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Measure Name
Date when measure came into force
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Generic Tax Name Personal income tax
Tax name in the national language Income tax
Tax name in English Income tax
Member State IE-Ireland
Tax in force since 1922/01/01
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other

Social security contribution Employers
Employees
Other
 
Legal base

Taxes Consolidation Act, 1997 as amended by later Finance Acts.

 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




Comments
 
Beneficiary





Comments

 
Geographical Scope

Republic of Ireland.

 
Taxpayers
Domestic-source income of non-residents is Taxed
Not Taxed
Comments

Employment incomes of married couples are Taxed jointly
Taxed separately
Comments

Married couples can elect to be taxed under one of the following options:

  • Joint Assessment 
  • Separate Assessment
  • Separate Treatment (Assessed as Single Individuals)


Comments

All persons (whether individuals, legal persons, members of partnerships, bodies corporate or non- corporate bodies) resident in Ireland unless they are non-domiciled and persons not resident in Ireland but deriving income from Irish sources. In the case of a body corporate, income that is chargeable to corporation tax is not chargeable to income tax.

 
Tax object and basis of assessment
As general rule, taxable income under personal income tax includes























Comments

Income considered Domestic income
Worldwide income (subject to double-tax relief)
Comments

Income considered: Domestic income and worldwide income (subject to double -tax relief)


Benefits in kind
The following benefits in kind are usually (partially or fully) taxable












Comments


Comments

Income is divided into four categories:

Schedule C: Interest etc., payable out of any public revenue.

Schedule D: Profits or income from property, trades, professions or vocations and all other annual profits or gains not charged under any other schedule and not specially exempted from tax.

Schedule E: Income from employment, including pensions;

Schedule F: Income from distributions.

 
Deductions, Allowances, Credits, Exemptions
Deduction for professional expenses.
The deduction is:





Comments

Deductions from the tax base
The following items are usually (partially or fully) deductible

















Comments

Allowances
The basic yearly allowance for an individual amounts to:
The basic yearly allowance for a couple amounts to:
Additional allowance for 1st child
Additional allowance for 2nd child
Additional allowance for 3rd child
Additional allowance for additional child
Additional allowance for old age dependents
Comments

Ireland moved from income tax allowances to a credit based system since 2001


Credits
The basic yearly credit for an individual amounts to: 1,650.00  EUR/National currency  or  %  of tax base
The basic yearly credit for a couple amounts to: 3,300.00  EUR/National currency  or  %  of tax base
Additional credit for 1st child
Additional credit for 2nd child
Additional credit for 3rd child
Additional credit for additional child
Additional credit for old age dependents
There are tax credits for:

















Comments

A single employed income earner is entitled to the basic personal tax credit of €1,650 and the employee (PAYE) tax credit of €1,650.   A single self-employed income earner is only entitled to the basic personal tax credit of 1,650. 

A married employed couple are entitled to a married tax credit of €3,300 (which is transferable between spouses) and an employed tax credit each if both are working which are not transferable between spouses. a married self-employed couple are only entitled to the married tax credit of €3,300. 

With effect from 1 January 2011 civil partners in a registered civil partnership are also entitled to the personal credit of €3,300 (which is transferable between the civil partners).

There are also certain personal reliefs in the form of non-refundable tax credits e.g. the single and married basic personal tax credit, home carer, the incapacitated child tax credit and the single person child carer tax credit.

A special employee tax credit is, in general, granted to taxpayers chargeable to tax under the PAYE (pay-as-you-earn) system.

Widowed persons, blind persons, home-carers and persons aged 65 years or over are entitled to additional credits.


Losses
Losses can be
Carried-forward for Indefinite
 Years
Carried-back for Indefinite
 Years
Transferred to spouse or partner
Comments

Losses can be carried forward until the loss is exhausted.

In the year in which a loss is incured in a trade or profession, that loss can be offset against the other income of the individual. Trade and professional losses can also be transferred to spouse in the year the loss occurs and when the married couple has selected to be jointly assessed.  

With effect from 1 January 2011 Case I and Case II losses can be transferred between civil partners in a registered civil partnership where the civil partners have opted to be jointly assessed.

