief will be available in the first year.

Employers should also be mindful of ongoing compliance requirements. The annual SARP return must be filed by 30 June following the end of each tax year.

Key Updates to FED

The Foreign Earnings Deduction has also been extended for a further five years and enhanced in several key areas.

From 2026, the maximum relief available under FED will increase to €50,000. This provides additional support for employees working abroad and may help offset the costs associated with overseas assignments.

The scope of the relief has also been expanded, with the Philippines and Turkey now included in the list of qualifying countries. This change may create new opportunities for businesses with operations in these regions.

Why These Changes Matter

These updates have practical implications for businesses managing international workforces.

The increase in the SARP salary threshold means fewer employees may qualify for relief. As a result, companies should review their current talent strategies and assess the financial impact of inbound assignments.

At the same time, the enhanced FED relief provides greater support for employees working overseas, which may influence how organisations structure outbound roles.

There is also a growing compliance focus. Revenue continues to increase scrutiny in areas such as payroll, expenses and share-based remuneration, alongside enhanced reporting requirements. Ensuring that all claims are correctly applied and documented will be essential.

What Businesses Should Do Now

Organisations with international activity should take this opportunity to review their tax and mobility policies. This includes assessing eligibility for SARP, ensuring FED claims are maximised where appropriate, and confirming that all compliance obligations are being met.

Taking a proactive approach will help avoid the loss of valuable reliefs and reduce exposure to potential Revenue queries.

Contact us:

If you would like support in understanding how the updated SARP and FED rules impact your business, Gallagher Keane is here to help. Our team can guide you through the changes and ensure your international tax position remains compliant and efficient.