Taxation in the Republic of Ireland

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In Ireland there are income taxes, value added tax (VAT), and various other taxes. Employees pay pay-as-you-earn (PAYE) taxes based on their earnings, minus certain benefits. Income taxes are progressive, with little or no income tax paid by low and high-level recipients applied to upper-middle-income producers, the highest tax rate (including USC and PRSI) is 52%. But most of the central government's tax revenues also come from VAT, excise, and other taxes on consumption. The corporate tax rate is the lowest in the world at 12.5%.

Video Taxation in the Republic of Ireland

Tax on earnings

Income tax

Income tax is charged to all properties, profits, or profits. Since 2002, Ireland has operated a tax year that coincides with the calendar year (January 1 to December 31). The change coincides with the introduction of the euro in Ireland. For administrative purposes, taxable income is expressed in four schedules:

• Schedule C: public revenue dividend (i.e., coupon payments on government debt)
• Schedule D
  • Case I: Profits arising from any trade, or from mining, mining, employment, tolls, fairs, bridges, and trains
  • Case II: Profits emerging from any profession not listed in other schedules
  • Case III: Interest on money or debts, annuities, discounts, return on government debt is not covered in schedule C, interest on certain government debt, income from non-state securities not covered by schedule C, and income from goods outside declare
  • Case IV: Tax in respect of any annual gains or profits not covered by other cases or schedules. There are also special types of income that are determined by law to be taxed in case IV.
  • Case V: Tax on rent or receipt of all facilities
• Schedule E: Earnings from public offices, jobs, annuities, and pensions.
• Schedule F: Dividends from Irish companies.

Income tax rate

Since January 1, 2015, the tax rate is valid as follows:

There are 2 tax brackets, 20% (standard rate ) and an income balance of 40% (higher rate ). The brackets depend on the individual category.

The amount of EUR42,800 can be, for married couples, enhanced by a lower of: EUR24, 800 or income from the second pair. It brings the total maximum standard tariff bands for married couples to EUR67,600, twice from one-man bands. This increase is non-transferable between pairs.

Tax Credits

The taxpayer's tax liability is reduced by the amount of his tax credit, which replaced the tax-exempt allowance in 2001. Tax credits are non-refundable in case they exceed the amount of tax payable, but may continue within a year.

Various tax credits are available. Some are given automatically, while others must be claimed by taxpayers.

The main tax credit is a personal tax credit, which is currently EUR1,650 per year for one person and EUR3,300 per year for married couples. A widow in a year of mourning, or as long as she has children who depend on her, can claim a credit of EUR3,300 as well; higher credit available to widowed parents for five tax years after the mourning period.

The PAYE tax credit, which is also EUR1,650, is given to employees and others who pay tax under Pay as you get the system (more details below), to compensate them for the time value of the money effect; their taxes were deducted from their income during the year, while the entrepreneurial salary was nearing the end of the year. Credit must not exceed 20% of the recipient's income during the year and is non-transferable between spouses.

Housing rules

A person domiciled in Ireland is responsible for Irish income tax on his total income from all sources around the world. In this sense, a person who spends:

• 183 days or more in Ireland during the tax year, or
• aggregate 280 days in current and previous tax year

regarded as a resident. Attendance in Ireland no more than 30 days in a tax year is negligible for two-year test purposes. From 1 January 2009, a person is treated as a person present in Ireland for a day if there is anytime during the day; Prior to this, a person was only treated as a reward if he was present at midnight, a rule dubbed the "Cinderella clause". A person may also choose to stay in Ireland within a year of his arrival in Ireland, once he can meet the Revenue he intends to remain there for the subsequent tax year.

A person who lives in Ireland for three years in a row becomes usually a resident , and ceases to be a regular resident after he becomes a non-resident in Ireland for three years in a row.

A person is domiciled in Ireland if born in Ireland; someone who has "demonstrated the positive intent of a permanent residence in [a] new country" stops living in Ireland.

A non-Irish citizen but usually resident in Ireland is responsible for imposing taxes on all income derived from abroad and Ireland in full, except for income from trade, profession, office or employment, whose duties are wholly executed outside Ireland, and foreign income below EUR3,810 per year.

A person living in Ireland, and usually resident or domiciled in Ireland, but not both, is responsible for the tax on all Irish revenues in full, and on foreign income as it is sent to Ireland.

A non resident, ordinary resident, and not resident in Ireland, may be taxed on all income which is sourced from Ireland in full, and on any income sourced from abroad in respect of trade, profession or employment in Ireland.

Exception and marginal help limits

An individual 65 years of age or older during the tax year shall be exempt from income tax if his income is below EUR18,000 per year. Couples with earnings below EUR36,000 per year are also waived if couples are aged 65 or over or reaching 65 years of age; the exemption amount increased by EUR575 for each of the first two dependent couples and EUR830 for each subsequent child.

A person or couple who gets a little over the limit can claim what is known as marginal help . In this case, income above the exemption limit is charged to the tax at a flat rate of 40%. A person or spouse may elect to be taxed under marginal aid or the regular tax system, and which system will be more useful, including retroactive.

Reduction of tax obligations

Some expense items can be deducted from one's income for tax purposes, commonly referred to as tax relief. In some cases, taxes must be claimed retrospectively; in others it is processed as an increase in tax credit. Most are only allowed with a standard 20% tax rate.

