What is the New ‘Earned Income Tax Credit’? The ‘Earned Income Tax Credit’ was announced in Budget 2016 and applies for individuals earning self-employed trading or professional income and to business owners/managers who are not eligible for a PAYE tax credit on their salary income. It applies for the tax year 2016 onwards, subject to legislation, and provides for a maximum tax credit of €550 in respect of your earned income. The tax credit will be calculated at 20% of your e