|Taxable Income Euro||Upto||Tax Rate||Balance|
|Married couple/civil partners, one income||42,800||20%||40%|
|Married couple/civil partners, two incomes||67,600||20%||40%|
|One parent family||37,800||20%||40%|
Example of standard rate cut-off point for a married couple or civil partners with two incomes
In 2016, the standard rate cut-off point for a married
couple or civil partners is 42,800. If both are
working, this amount is increased by the lower of the
24,800 in 2015 or
The amount of the income of the spouse or civil partner
with the smaller income
If one person is earning 48,000 and their spouse or civil partner is earning 25,000:
The standard rate cut off point for the couple is 42,800 plus 24,800. The increase in the standard rate band is not transferable between spouses or civil partners, so the first spouse or civil partner's tax bands would be calculated as 42,800 @ 20% = 8,560 and 5,200 @ 40% = 2,080. The second spouse or civil partner's tax bands would be calculated as 24,800 @ 20% = 4,960 and 200 @ 40% = 80.
Tax credits reduce the amount of tax that you have to pay. Tax credits are deducted after your tax has been calculated and so a tax credit has the same value to all taxpayers.
After your tax is calculated, as a percentage of your income, the tax credit is deducted from this to reduce the amount of tax that you have to pay. So a tax credit of 200, for example, will reduce your tax by that amount.
You may be entitled to various tax credits depending on your personal circumstances. You can get more information about the different types of tax credits and reliefs and the tax reliefs available for people with disabilities. If you are entitled to tax credits that are not listed on the Notice of determination of tax credits and standard rate cut-off point that you get from Revenue, you should contact Revenue to inform them.
Tax allowances reduce the amount of tax that you have to pay. The amount by which a tax allowance will reduce your tax depends on what your highest rate of tax is. This is because the allowance is subtracted from your income before it is taxed. In effect, it is taken off the top of your income which can then be taxed at either the standard rate or the higher rate, depending on your income level.
If, for example, you have a tax allowance of 200 and your highest rate of tax is 20%, then this means that the amount of your income that is taxed at this rate is reduced by 200 and so your tax is reduced by 40 (200 x 20%).
If you have the same tax allowance of 200 but the highest rate of tax that you pay is 40%, then the amount of your income that is taxed at 40% is reduced by 200 and so your tax reduction is 80 (200 x 40%).
This is known as tax allowance at the marginal rate.
When your employer is taking allowances into account in calculating your income tax, the way that this is done is by adjusting your standard rate cut-off point.
Allowances at the marginal rate include:
|Taxable Income Euro||Upto||Tax Rate||Balance|
|Married couple/civil partners, one income||41,800||20%||41%|
|Married couple/civil partners, two incomes||65,600||20%||41%|
|One parent family||36,800||20%||41%|
Note: The increase in the standard rate tax band is restricted to the lower of 23,800 in years 2013 and in 2014 or the amount of the income of the Spouse or Civil Partner with the lower income. The increase is not transferable between Spouses or Civil Partners.
Ireland (Irish) Income Tax Rate for Individual Tax Payers (Proposed)
In Ireland (Irish) lowest Individual Tax Rate is 20% and Highest Rate is 41%
Childcare Services Relief
Childcare Services Relief is a scheme of tax relief for income arising from the provision of certain childcare services. When the gross annual income from the provision of childcare services does not exceed 15,000 in the years 2013 and 2014, the income is exempt from tax. The childcare service must be provided in the carer's home, not the children's home and no more than three children may be cared for at any time.
Deposit Interest Retention Tax (DIRT)
From 1 January 2014, the DIRT rate will be 41% in respect of interest paid on all deposit accounts. For 2013, the rates were 33% for ordinary deposit accounts and 36% for long term deposit accounts.
The rate of exit tax that applies to life assurance policies and
investment funds will also be 41%.
Health/Medical Expenses Relief
You may claim tax relief on a Form MED 1, at the standard rate of tax (20%), (with the exception of nursing home expenses for which tax relief is still available at your highest rate of tax) for certain medical expenses incurred by you, on your own behalf or on behalf of another person. Most medical expenses, with some exceptions e.g. routine dental and ophthalmic care, qualify for relief.
You cannot claim relief for any expenditure which has been or will be reimbursed, e.g. by VHI, Laya Healthcare, Aviva Health, etc., or where a compensation payment is or will be made.
Corporate Tax Rates in Ireland (Irish)
The corporate income tax rate is 12.5% for active income of new operations. A corporate income tax rate of 25% applies to passive income and income from certain land dealing activities, mining, and petroleum activities. Capital gains are taxed at 33% with a participation exemption for gains on disposals of certain shareholdings of 5% or more of companies resident in EU or income tax treaty states.
Capital Gain Tax Rates in Ireland (Irish)
Capital Gains Tax (CGT) is chargeable on gains arising on the
disposal of assets, other than that part of a gain which arose
in the period prior to 6 April 1974. Any form of property (other
than Irish currency) including an interest in property (as, for
example, a lease) is an asset for CGT purposes.
Rate of Capital Gain Tax
The standard rate in respect of disposals is determined based on the date on which the disposal was made as follows:
from 6 December 2012 - 33%
from 7 December 2011 to 5 December 2012 - 30%
from 8 April 2009 to 6 December 2011 - 25%
from 15 October 2008 to 7 April 2009 - 22%
made on or before 14 October 2008 - 20%
The first 1,270 of an individuals annual chargeable gains, net of allowable losses, is exempt.
Ireland (Irish) Dates of filing Tax Returns / Reporting and Payment
Under the Self-Assessment system, you have a legal duty to make a tax return for a year by 31 October in the following year. While tax returns are issued to certain persons on Revenue's records who are considered likely to have a tax liability, it is your responsibility to complete and submit a tax return on time each year. Your tax return must be sent to the Collector-General's Division by 31 October after the end of the tax year i.e. your tax return for a given tax year must be sent in by 31 October of the following tax year. The earlier you send in your tax return, the sooner you will know your final liability for the tax year - this is important when it comes to paying the balance of tax due for a previous year and calculating your Preliminary Tax for the current year.