Health insurance

A person who buys private health insurance is entitled to a 20% tax relief, which is usually given at the source - the person pays 80% of the cost, and the government pays the rest directly to the insurer. People over the age of 50 are eligible for further tax credits, which are usually paid by the insurer to compensate for the much higher costs incurred by an insurance company in respect of members over 50.

Medical expenses

Tax relief is available for medical expenses. With the exception of fees paid to approved nursing homes, assistance is only available retrospectively (ie by filling out the tax returns at the end of the year), and assistance is awarded at 20% since 2009. It can be claimed for someone's own expense, or the fees they pay on behalf of relatives, depending on, or, since 2007, anyone.

Medical costs are widely interpreted, and include:

• Doctors and consultant fees
• Prescription drugs (for maximum EUR144 per month, above which the Healthcare Executive will pay the entire balance)
• Hospital costs
• Ambulance Fee
• Non-routine dental care
• Nursing care costs
• Special foods for diabetics and celiacs
• Overnight accommodation for parents near the hospital where their child is being treated
• Travel expenses for dialysis patients or for transportation of children to and from hospitals for children with life-threatening or permanently disabled diseases

The relief may be claimed in the year in which the charge occurs or in the year in which the payment is made.

Permanent health insurance

A person can deduct from his income for tax purposes up to 10% of revenues spent on permanent health insurance. Therefore, assistance is given at 40% if the person is paying a higher tax rate. If payments are made by withholding payments, payments are treated as a benefit in the form (BIK) and thus subject to Universal Social Charge (USC) and PRSI.

Service charges

Tax relief is allowed on the cost of services paid to local councils for domestic waste disposal, as well as all payments for domestic water supplies or collection or disposal of domestic waste. Relief allowed in arrears - credits for payments made in 2007 were granted in 2008 - and given at 20%, up to a maximum of EUR80 (in which EUR400 or more is paid for service fees). It will stop from 2011.

Tuition

A 20% tax allowance is allowed in respect of school fees paid for the third-grade course, excluding the first EUR2,500 for full-time courses and EUR1,250 for part-time courses, from course fees). The maximum available help is EUR1,400 per year (20% of EUR7,000). The course must last at least two years, except for a graduate program that must be at least one year old. This course must also be approved by Revenue and submitted at the approved university by Revenue.

As well as medical expenses, since 2007, help can be claimed in respect of payments made by anyone, regardless of the relationship between the payer and the payee. Can not be claimed in connection with administration, registration, or examination fees.

Assistance is also permitted in the case of a fee of more than EUR315 for a foreign language course or information technology approved by FÃÆ', which is less than two years, resulting in a competency certificate award. Relief for 20% of the amount paid, up to a maximum of EUR254 (20% of EUR1,270) per course. Not available for courses in Irish or English.

Pension contribution

Contributions to pension schemes may be deducted from gross income before tax calculation; Therefore, tax relief is allowed on them at 40% if the contributor pays taxes at that rate. Contributions (including AVC) are subject to the current Universal Service Charge of 7%.

How taxes are paid

Taxpayers pay the "pay as you earn" system or "pay and archive" system.

Payment System as You Generate (PAYE)/span>

Employees, retirees, and directors generally have taxes withheld from their income by their employer when paid. Under this system, the tax is calculated by the employer on a daily basis of payment, deductible, and payable to the Revenue Entrepreneur receiving notification of tax credits and standard tariff rates applicable to employees of Revenue. The PAYE employee only needs to file a tax refund on form 12. if required to do so by the tax inspector, if he has other unannounced income, or if he wants to claim assistance that is not available on another form.

Self-assessment

The self-assessment system applies to people who work alone or who receive non-PAYE earnings. Under the self-assessment system, the taxpayer must:

• pay the initial tax for the current tax year,
• pay any tax balance payable for the last tax year, and
• applying for a return on Form 11 for the last fiscal year

with deadlines every year. The deadline is October 31 for submission of paper. Historically it has been extended until mid-November for returns filed online, but it is unclear whether this will continue.

Initial taxes should be at least equal to:

• 90% tax for current tax year
• 100% tax for previous tax year
• 105% tax for previous tax year (for monthly direct debit payment)

Revenue will calculate the tax due for the person who filed for a refund more than two months before the filing deadline.

Underpayment entails interest rate penalty of 0.0219% per day, and underpayment may result in additional charges, prosecutions or publications of their names on the defaulter list.

Universal and Charge (Universal)

Universal Social Charge (USC) is a tax on income that replaces health retribution fees (also known as health contributions) from 1 January 2011. It is charged to your gross income before any pension contribution or PRSI.

If your earnings are less than EUR13, you are not paying for Universal Social Charge (USC). (This limit is EUR4,004 in 2011, EUR10,036 from 2012 to 2014 and EUR12,012 in 2015.) After your earnings exceed this limit, you pay the relevant USC rates for all from your income. For example, if you have an income of EUR13, you will not pay USC. If you have an income of EUR13,001, you will pay 1% for earnings up to EUR12,012 and 3% for earnings between EUR12,012 and EUR13,001.

Aggregate earnings for USC purposes do not include payments from the Department of Social Protection.

