Tax relief for tuition fees in respect of third level education

Name of the instrument - Local language: Tax relief for tuition fees in respect of third level education
Name of the instrument - English translation: Tax relief for tuition fees in respect of third level education
Scheme ID: 111
Country: Ireland
Reporting year: 2020
Type of instrument: Tax incentive for individuals
Sub-type of instrument: Tax support for families and their costs for education
Type of entry: Single instrument

Short description: Students, or someone paying fees on a student's behalf, can claim tax relief of 20% on qualifying fees (including the student contribution) that have to be paid for third level education courses. The qualifying fees must be paid for an approved course at an approved college. Some charges and levies do not qualify for relief (administration fees, student centre levy, sports centre charge, Union of Students in Ireland levy). Only the person paying the fees can claim the reduction. The maximum amount that can be claimed in a year is EUR 7 000 per course, per person, per academic year, with each claim subject to a single disregard amount of EUR 3 000 or EUR 1 500 each tax year. The first EUR 3 000 is disregarded for a full-time student orIn 2018, Skillnet Ireland repositioned, becoming a rebranded agency (Skillnet Ireland)for a part-time student. Individuals above 65 years with an income below EUR 18 000 are not liable to income tax. The tax incentive can be used once in each calendar year.

Level of operation

National

Name of a part of the country

Not applicable

Name of the region (for regional instruments)

Not applicable

Name of the sector (for sectoral instruments)

Not applicable

Relevance

Key instrument

Legal basis

Section 473A, Taxes Consolidation Act, 1997 (NB: Finance Act of 1995 provided for tax relief for tuition fees. All legislation relating to tuition fees that had been passed prior to 1997 was incorporated in the Taxes Consolidation Act 1997. Also, changes made to tuition tax relief after 1997 were retrospectively incorporated into the Act)

Objective(s) and target(s)

To provide assistance to students who are required to pay third-level tuition fees.

Year of implementation

1995

Operation/management

Revenue Commissioners administer and manage the system (in conjunction with the Department of Education and Skills).

Eligible group(s)

Students undertaking an undergraduate course, postgraduate course, IT or foreign language course from an approved list of courses and providers published on the Revenue website. Tax relief can be claimed as long as the payer has paid the fees on their own behalf or on behalf of another person. Only the person who has actually paid the fees can receive the tax relief.

Group(s) with preferential treatment

No preferential treatment

Education and training eligible

Certain full-time and part-time undergraduate courses of at least 2 years duration, post-graduate courses of at least 1 but not more than 4 years duration; certain training courses in information technology and foreign languages of less than 2 years duration. There is an approved list of courses and providers.

Source of financing and collection mechanism

State (loss of tax revenue)Individual

Financing formula and allocation mechanisms

Tax relief reduces taxable income, at the standard rate of income tax (20%) subject to the maximum level of tuition fees allowable: - for undergraduate courses: fees of maximum EUR 7 000 per course - for ICT and languages: fees ranging from EUR 315 to EUR 1 270 per course

Eligible costs

Tuition fees.

Volumes of funding

Amount:2016: EUR 13 900 000 2017: EUR 15 200 000 2018: EUR 17 200 000

Beneficiaries/take up

2016: 26 000 2017: 29 000 2018: 33 200

Organisation responsible for monitoring/evaluation

Irish Tax and Customs

Most relevant webpage - in English