Where an individual has ceased a trade or a profession, and there is a loss incurred in the final year of business, then that loss can be carried back against the profits of previous three years.


Exemptions
The following income is exempted from income tax























Comments


Comments

Deductions:

  • In the case of income from trades and professions: all expenses wholly and exclusively incurred for the purpose of the trade or profession, capital allowances on the depreciation of certain assets, losses, etc. are allowable.
  • Farmers are, subject to conditions, entitled to a deduction in respect of increases in stock values.
  • In the case of employed persons: only expenses wholly, necessarily and exclusively incurred in the performance of the duties of the employment are allowable.
  • Subject to conditions, relief may be granted to individuals in respect of medical insurance premiums, permanent health insurance premiums, retirement annuity premiums, superannuation contributions, health expenses, the cost of employing a person to care for an incapacitated individual and interest paid on certain mortgage loans and other loans.
  • Relief from tax may be granted in certain circumstances in respect of expenditure incurred on certain other items.

 

Age Related Exemptions:

Individuals are exempt from income tax if their gross income, before deductions, does not exceed the following limits (from 1 January 2011):

  • Single/Widowed: 65 years and over €18,000
  • Married:65 years and over €36,000 

Where incomes rise slightly above the exemption limit, the income above the limit is taxed under the system of marginal relief taxation at a rate of 40%. This applies until the level of income is such that it would be more favourable to be taxed under the normal system of credits and bands.

 

Further Exemptions:

  • Certain pensions and allowances (e.g. wound and disability pensions, military service pensions, certain social welfare payments and certain foreign pensions).
  • Lottery winnings.
  • Certain earnings of writers, composers and artists subject to a cap.
  • Subject to limitations, income derived from certain leasing of farmland.
  • Capital received from life assurance policies.
  • Payments to thalidomide children and income from the investment of such payments.
  • Bonus or interest payable under instalment savings schemes and interest on savings certificates. Income from scholarships.
  • Premiums payable on certain government and other securities.
  • Statutory redundancy payments.
  • Shares issued under approved profit-sharing schemes.
  • Investment income from compensation payments in respect of personal injury where the individual is permanently and totally incapacitated.
  • Income and investment income of and from certain trusts established for the benefit of permanently incapacitated individuals.
  • Compensation payments to persons who contract Hepatitis C and HIV because of the use of Human Immunoglobulin, Anti D or other blood products.
  • Payments made to Persons by the trustees of the Haemophilia HIV Trust.
  • Profits from the occupation of woodlands in the State managed on a commercial basis.
  • Rent-a-room: income where a person rents out a room or rooms in his or her principal private residence, up to €12,000 for a full year.
  • Rent relief: tax relief, at the standard rate and subject to certain limits, is available to individuals for rent paid for private rented accommodation which is their sole or main residence. This relief is being phased out and is due to expire at the end of 2017. This is being phased out.
  • Child-minding scheme: income of up to €15,000 per year from child-minding where individuals mind up to three children, who are not their own, in the minder's own home.
 
Rate(s) Structure
The following personal income tax rates apply to aggregate annual income (allowances not included)
Bracket 1 From  0.00  EUR/Natcur
To  33,800.00  EUR/Natcur
Rate: 20.00 %
Bracket 2 From  33,801.00  EUR/Natcur
To   EUR/Natcur
Rate: 40.00 %
Comments

For single persons, the standard rate applies to the first €33,800 of taxable income and the higher rate on the balance. For widows or single parents the standard rate band is €37,800 while it is €42,800 for a one income married couple jointly assessed to tax. In the case of a two income married couple jointly assessed to tax, the standard rate band can extend to €67,600 depending on the income of the spouse with the lower earnings.