USC Standard Rate (2018)

Reduce USC Rate (2018)

USC deduction applies to:

• People who are 70 or more years of their aggregate income for this year are EUR60,000 or less
• Holders of a medical card under the age of 70 whose aggregate income for this year is EUR60.000 or less

Related Social Insurance Payments (PRSI)

PRSI is paid by employees, employers and entrepreneurs as a percentage of wages after pension contributions. This includes social insurance and health contributions. Social insurance payments are used to help pay social welfare payments and pensions. Every week's payments produce a "credit" or "contribution" to employees, whose credits are used to assign rights to untested welfare payments such as Employment Benefits and State Pension (contributions). Health contributions are used to help finance healthcare, even if they do not provide the right to treatment or otherwise. For the most part, two sums are combined together and expressed as a deduction on the paycheck. There is a ceiling of EUR75.036 per year on the employee social insurance element of the payment but the ceiling is removed from 2011 onwards.

Class A

Class A Worker is an under-66 year old employee in industry, commercial, and type of work paid more than EUR38 per week from all jobs, as well as civil servants recruited from April 6, 1995. Class A Employees earn below EUR352 per week placed in subclass AO, and do not pay PRSI/Class A employees earning between EUR352 and EUR356 in the AX subclass; those earning more than EUR356 but less than or equal to EUR500 in the AL subclass. Both subclass pay 4% PRSI, and the first EUR127 income is no longer negligible for this calculation, therefore PRSI is 4% on all Class A income/earners earning more than EUR500 per week in subclass A1 and paying 4% on all income weekly.

Employers of upper-class employees pay 8.5% PRSI for employees who earn below EUR356 per week and PRSI 10.75% for employees who earn more than that amount. The rate applicable for all wages, without limits. Classes A4, A5, A6, A7, A8, and A9 relate to community employment schemes and employer's PRSI exemption schemes. Class A8 is for income below EUR352 per week and does not have an employee's PRSI obligation; A9 class is for more income than that amount and is responsible at an average rate of 4%. Both classes have an employer PRSI level of 0.5%.

Class B, C, and D

Class B workers are permanent and retired civil servants recruited before 6 April 1995, doctors and dentists working in civil service, and gardaÃÆ' recruited before 6 April 1995. Class B workers earning under EUR352 per week are placed in the BO subclass, and do not pay PRSI. Class B workers who earn between EUR352 and EUR500 per week are placed in the BX subclass, and Class B workers earn more than EUR500 per week but are exempt from health contributions placed in subclass B2. Both of these subclasses pay 0.9% PRSI on all earnings except first EUR26 per week. Class B workers earn more than EUR500 per week and are not exempt from health contributions placed in subclass B1. They pay 4% PRSI on the first EUR26 of their weekly earnings, 4.9% at the next EUR1,417, and 5.9% on the balance.

Class C workers were assigned officers from the defense forces, and members of the nursing service of the army, recruited before 6 April 1995. Class D workers were all permanent employees and retired in public services not captured in class B or C, who were recruited before 6 April 1995. Workers in class C and D pay PRSI at the same rate as class B.

Employers of grade B employees pay a flat rate of 2.01% PRSI on all their employees' earnings; for class C, the rate is 1.85%, and for class D is 2.35%, although this is effectively a transfer of money from one government account to another.

Class H

Class H workers are non-commissioning and enlisted officers of the Defense Forces. Class H workers earning under EUR352 per week are placed in the HO subclass, and do not pay the PRSI. Class H workers who earn from EUR352 to EUR500 per week are placed in the HX subclass. Class H workers earn more than EUR500 and are exempt from health contributions placed in the H2 subclass. Workers in each of these classes pay 3.9% PRSI on their earnings except for the first EUR127 per week. Other H-class workers are placed in the H1 subclass. They pay 4% PRSI on the first EUR127 from their weekly earnings, 7.9% at the next EUR1,316, and 8.9% on the balance. Employers of H-class workers pay 10.05% PRSI on all their employees' earnings.

Class J

Class J Workers are employees aged 66 or over, they earn below EUR38 per week, or those who work in subsidiary companies. They only pay a health contribution of 4% if their earnings exceed EUR500 per week, or 5% on amounts that exceed EUR1,443 per week. Employer contribution is 0.5%. Domestic work includes the work of a person subject to class B, C, D, or H in his or her primary job.

Class K and M

Classes K and M apply to revenues subject to health contributions but not to social insurance, including employment pensions. This also applies to judges, state lawyers, and the income of self-employed persons aged 66 years or more.

Class K income is subject to a health contribution of 4% if earnings exceed EUR500 per week, or 5% on amounts exceeding EUR1,443 per week. No entrepreneurs contribution.

Class M relates to persons under the age of 16, who are excluded from the full PRSI, and income that falls below class K is paid to persons exempt from health contributions. It has a zero rate.

Class S

Self-employed persons, including directors of certain companies, pay for S S PRSI classes; classes also apply to certain investment and rental income.

Where income is less than EUR500 per week, S0 subclass applies. If earnings are above EUR500 per week, S1 subclass applies, except for those who are exempt from health contribution, to whom S2 subclass applies. The grades for S0 and S2 subclasses are 3%, and the rates for S1 subtimes are 7% to EUR1,443 per week and 8% on the revenue share above that amount.

Health contribution

Health contribution was replaced by USC from 2011 onwards

How PRSI is paid

The paying S PRSI paying tax payers, and health contributions, together with their taxes. For other taxpayers, deducted from their net income.

Maps Taxation in the Republic of Ireland

Capital gains tax (CGT)

A capital gains tax is paid where a person benefits on the sale of an asset, called a charged asset . The standard CGT rate is 33% with respect to the release made from midnight on 7 December 2013. The tax rate for disposals made in previous years is less: details can be obtained from the Commissioner of Revenue.

