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Deduction (Mature Workers) Rules 2014 (Legal Notice 180 of 2014)

Applicable date

Applicable with effect from Year of Assessment 2015 with respect to employees engaged on or

after 1 January 2014.

Eligible Persons

Employers (self employed and companies) who provide employment to an individual whose

age is between 45 to 65 years and whose name appears on the unemployment register and has

been on this register for at least 6 months.

Deduction with respect to employment of mature works

The deduction available to eligible employers will be equivalent to Euro 5,800 per annum

against the chargeable income during the first two years of providing employment to the

mature worker.

Mechanism of the Deduction

  •  The deduction is allowable only if the mature worker remains in employment for two

consecutive years;

  •  The allowable deduction should be calculated pro rata in case of employment of mature

workers which happened during the year;

  •  In the case where the allowable deduction is not fully set off against taxable income during

the particular year, any unabsorbed deduction may be carried forward to be set off against

the taxable income of subsequent years;

  •  The deduction will be only allowed where the employer is not benefitting from any other

deduction or tax credit with respect to the said employment

Deduction with respect to training of the mature worker

The deduction available to eligible employers will be equivalent to 50% (up to a maximum of

Euro 400) of the expense incurred in the training of the mature worker will be allowed against

the chargeable income of the employer.