Taxperts-

expert in tax so you don't have to be!

Income Tax - obligations


All Irish tax residents must pay Irish Income tax on all income, regardless of where that income comes from. There are also circumstances where non-residents are liable to Irish income tax.

Each taxpayer is also obliged to make an annual tax return, even if they have no tax liability. This return must be made by the 31st October following the end of the tax year.

 

Some taxpayers are exempt from this obligation. The primary exemption applies to taxpayers whose main source of income is from a wage, salary or pension and who pay their tax through the PAYE system.

All others, - self employed, those whose incomes come from rents, dividends etc must make the annual return and pay tax on the income they receive, after deduction of bona fide expenses relating to that income.

 

Claims for credits & allowances can be made for up to 4 years retrospectively.After 4 years this entitlement lapses.


Income Tax   -  Rates (2009)


There are two income tax rates - the standard rate of 20% and the higher rate of 41%. The amounts payable at wach rate are determined by marital and age circumtances.

Exemption Limits (Over 65) - Single/Widowed €20,000, Married €40,000


Income Tax Credits


Tax Credits are effectively a discount off your tax bill. There are a wide variety of credits available and are related to personal circumstances. Full details are available on request.                                                   


Income Tax Allowances

Tax Allowances reduce your taxable income, before tax rates are applied.

The principal tax allowances are:

1. Pension Contributions – subject to % of income, dependant upon age, and overall cap.

2. For 2009 , relief is available for expenditure on approved nursing home care.

3. Guide Dogs for blind persons – max €825

4. Employment of carer for incapacitated person – max €50000.

5. BESinvestment - subject to limits. 

 

Income Levy

 

In 2009 a new income levy was introduced, on a tiered basis. Full details available on request.

 

 

Disclaimer
The information on this website is for general guidance only.It is essential to take professional advice on specific issues about their impact on any individual or entity.No liability can be accepted for any errors or omissions or for any person acting or refraining from acting on the information provided on this site.