Affected people

Any person (including corporation) resident or resident in Ireland shall be liable for CGT for any profit charged at all disposal of the charged asset. A person who is domiciled or an ordinary resident, but not domiciled, in Ireland is solely responsible to CGT for the disposal of assets outside Ireland where the profits are deposited into Ireland.

A non-resident or regular resident in Ireland shall be solely responsible to CGT with the advantage of:

1. The land and buildings in Ireland
2. Minerals or mining rights in Ireland
3. The right of exploration or exploitation in the area specified in Irish Continental Continental
4. Shares (not quoted on the stock exchange) decrease their value from any or all items 1, 2, or 3
5. Irish assets are used for business purposes run in Ireland

Calculation

Gains or losses are calculated as the selling price minus the purchase price. Of the sale price can be reduced the cost of assets, including incidental costs such as freight costs, disposal costs, and costs to increase assets.

When the asset was acquired before 6 April 1974, its value on that date was used as a substitute for the purchase price.

The purchase price, acquisition cost, and repair cost can be adjusted for inflation from 6 April 1974 to 31 December 2002, and a table is published by Revenue for the purpose of calculating this adjustment. Inflation adjustment can only operate to reduce profits; it can not add to losses or turn a profit into a loss.

Offsetting

Capital losses can be offset by capital gains arising in the same or slower tax year. Uncollectible losses (see below) can not be compensated with the fee increment. In any year the forward loss tax must be used before the exemption is applied.

Exceptions and exemptions

• The first net profit of EUR1,270 per individual per year is free. Exceptions are non-transferable between pairs and can not be transferred from year to year.
• Certain assets are assets that are not charged, including:
  • Government securities
  • Savings and savings bond certificates
  • Ground bond
  • Securities issued by certain semi-countries
• Certain benefits/losses are free of charge, including:
  • National Installment Bonus and Bond Rewards
  • Advantages of a life insurance policy or a deferred annuity contract, except those purchased from others or taken after May 1993 with certain foreign insurance
  • The advantages of wasting used things, such as animals and motor cars
  • Gains in the disposal of movable properties that do not dispose of waste of EUR2,540 or less for disposal (disposing of a set of articles for one person or to a connected person is considered a disposal)
  • The benefits gained by local authorities, and some of the benefits gained from pensions, unions, and charities
  • The advantages of betting, lottery, and lottery
• The profits from sales by individuals from their main personal residences (including up to 0.4 hectares of land) are free. If only part of the place is a primary private residence, help is allowed proportionately. This assistance does not apply where land is sold as development land.
• Transfer by parent to/from his/her child on the site where the child will build the main private residence is exempted from CGT for the child staying there for at least three years.
• Sales by a person aged over 55 from a business or farm worth under EUR0.5 million, or to family members, are waived.

Transfers between spouses do not incur costs for capital gains taxes; the acquiring partner is deemed to have acquired the property on the same date and at the same price as the disposing partner.

Payments

CGT is a self-assessment tax for all taxpayers. The tax on profits realized in the first eleven months of this year was paid on December 15 of that year, and the tax on profit realized in December was paid on January 31 of the following year. Returns must be made on October 31 in the following year with full details of the profits.

A person who buys an asset costing more than EUR500,000 must withhold 15% of the price and pay it to Revenue unless Revenue has issued the CG50A certificate to the vendor prior to purchase. The CG50A certificate is issued by Revenue on the application, provided that either vendor resides in Ireland, no CGT is paid for the disposal, or CGT has been paid.

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Value Added Tax (VAT)

Irish Value Added Tax (VAT) is part of the EU Value Added Tax system. These are collected by VAT registered traders on almost all the goods and services they offer. Every vendor in the supply chain, from producer to retailer, collects VAT on its sale and pays it to Revenue, less than the VAT paid payment on its purchase.

Registration limit

Merchants whose turnover exceeds the enrollment threshold, or are likely to exceed their limit within the next 12 months, must register for VAT.

The registration threshold is as follows:

• The base threshold is EUR75,000 (provided no more than 10% of turnover comes from the service and no other conditions below are met).
• The threshold for the person supplying the service, making an order by mail or long-distance sales to Ireland, or supplying the item responsible for the 13.5% or 21% VAT rate he generated from the zero-valued material is EUR37,500.
• The threshold for someone who makes an intra-EU acquisition is EUR41,000.
• There is no threshold for an unregulated person who supplies Irish taxable goods or services, or to someone who receives the so-called Fourth Schedule service (intangible, remotely provided services, such as advertising, broadcasting, and telecommunications services) from abroad - each person must register for VAT.

A person below this limit can register voluntarily. It is often beneficial for people who mainly trade with other businesses to sign up for VAT even when their turnover is below the relevant limits.

VAT rate

VAT rates range from 0% on books, children's clothing and educational services and goods, up to 23% for most items. The 13.5% rate applies to many labor-intensive services as well as restaurant food, take-away food, and bakery products. The 4.8% rate applies to the supply of livestock and bulldog. A "fixed rate increase" of 5.2% applies to the agricultural sector, although this is not entirely a VAT - this is charged by unregistered farmers for VAT to compensate them for the VAT they have to pay to their suppliers. The fixed tariff increase is not paid to Revenue.

Merchants who collect VAT may deduct VAT on their purchase from their VAT obligations, and where VAT paid more than VAT is received, may claim a refund. The VAT period is usually two calendar months (other filing periodicities, such as four months, and semi-annuals also apply under certain circumstances).

