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TAXATION
The taxation guidelines and details below
are currently incorrect and are due to be updated shortly
following the forthcoming December 2010 Budget. The details
will be different and may also change in the future, if so,
you are advised to seek advice from your Accountant for up
to date details, rates, and advice or contact us via our "contact
details".
Irish
Taxation - Details & Rates - 2010
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PRINCIPAL
TAX CREDITS
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Personal Tax Credit
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Single Person
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1,830
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Married Couple/Single Parent
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3,660
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Widow(er) with dependent child (1)
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4,000
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Additional Widow(er)
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600
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Employee (PAYE) (2)
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1,830
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(2) Not available to proprietory Directors and the
self employed
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Incapacitated Child
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3,660
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(1) Additional credits due for Widow(er) with dependent
children for first 5 years after bereavement
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Age Credit
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Single/Widowed Person
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325
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Married
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650
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Blind Persons Credit
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Married (both spouses blind)
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3,660
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Single or married (one spouse blind)
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1,830
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Home Loans Standard Rate
(Relief granted at source from 1 January 2002)
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First-Time Buyer (for 7
yrs)
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Single Max
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2,000
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Married Max
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4,000
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Widow(er) Max
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4,000
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Non-First Time Buyer
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Single Max
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600
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Married Max
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1,200
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Widow(er) Max
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1,200
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Rent Relief
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Under 55 Single
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400
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Under 55 - Married/Widow(er)
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800
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Over 55 Single
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800
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Over 55 - Married/Widow(er)
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1,600
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One income Family Credit
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Spouse caring for children, the aged or handicapped
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900
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Dependent Relative
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80
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INCOME
TAX RATES
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Single & Widowed Persons:
No Dependent Children
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20% on first
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35,400
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41% on balance
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Single & Widowed Persons:
Dependent Children
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20% on first
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39,400
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41% on balance
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Married Couples: One Income
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20% on first
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44,400
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41% on balance
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Married Couples: Two Incomes*
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20%
on first
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70,800
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41%
on balance
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Interest
on Tax Paid Late 1% per month
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Interest
on Tax Repaid 0.5% per month
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*
Excess over Euro 44,400 non transferable between spouses
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Tax Allowance
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Cost of employing carer for incapacitated
individual allowed at marginal rate of tax
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50,000
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BENEFIT
IN KIND
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Cars - The maximum allowable capital
cost for new and secon hand private cars, purchased
on or after 1 January 2007, is €24,000.
Cash equivalent 30% of the
original market value of the car. BIK is calculated
on 30% of open market car value with reduction for
amounts borne by the employee in respect of the car
costs.
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Reduced where employee pays costs:
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Reductions
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Fuel
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4.5%
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Insurance
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3.0%
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Repairs & Service
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3.0%
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Tax
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1.0%
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The percentage which is now applied to the open market
value (OMV) of the car will be determined based only
on business mileage, as follows:-
Business Mileage ------------% of OMV
15,000 or less -----------------30%
15,001-20,000 ----------------24%
20,001-25,000 ----------------18%
25,001-30,000 ----------------12%
Over 30,000 --------------------6%
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Private use of Employer Van:-
The charge to BIK for the private use of an employer's
van can be calculated at 5% of the original market
value of the van.
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Preferential Loans
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Specified rate for home loans
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5.3%
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Specified rate for other loans
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13%
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Small Benefits in Kind
An Employer can provide an employee with a small
benefit to a value not exceeding €250 without
applying PAYE and PRSI to that benefit.
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PRSI
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Contribution
Rate
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Earnings
Ceiling
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Social
Insurance
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Employer Class A1
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Employer
Contribution (including training fund levy)
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10.75% (1)
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No Ceiling
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Employee Class A1
(Earning
over €356 per week or equivalent)
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PRSI
(First 127 of weekly earnings exempt)
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4%
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50,700
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Health
Contribution
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2% (2)
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No Ceiling
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Total
for Employee
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6%
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Self Employed Contributions
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PRSI
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3%(3)
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No Ceiling
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Health
Contribution
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2% (2)
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No Ceiling
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Total
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5%
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(1) 8.5% where
weekly earnings are less than 356
(2) Does not apply where aggregate earnings are less
than 500 p.w.
(3) 3% subject to minimum payment of 254
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CORPORATION TAX
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Standard
Rate on Trading Income*
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12.5%
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Investment/Rental
Income
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25%
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Manufacturing
Rate
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10%
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*Reduced
rate of 12.5% where total trading income does not
exceed Euro 253,948
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The
payment date for preliminary tax, which must be at
least 90% of the final liability, is brought forward
to one month before the end of the accounting period
over a transitional period of five years. Preliminary
tax is based on the current year's tax liability.
However, small companies can base their preliminary
tax payment on the previous year's liability.
