S.L. 123.81 Art. 3Tax credit.

(1)(a) Any person to whom rule 2 applies, including a married woman who, or whose spouse has, opted for a separate computation for the purposes of article 50 of the Income Tax Act, hereinafter referred to as "the

Act", and who is chargeable to tax at the rates specified in article 56(1)(b) of the Act, shall benefit from a tax credit of two thousand euro (€2000) which shall be set-off against the tax in respect of gains or profits from the said employment: Provided that in the case of applicability under rule 2(b) or 2(c), a woman shall benefit from a tax credit as aforesaid in respect of every child as mentioned in rule 2.

(b) The tax credit as aforesaid may only be set-off against the tax on employment income referred to in rule 2 but may be availed of over a period of two consecutive years of assessment commencing from the year of assessment during which the return to employment occurs. It shall not be available as a set-off against the person’s other sources of income, if any, or against her or his spouse’s income: Provided that in the case of a woman who qualifies under rule 2(b) or 2(c), the tax credit may be availed of over a number of consecutive years not exceeding the number of children plus one but shall in any case not exceed €2000 in any one year: Provided further that where a woman is availing herself of the tax credit as aforesaid after qualifying under rule 2(a) or 2(b) and becomes entitled to a further tax credit under rule 2(c), the new tax credit shall commence in the final year in which the tax credit under rule 2(a) or 2(b) is available but shall not exceed €2000 in any one year: Provided also that in the case of a woman who qualifies under rule 2(c) in the year 2007, the tax credit shall commence from the year of assessment 2009.

(c) The income in respect of which a tax credit is granted under these rules shall be deemed to constitute the first part of that person’s total income for the relative year of assessment.

(2) (a) Any person to whom rule 2 applies and who is chargeable to tax jointly with his or her spouse at the rates specified in article 56(1)(a) of the Act, shall benefit from a tax credit of two thousand euro (€2,000) which shall be set-off against the tax on that part of the total income of the married couple representing her employment income: Provided that in the case of applicability under rule 2(b) or 2(c), a woman shall benefit from a tax credit as aforesaid in respect of every child as mentioned in rule 2.

(b) The tax credit as aforesaid may be availed of over a period of two consecutive years of assessment commencing from the year of assessment during which the return to employment occurs: Provided that in the case of a woman who qualifies under rule 2(b) or 2(c), the tax credit may be availed of over a number of consecutive years not exceeding the number of children plus one but shall in any case not exceed €2,000 in any one year: Provided further that where a woman is availing herself of the tax credit as aforesaid after qualifying under rule 2(a) or 2(b) and becomes entitled to a further tax credit under rule 2(c), the new tax credit shall commence in the final year in which the tax credit under rule 2(a) or 2(b) is available but shall not exceed €2,000 in any one year: Provided also that in the case of a woman who qualifies under rule 2(c) in the year 2007, the tax credit shall commence from the year of assessment 2009.

(c) The income in respect of which a tax credit is granted under these rules shall be deemed to constitute the last part of that married couple’s total income for the relative year of assessment.