VAT refunds are made on the 19th day after the end of the period. However, if you submit a refund on the website, ie ROS ("Online Revenue Service"), and also make payments through ROS, then the due date is extended to 23 days after the end of the period.

Once a year details of VAT refund details should be prepared by the merchant and handed over to the government - merchants can choose their own dates for this. Merchants with low VAT liabilities may opt for semi-annual or quarterly payments rather than biannual standards, and merchants who are generally in the position of claiming VAT payments rather than making payments may result in a monthly refund.

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Deposit interest retention tax

Interest Rate Retention Deposit (abbreviated as DIRT), is a retention tax charged on interest earned on a bank account, as well as several other investments. It was first introduced in Ireland in the 1980s to reduce tax evasion on unpaid earnings.

DIRT is deducted from the source by financial institutions Starting January 1, 2014, DIRT charges 41% (33% in 2013) for payments made annually or more frequently. The tax is withheld by the bank or other deposits before interest is paid to you. DIRT will cost you 36% (in 2013, lower rates in previous years) for payments made less frequently. This is higher D.I.R.T. the exchange rate has been removed, from and from January 1, 2014, and D.I.R.T. a rate of 41% applies to any interest paid or credited to this deposit on or after January 1, 2014.

People aged over 65 years old or underprivileged, whose earnings are less than the exemption limit (currently EUR20,000), may claim a DIRT refund, or may submit an appropriate form to their bank or financial institution to have interest paid free of DIRT.

DIRT does not apply to:

• Interest on deposits in which the beneficial owner is a non-resident
• Company deposits subject to corporate taxes
• Revenue approved pension scheme
• Charity deposit

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Stamp

The stamp is charged to the transport of residential property, non-residential property, and long lease, as well as to the transfer of company shares, bank and card checks (ie ATM cards and credit cards), and insurance policies.

Shipping property

Stamp duty is charged as a percentage of the consideration paid for non-transferable property, including goodwill attached to the business. Returns on stamp duty must be completed online for all conveyances; Physical stamps are no longer attached to documents.

On residential properties

First-time buyers (those who have not previously bought a home in Ireland or in other jurisdictions) are released. One can also qualify as a first-time buyer if newly divorced or separated. Houses or apartments occupied by new owners with floor space of less than 125 m ² may also be excluded, and new homes occupied by owners with a larger floor area than these are valued based on a larger site cost or a quarter of total cost of homes and sites. In all cases, the price does not include VAT.

For deed executed on or after 8 December 2010, the stamp duty tariffs are:.

• First EUR1.000.000: 1%,
• more than EUR1.000.000: 2%,

On a non-residential property

Since October 14, 2008, the transport of non-residential property is charged at an increase rate ranging from 0% for property with a value of EUR10,000 rising to 6% for transactions over EUR80,000.

Exceptions and exemptions

Transfers between pairs are exempt from stamp duty, such as property transfers as a result of court orders in relation to divorce. The stamp duty tariff is divided in two for the transfer between other blood relatives. Intra-group transactions, reconstruction and amalgamation companies, and demutualization, as well as certain transactions involving charities, approved sporting bodies, young farmers, forests, or intellectual property also attract assistance.

Stocks and shares

There is 1% stamp duty on the transfer of shares or securities of any company incorporated in Ireland, except paper-based transfers with consideration of less than EUR1,000.

Bank card and check

Credit cards and credit card accounts are subject to EUR30 per annum. Automatic teller machines and debit cards are charged EUR2.50 each year. Cards that perform both functions are taxed twice, which is a total of EUR5. Unused cards throughout the year are free of charge. Credit card taxes apply per account, but ATM and debit card fees are per card. In any case, where the account is closed year-round, there are exceptions to double taxation.

Checks (technically, all exchanged charges) are taxed at EUR0.50, generally collected by the bank on the issue of each checkbook. Non-life insurance policy is subject to 3% levy and life insurance policy is subject to 1% tax from premium starting June 1, 2009.

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Capital acquisition tax (CAT)

Capital acquisition taxes are charged to gift or inheritance recipients, at a rate of 33% above the tax-free threshold. Gifts and inheritance are a haphazard advantage; the difference is that inheritance is taken on death and gifts are taken apart from death.

The person who provided the property is called the donor or the sender , or the heir or the deceased in the case of the inheritance; the person receiving the property is called a recipient , donee or disponee , or successor in the case of inheritance.

A reward is taken when the beneficiary is entitled to own property for some property without paying full consideration for it. Taxes are paid within four months from the date of the prize; interest charges apply for late payments.

Taxes are generally charged on the taxable property value, which is calculated as:

Market value

less the cost of obligations and expenses to be paid out of gifts or inheritance

= nilai bebas incumbrance

less consideration is paid by the acquirer in money or money

= taxable value

Transfer tax

A disposition may be taxed in Ireland if the property is in Ireland, or if one of the senders or recipients is a resident or ordinary resident of Ireland on the date of disposition. Special rules apply to discretionary trust.

Exceptions and exemptions

CAT can be reduced or eliminated altogether under a number of posts.