A
small company is a company with a Corporation Tax
liability of less than €200,000 in the preceeding
year. For accounting periods ending on or after 1
January 2008 and before 1 January 2008 preliminary
tax (90%) is payable in two installments. The first
installment is due one month before the end of the
accounting period as follows:-
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Accounting
Periods Ending on or after
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Percentage
current liability
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1
January 2006
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54%
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1
January 2007
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72%
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1
January 2008 and after
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90%
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Accounting
Periods Ending on or after
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%
of previous year's liability (Small Companies)
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1
January 2006
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60%
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1 January 2007
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80%
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| 1 January
2008 and after |
100%
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The
second payment of preliminary tax to bring the total
preliminary tax payment up to 90% of the current year's
liability is due within 5 months and 28 days after
the end of the accounting period.
The
final balance of tax (10%) is payable nine months
after the end of the accounting period.
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Capital Gains Tax
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Per Individual
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Annual
exemption
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1,270
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Rate
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20%
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Retirement
Relief exemption limit
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750,000
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The due date for payments of Capital Gains Tax for
disposals of 1 January and 30 September is 31 October
in the same tax year. Where the disposal is between
1 October and 31 December the due date for payment
is 31 January the following tax year.
Capital Allowances:-
Motor Vehicles and Plant & Machinery
Year 1 - 8
Writing down allowance = 12.5% p.a.
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VAT
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With effect from 1 January 2007
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VAT Registration Thresholds:
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Supply
of taxable goods in Ireland.
(90% of turnover must be from the sale goods for
this threshold to apply)
See note 1.
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70,000
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Provision
of taxable services in Ireland
See note 1.
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35,000
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Note
1.
These thresholds do not apply to traders established
outside Ireland who must register irrespective of
turnover.
Note 2.
A registration threshold of 41,000 also applies
to certain persons acquiring goods in Ireland from
other EU member states (other than new means of transport
or goods subject to a duty of excise).
Note 3.
A registration threshold of 35,000 applies in relation
to "Distance Selling" i.e. persons supplying
certain goods to non-taxable persons in Ireland
from other EU member states.
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VAT Rates:
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21%
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This
standard rate applies to all supplies not chargeable
at other rates.
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Examples
- Cars, Petrol / Diesel, Telephone services, soft
drinks and alcohol, computers and software, consultancy
services.
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13½%
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Examples
- Heating fuel, electricity, restaurant services,
newspapers, hotel and B&B lettings, property.
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0%
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Examples
- Exports, certain food and drink, oral human medicine,
books, childrens clothing and footwear.
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5.2%
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Examples
- Livestock, live greyhounds , hire of horses and
the "Flat Rate Addition" .
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VAT
Exempt Services
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Examples
- Financial, insurance, educational, training, medical,
optical, and dental and passenger transport services.
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Gift/Inheritance Tax
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| Capital Aquisitions Tax |
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Tax Rates
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Threshold
amount
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Nil
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Excess
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20%
for gifts and inheritances
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Thresholds
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Parents
to child/spouse
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521,208*
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Blood
relative
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52,121*
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Others
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26,060*
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*Threshold
amount for 2008 increased in line with inflation.
Details now shown from January 2008.
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No gift/inheritance tax is payable
between spouses.
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Annual
gift exemption €3,000 per individual.
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Capital Duty
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with effect from 2nd December 2004 |
0.5% |
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Stamp Duty
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Main Rates
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Stocks & Shares
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1
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Land/Commercial Buildings/Goodwill
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Consideration
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0
10,000
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Exempt
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10,001-20,000
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1% |
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Consideration
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20,001-30,000
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2%
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30,001-40,000
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3%
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Consideration
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70,001-80,000
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5%
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101,001-120,000 |
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7% |
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Consideration
Over
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120,001-150,000
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8%
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Over €150,000 |
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9% |
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Residential Property
Consideration
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First
Time
Buyer
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Other Owner
Occupiers
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Investors New & Second hand Properties
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Up
to 122,000
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Exempt
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Exempt
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Exempt
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127,001190,500
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Exempt
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7%
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7%
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190,501254,000
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Exempt
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7%
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7%
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254,001317,500
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Exempt
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7%
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7%
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317,501381,000
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Exempt
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7%
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7%
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381,001997,000
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Exempt |
7%
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7%
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Balance
over 997,000
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Exempt |
9% |
9% |
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Payment Deadlines
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Pay
Balance of tax due for 2008
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31
October 2008
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Preliminary
Tax Payment for 2008
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31
October 2008
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File
Personal Tax Return for 2007
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31
October 2008
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CGT
Diaposals made between 1 January 2008 & 30 September
2008
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31
October 2008
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CGT
Disposals made between 1 October 2008 & 31 December
2008
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31
January 2009
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Final
Company Tax Payments
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5
months and 28 days after year end
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Company
Tax Returns
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9
months after year end
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PENSIONS
Pension Premium Contribution level deductible for tax purposes
are as follows:-
Age ---------------------------%
Up to 30 -------------------15%
30 to 39--------------------20%
40 to 49--------------------25%
50 to 54--------------------30%
55 to 59--------------------35%
60 and over----------------40%
There is a cap of €254,000 p.a. on the amount of earnings
on which tax relief may be obtained for contributions by individuals
to Retirement Annuity Contracts (RACs) and Personal Retirement
Savings Account (PRSA).
E & OE
* Pension Tax Relief outlined are those currently applying
01/01/2008
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