Regional taxes
Regional taxes are (rate in capital region) A lump-sum amount:
A percentage of income:
A tax surcharge:
Comments

Local/municipal taxes
Local taxes are (rate in capital city) A lump-sum amount:
A percentage of income:
A tax surcharge:
Comments

Special surcharges
There are special surcharges in the form of:
Surcharge 1 : Name:
A lump-sum amount:
A percentage of income:
A tax surcharge:
Comments

Separate taxation
Separate taxation applies to the following items: Employment income
Income from business or self-employed activities
Income from sport and entertainment activities
Benefits in kind (company car, meal cheques, etc)
Pension income
Owner-occupied immovable property
Dividends
Interests from government bonds
Interests from corporate bonds
Interests from special saving accounts
Interests from deposits
Royalties
Income from renting immovable property
Income from renting movable property
Capital gains on immovable property
Capital gains on movable property
Inheritance
Annuities from life insurance
Prizes and awards
Scholarships
Income from occasional activities
Revenues from donations and gifts
Revenues from lotteries and games activities
Comments

Withholding taxes
The tax is withheld when paid to residents on: Dividends: 20.00 %
Final Creditable
Interests from governments bonds:
Final Creditable
Interests from corporate bonds:
Final Creditable
Interests from special saving accounts:
Final Creditable
Interests from deposits: 41.00 %
Final Creditable
Comments


Comments

 

 
Tax due date

Schedule D: Not later than 31 October of each tax year.

Schedule E/P.A.Y.E.: Weekly, Fortnightly, or Monthly deductions at source from emoluments (wages, salaries, etc) within the scope of PAYE.

 
Tax collector
  • Income tax on salaries, wages and pensions is deducted under PAYE on a current year basis. On other personal income, income tax is also charged on a current year basis. The income tax year commences on January 1.
  • Weekly or monthly deduction at source from emoluments (wages, salaries, etc) within the scope of PAYE. Otherwise, direct collection from the individual with an advance payment of at least 90% of (estimated) liability for the year or 100% of the previous year's liability being payable in one instalment by 31 October in the tax year with the balance being paid by 31 October in the following tax year by way of a self-assessment system.
 
Special features

Married couples:

Married couples may opt to be assessed in any of the following ways:

a) Assessment of each spouse as a single person.

b) Assessment of the husband or the wife, in respect of the combined incomes of the husband and wife.

c) Separate assessment where the tax payable as at (b) is apportioned between the spouses.

 

Non-residents:

Non-resident persons are liable to income tax in respect of income arising or accruing in Ireland, including the profits of a business carried on in Ireland, and employments exercised in Ireland (subject to the provisions of any tax conventions in force between Ireland and the country in which the taxpayer resides).

The interest on certain securities, in the beneficial ownership of persons not resident or not ordinarily resident in the state, is exempt from income tax.

 

Special features:

1. Withholding tax on professional fees.

A withholding tax, at the standard rate (20% in the current tax year) is deducted at source from payments made by certain State and Semi-State bodies (government departments, local authorities, health boards, etc.) for professional services provided by accountants, architects, dentists, doctors, consultants, etc.

2. Deposit interest retention tax (D.I.R.T.).

A final liability tax, at 41%, is deducted at source from interest payable by certain deposit takers (banks, building societies, etc.) to resident account holders. Non-residents, charities, certain permanently incapacitated individuals and certain individuals over 65 years of age are not subject to the tax.

3. Relevant contracts tax.

A withholding tax, at a rate of 35%, is deducted at source from payments made by principal contractors to certain subcontractors in the construction, meat processing and forestry industries.

4. Dividend withholding tax.

A withholding tax at the standard rate of income tax (20% in the current tax year) is deducted at source from dividend payments made by Irish resident companies to Irish resident individuals and certain other shareholders.

 
Economic function







Comments
 
Environmental taxes



Comments
 
Tax revenue
ESA95 code d51aa

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 11,429.41 EUR 6.54
2011 10,680.49 EUR 6.14
2010 11,232.60 EUR 6.76
2009 11,808.01 EUR 6.97
2008 13,147.63 EUR 7.01
2007 13,563.49 EUR 6.88
2006 12,391.06 EUR 6.70
2005 11,469.70 EUR 6.75
2004 10,786.82 EUR 6.91
2003 9,226.47 EUR 6.33
2002 9,000.09 EUR 6.62
2001 9,215.35 EUR 7.56
2000 9,196.73 EUR 8.49

Comments