Exclude threshold

Historically, group thresholds were indexed with reference to the Consumer Price Index. The tax-free group threshold indexation is removed for prizes and inheritance taken on or after December 7, 2011. The threshold on or after October 14, 2015 is:

• EUR280,000 (Group A) (is EUR225,000 on or after 06/12/2012) where the recipient's relationship to the sender is: son or daughter, child of son or daughter who has died. Children include foster children (since December 6, 2000) and adopted children (since 30 March 2001).
• EUR30,150 (Group B), where beneficiary relationships with responders are: line ancestors (eg parents), lineage descendants (not in A, eg granddaughters), brothers male or female, nephew or nephew.
• EUR15,075 (Group C) where the recipient's relationship to the transmitter is: cousin or stranger.

For gifts and inheritance taken on or after December 5, 2001, only previous allowances received since December 5, 1991 of the same recipient are in the same group threshold combined with current benefits in calculating the tax payable for current benefits.

Heritage, but not a gift, taken by parents of their children is treated as group A, where it is a direct (but not a soul) interest in the property. Under certain circumstances, heirs may take over the deceased spouse for the purpose of determining the applicable group in which the spouse dies before discharging and closer to the immigrant.

Other exceptions

Other major exemptions from the capital acquisition tax are:

• The property passenger between pairs is exempt from CAT. Exceptions also apply to properties that pass Court orders between split or divorced spouses.
• Primary private home . To qualify, the recipient must live: for three years ending on the date of transfer in the residence, or for three of the four years ended on the date of transfer in the residence and residence that has been replaced. In addition, the recipient must not have any other private residence and they should not dispose of the residence for six years after the transfer to them.
• EUR3,000 prizes taken first in each calendar year by beneficiaries of unspecified disponer.
• Prizes or inheritance taken for public use or charity are excluded.
• Objects of national, scientific, historical, or artistic interest, which are allowed to be seen by the public, are excluded. This relief also extends to inheritance properties owned through private companies.
• The amount of retirement lumpsum is waived.
• Certain government securities acquired by non-domiciled or resident benefactors in the State from a transmitter who hold them for at least three years.
• Compensation for personal injury or damage, and lottery winnings are free. This exclusion also includes the support, maintenance, or reasonable educational payments received by a minor at the time of the disponer and the other parent of the child dies.
• Properties acquired based on self-made dispositions are not excluded.
• Inheritance by a parent of a child, in which a child takes a gift or a non-free inheritance from one parent in the last five years, is released.

Relief

Other major reliefs from the capital acquisition tax are:

• The surviving spouse may take the place and status of the relationship in respect of the property obtained by the deceased partner.
• Agricultural assistance . This applies to a farmer - an individual on the date of judgment domiciled in the State, and at least 80% of the gross market value of his assets consisting of agricultural property (ie, agricultural land and buildings, plants, trees and timber, livestock, bloodstock, and agricultural machinery).
• Relief is a 90% reduction of the full market value. Exemptions may be withdrawn if the property is subsequently disposed of within six years from the date of gift or inheritance and the proceeds are not reinvested within one year of disposal (six years in the case of a compulsory acquisition).
• Business help . This applies to the relevant business property, that is, the only trading business, interest in partnership, and non-quoted shares in companies incorporated in Ireland.
• Relief is a 90% reduction of the taxable value. Exemption may be withdrawn if the property is subsequently disposed within six years from the date of gift or inheritance and the proceeds are not reinvested within one year of disposal.
• Favorite niece (or nephew).
• Double taxes with respect to equivalent US and British taxes.
• The proceeds from the life insurance policy are taken to pay inheritance tax or gift tax.
• If the same event raises the liability for CAT and CGT, CGT charges can be credited against CAT to the amount of the CAT.e fee

CAT Return

When a person receives a gift or inheritance which, by itself, or aggregated with the previous benefit taken by the recipient, puts him in the position of having used more than 80% of any group threshold, he must complete the IT38 form and return to Revenue within four month, together with taxes due.

Discretionary Disclaimer Tax

Assets placed in discretionary trust are subject to:

• disposable loads 6% , and
• annual bill 1% .

The charge shall be payable within three months from the "appraisal date", which may be the date set by the trust, the date of death of the settlement, the earliest date on which the trustee may retain the trust property, the date on which it is believed to retain the trust property, to the guardians.

src: cdn.vox-cdn.com

Corporate tax

Corporate taxes are charged to corporate profits that include normal income and taxable profits. Certain costs such as interest payments can be compensated against profit. The company's current tax rate in Ireland ranges from 10% to 25%, depending on the nature of the business.

The primary level, ie 12.5% ​​, applies to the firm's trading revenue. Low compared to international standards.

The higher rate, 25% , applies to non-trading income such as interest gains, income and profits derived from abroad and rental income, and for the benefit of so-called "liberated trade" including land trading, income from working minerals, and petroleum activities.

The 10% rate, introduced in 1981, continues to apply to a number of manufacturing companies, IFSC financing companies and businesses located in the Shannon Free Zone; all great multi-national people. It is used as a marketing incentive to attract foreign direct investment (FDI) to Ireland. Although it is credited with helping the IDA secure FDI millions of euros and thousands of jobs, it is currently being phased out with the last year of the 10% rate likely to be the year 2010.

Certain shipping companies may choose to pay tonnage taxes rather than Corporate Taxes.

src: www.taxation.co.uk

Withholding tax

Some of the allegations described as taxes are not, in the literal sense, actual taxes, but deductions from certain payments made. In each case, the payer withholds the relevant percentage and pays it to Revenue. The recipient is still liable for the tax on the full amount, but may arrange deductions on his overall tax liability. If the amount deducted is less than the tax payable, the recipient is still liable for the difference, and if the amount withheld exceeds the tax due, the recipient may disable it against any other tax due, or get a refund. This contrasts with DIRT, which, while withholding taxes, removes all tax liabilities of the recipient.

Contract Tax Relevant

Relevant Contract Tax (RCT) is a cutting regime applied to contractors in the forestry, construction, and meat processing sectors where tax historically high levels of noncompliance are high.

On December 13, 2011, the Minister of Finance signed an Initial Order for a new electronic RCT system introduced on January 1, 2012. All major contractors in the construction, forestry and meat processing sectors shall be electronically engaged with Revenue. Under the new RCT system, a major contractor must provide Revenue with contract details and subcontractors. It should also notify Revenue of all relevant payments online before the payment is made. Revenue will respond to a payment notice with a deduction authorization that specifies how much tax, if any, should be deducted. Current rate is set at 0%, 20% or 35%. This deduction authorization is sent electronically to the main contractor. The Principal shall provide copies or details of the deduction authorization to the subcontractor if the tax has been withheld. Subcontractors may assign amounts deducted against any taxes which may be incurred, or recover the difference in which the deduction exceeds the tax amount.

Since September 2008, subcontractors no longer charge fees or accounts for VAT on construction service inventory that RCT applies. Conversely, the main contractor has to account for VAT for Revenue (although in general he will be entitled to credit inputs for the same amount). This system is referred to as VAT reverse charge.

Income Tax Dividend

Withholding Tax Dividends are deducted by 20% of dividends paid by Irish companies. This may apply to income tax due, or reclamation in which the recipient is not taxable.

Professional Cutting Tax Service

Professional Withholding Taxes (PSWT) are deducted at the rate of 20% of payments made by government agencies, health councils, state agencies, local authorities, and the like, from payments made to professional services. Professional services include medical, dental, pharmaceutical, optical, aural, veterinary, architectural, engineering, quantity, accounting, auditing, finance, marketing, advertising, legal and geological services, and training services provided to FÃÆ' S withheld from tax ultimately paid by the service provider, or where the provider is non-resident or exempt from tax, reclaimed.

src: www.shelltosea.com

Excise

Excise taxes are imposed on mineral oil, tobacco, and alcohol.

• Mineral oil includes hydrocarbon oil, liquefied petroleum gas, replacement fuels, and additives. Hydrocarbon oils include petroleum oils, coal produced oils, bituminous substances, and liquid hydrocarbons, but not solid or semi-solid at 15 ° C. In addition to taxes, carbon loading is applicable to gasoline, aviation fuel, and heavy oils used as propellant, for air navigation, or for navigation of personal pleasure, and this is scheduled to be extended in May 2010 to apply to other uses of heavy oil and liquefied petroleum gases, and for natural gas.
Tobacco excise applies to tobacco products, including cigars, cigarettes, cavendish, hard pressed tobacco, pipe tobacco, and other tobacco or chewing tobacco. Increased tax rates will bring the price for cigeret up to 50c per package as outlined in Irish Budget 2018.
• Alcohol and alcoholic beverage duties apply to alcoholic products manufactured in Ireland or imported into Ireland. Until 2016, the tax is more than a bottle of wine over 50%.

src: www.irishtimes.com

Other taxes

Various other taxes are charged in Ireland, which are inconsistent with other posts.

Local Property Tax

This is introduced in the 2013 Financial Law, this tax is levied on most properties of 0.18% of self-assessed market value. The assessed value is the value in May 2013 initially. This preliminary assessment will be used until the date of the next valuation in November 2016. A higher rate of 0.25% of market value - the so-called Mansion Tax applies to properties valued in excess of EUR1,000,000.

Plastic bag charging

Since March 2002, retribusi, called Environmental Retributions, have been applied to the supply of plastic shopping bags by retailers. The current levy is 22 cents per plastic bag. s Fee does not apply to:

• A small bag used only to contain the following things, whether packaged or not:
  • Fresh fish and fresh fish products
  • Fresh meat and fresh meat products
  • Fresh poultry and fresh poultry products
• A small bag that is used completely for non-packaged:
  • Fruit, nuts, or vegetables
  • Confectionery
  • Dairy products
  • Cooked food, whether cold or hot
  • Ice
• Bags are provided on airplanes or delivered
• Bags are provided in the air at the airport or in a special passenger port area, for the purpose of carrying goods on board or ship
• Bags sell for 70 cents or more

A small bag is smaller than 225mm wide, 345mm deep, and 450mm long (including the handle). The law requires that user charges be levied.

Vehicle Registration Tax

Vehicle Registration Tax or VRT is subject to the registration fee of a motor vehicle in Ireland, and any motor vehicle taken into that country, other than temporarily by the visitor, must be registered with Revenue and shall be paid by the VRT at the end of the service. days after arriving in this country.

Vehicles are rated under five categories for VRT, depending on the vehicle type.

• Category A includes cars, jeeps, and minibuses that have less than 12 seats, excluding drivers. Taxes are charged based on carbon dioxide emissions per kilometer, ranging from 14% of the open market sale price (for vehicles emitting below 120g CO ₂ /km) to 36% of the open market sale price (for emitting vehicles more than 226g CO ₂ /km).
• Category B includes cars and vans from jeeps. The VRT rate is 13.3% of the open market sale price, with a minimum of EUR125.
• Category C includes commercial vehicles, tractors and buses with at least 13 seats (including driver). VRT charged is EUR50.
• Category D includes ambulances, fire engines, and vehicles used for the transport of road construction machinery. Vehicles in category D are exempt from VRT.

Motorcycles

Scooters and motor scooters are charged for VRT with reference to engine displacement, at a rate of EUR2 per cc for the first 350cc and EUR1 per cc thereafter. There is a reduction depending on the age of the vehicle, from 10% after three months to 100% (actually delivered) for vehicles over 30 years.

Electric and hybrid vehicles

Electric vehicles and hybrid vehicles can have remissions or VRT repayments of up to EUR2,500 until the end of 2010.

VAT

VAT is charged (at inclusive VRT prices) on new vehicles (but not tractors) imported unlisted or within six months of registration outside of Ireland, or on vehicles with odometer readings below 6,000 kilometers in import.

Penalty

Vehicles where VRT should be paid but can not be seized.

Resident non-primary personal dues

Homeowners other than the main private house have to pay a fee, at 2010 EUR200, per year. Fees for 2009 are paid in September, but in subsequent years, payable in March.

The fee applies to "residential property", which includes houses, apartments, apartments or apartments, but excludes:

• Buildings that have a scientific, historical, architectural or aesthetic interest and are open to the public, subject to the approval of the Minister of Public Affairs, Rural and Gaeltacht, and Revenue
• A building that is part of a stock trading business and is never used as a residence, nor does it have any income from it
• Buildings are left by government ministers, housing authorities, or HSE
• Buildings are left by agencies approved by the housing authority
• Buildings are allowed to become a housing authority, or to HSE
• Buildings subject to commercial rates

In addition, the following persons are exempt from payment of fees in connection with the building or building in question:

• A person who occupies the building as a sole or primary residence (which includes the person occupying the building and claiming rent assistance in other parts)
• Charity or discretionary trust
• A divorced or separated person whose ex-wife lives in a building
• A disabled person who lives in a place he does not own (eg a nursing home)
• A person who allows a relative to stay, free of rent, in a building within 2 kilometers of his own residence (vernacularly called "flat grandmother")

If the charge is not paid, it has a cost effect in favor of the local council against the property.

A person who moves home is not responsible for the costs associated with one of the houses that year.

src: taxinstitute.ie

Motor tax

Motor vehicle taxes, paid to local councils where the owner resides, appear when cars or other motor vehicles are used on public roads. A circular receipt, known daily as a tax disc , is issued on payment and must be displayed on the front of the vehicle. Certain vehicles, including state-owned vehicles, fire engines, and vehicles for defective drivers, are exempt from motor vehicle taxes.

Motor vehicle taxes can be paid for three, six, or 12 months, although paying every year is cheaper. This can be paid online; verification of insurance details required to obtain tax disc.

The tax for private cars first registered from July 2008 is calculated on the basis of carbon dioxide emissions; for the car listed before that, the charge depends on the transfer of the machine. The vehicle goods tax rate is determined based on the weight of the gross vehicle, the tax for the bus is based on the number of seats, and the fixed rate applies to other types of vehicles.

src: www.irishtimes.com

Tax evasion and tax evasion

Tax evasion in Ireland, while a common problem historically, is now not widespread. The reason there are two - most people pay at source (PAYE) and penalty for high avoidance. Irish revenues target specific industries each year. Industry includes fast food take restaurants, banks and farmers.
Tax evasion is a legal process in which one's financial affairs are regulated so as to legally pay less tax. In some cases, Revenue will pursue individuals or companies that take advantage of tax evasion; But their success here is limited because tax evasion is entirely legal.

The area where tax evasion can still be found is a business that deals with a lot of cash. Trade, small business, etc., Will sell goods and perform services while receiving cash for goods/services. Buyers will avoid paying VAT at 21% and the seller does not declare money for Income Tax. Earnings carry out random audits on the business to prevent and punish this. Businesses are regularly taken to court for tax evasion. Business income claims will be audited approximately every seven years.

Other methods have also been used by governments to combat tax evasion. For example, the introduction of Taxi Regulators and subsequent regulations for the taxi industry means that the opportunity for taxi drivers to avoid declaring cash income has been reduced. By law, taxi drivers now have to issue electronic receipts for each tariff, effectively recording their income.

src: static.independent.co.uk

Local tax

Prior to 1977, all property owners in Ireland had to pay "tariffs" - based on property "valuation" - to local councils. Tariffs are used by local authorities to provide services such as primary water and garbage collection. Rates for private residences were abolished in 1977, with local authorities instead of receiving funds from the central government. They continue to operate for commercial property.

In recent years, the government has introduced a new local tax. The cost for water will be introduced in 2014. The waste tax, for domestic waste collection, was introduced in the last 15 years. Opponents claim that this is double taxation - that after the abolition of domestic tariffs in 1977, their taxes were raised to fund local authorities. However, with the ever-increasing cost of providing these services, board funding is no longer enough to cover user fees and user fees will free up board budgets for more valuable projects.

Motor vehicle tax is paid to Local Government Fund and distributed among local government.

src: pfsaccountants.co.uk

See also

• Air Travel Tax
• Celtic Tiger
• The Irish Central Bank
• The Republic of Ireland's economy
• Economic history of the Republic of Ireland
• International Financial Services Center
• Irish topics
• Office of the Income Commissioner
• Private Service Number
• PRSAs
• Double Irish settings

References

Foot Records

Source of the article : Wikipedia