|
|
|
|
| MAIN
PERSONAL TAX CREDITS
|
|
|
| |
2005
EURO
|
2004
EURO |
| Personal
Tax Credit |
|
|
| Single
Person |
1,580 |
1,520 |
| Married
Couple/Single Parent |
3,160
|
3,040 |
| Widow(er)
with dependent child (1) |
3,040
|
3,040 |
| Widow(er)
without dependent child |
1,980
|
1,820 |
| Employee
(PAYE) (2) |
1,270
|
1,040 |
| Incapacitated
Child |
1000 |
500 |
| |
|
|
| (1)
Additional credits due for
Widow(er) with dependent children
for first 5 years after
bereavement |
|
|
| (2)
Not available to proprietory
Directors and the self employed |
|
|
| |
|
| Age
Credit |
|
|
| Single/Widowed
Person |
205
|
205 |
| Married |
410
|
410 |
|
|
|
|
| Blind
Persons Credit |
|
|
| Married
(both spouses blind) |
2,000
|
1,600 |
| Single
or married (one spouse blind) |
1,000
|
800 |
| |
|
|
| Home
Loans – Standard Rate |
|
|
| *First-Time
Buyer |
|
|
| Single
Max |
800
|
800 |
| Married
Max |
1,600
|
1,600 |
| Widow(er)
Max |
1,600
|
1,600 |
| *
Now available for 7 years,
previously 5 years |
|
|
| |
|
|
| Non-First
Time Buyer |
|
|
| Single
Max |
508
|
508 |
| Married
Max |
1,016
|
1,016 |
| Widow(er)
Max |
1,016
|
1,016 |
| |
|
|
| Rent
Relief |
|
|
| Under
55 - Single |
300 |
254 |
| Under
55 - Married/Widow(er) |
600 |
508 |
| Over
55 - Single |
600 |
508 |
| Over
55 - Married/Widow(er) |
1,200 |
1,016 |
| |
|
|
| One
income Family Credit |
|
|
| Spouse
caring for children, the aged or
handicapped |
770
|
770 |
| |
|
|
| Dependent
Relative |
60 |
60 |
|
|
|
|
|
|
| |
|
| INCOME
TAX RATES |
Return
to top |
| |
|
|
|
Single & Widowed Persons: No
Dependent Children |
2005
EURO |
2004
EURO |
| 20%
on first |
29,400 |
28,000 |
| 42%
on balance |
|
|
| |
|
|
| Single
& Widowed Persons: Dependent
Children |
|
|
| 20%
on first |
33,400 |
32,000 |
| 42%
on balance |
|
|
| |
|
|
| Married
Couples: One Income |
|
|
| 20%
on first |
38,400 |
37,000 |
| 42%
on balance |
|
|
| |
|
|
| Married
Couples: Two Incomes* |
|
|
| 20%
on first |
58,800 |
56,000 |
| 42%
on balance |
|
|
| |
|
|
| *
Excess over Euro 38,400 non
transferable between spouses |
|
|
| |
|
|
| Tax
Allowance |
|
|
| Cost
of employing carer for
incapacitated individual allowed
at marginal rate of tax |
30,000 |
30,000 |
|
|
| |
|
| BENEFIT-IN-KIND
|
Return
to top |
|
|
Cars
Cash equivalent – 30% of original market value. With effect from 1 January 2004, BIK is calculated on 30% of the open market value of
the car with no reduction for amounts borne by the employee in respect of the car costs.
The percentage which is now applied to the open market value of the company car will be determined based only on business mileage as follows:
|
| Business
Mileage |
%
of OMV |
| |
|
| 15,000
or lesss |
30.0% |
| |
|
| 15,001-20,000 |
24.0% |
| |
|
| 20,001-25,000 |
18.0% |
| |
|
| 25,001-30,000 |
12.0% |
| |
|
| Over
30,000 |
6% |
|
|
|
Private
Use of Employer Van
The
charge to BIK for the private use of an
employer’s van will be calculated at 5% of
the ‘original market value’ of the van
with effect from 1 January 2004. |
| |
|
| Preferential
Loans |
|
| |
|
| Specified
rate for home loans from 1
January 2004 |
3.5%
(Previously 4.55%) |
| Specified
rate for other loans from 1
January 2004 |
11%
(Previously 11%) |
|
|
From
1 January 2004 employers are obliged to
operate PAYE on non cash benefits provided to
employees. These benefits are also liable to
PRSI and Health Levy.
The
main areas of benefit involved are as follows:
•
Company cars.
•
Company loans.
•
Tax paid vouchers.
•
Expense payments on behalf of
employees/directors.
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.
|
|
|
| |
|
| PRSI |
Return
to top |
| |
| |
Contribution
Rate
|
Earnings
Ceiling 2005 Euro
|
Earnings
Ceiling 2004 Euro
|
| Social
Insurance |
|
|
|
| Employer
|
Class
A1 |
|
|
|
| Employer
Contribution (including training
fund levy) – effective 1
March 2002 |
10.75%
(1)
|
No
Ceiling
|
No
Ceiling |
Employee
Earning
over Euro 356 per week or
equivalent) |
Class A1 |
|
|
|
| PRSI
(First
Euro127 of weekly earnings
exempt)
|
4%
|
44,180
|
40,420 |
| Health
Contribution |
2%
(2)
|
No
Ceiling
|
No
Ceiling |
| Total
for Employee |
6%
|
|
|
| |
| Self
Employed Contributions |
|
|
|
| PRSI |
3%(3)
|
No
Ceiling
|
No
Ceiling |
| Health
Contribution |
2%
(2)
|
No
Ceiling
|
No
Ceiling |
| Total |
5%
|
|
|
| |
(1)
8.5% where weekly earnings are
less than Euro 356
(2) Does not apply where
aggregate earnings are less than
Euro 20,800
(3) 3% subject to minimum payment
of Euro 254 |
|
|
| |
|
| CORPORATION
TAX |
Return
to top |
| |
|
| Standard
Rate on Trading Income |
12.5%
from 1 January 2003 |
| Investment/Rental
Income |
25% |
| Manufacturing
Rate |
10%
(only for established qualifying
companies) |
| Special
rates apply to dealings in land |
|
The payment date for preliminary tax,
which must be at least 90% of the final
liability, is being brought forward, over a
transitional period of five years from 2002,
to one month before the end of the accounting
period. Preliminary tax is based on the
current year’s liability. However, small
companies can base the preliminary tax payment
on the previous year’s liability.
A small
company is a company with a Corporation Tax
liability of less than €50,000 in the
preceding year. For accounting periods ending
on or after 1 January 2003 and before 1
January 2006 preliminary tax (90%) is payable
in two instalments. The first instalment is
due one month before the end of the accounting
period as follows:
|
| Accounting
Periods Ending on or after |
%
of current liability |
%
of previous year's liability
(Small Company) |
| 1
January 2004 |
54 |
60 |
| 1
January 2005 |
72 |
80 |
| 1
January 2006 and after |
90 |
100 |
The second payment of preliminary
tax to bring the total
preliminary tax payment up to 90%
of the current years liability is
due within 5 months 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.
|
|
|
| |
|
| CAPITAL
GAINS TAX |
Return
to top |
| |
| Per
Individual |
|
| |
|
| Annual
exemption |
Euro
1,270 |
| |
|
| Rate |
20% |
| |
|
| Retirement
Relief exemption limit |
Euro
500,000 |
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 in the
following tax year.
|
|
|
| |
|
| CAPITAL
ALLOWANCES |
Return
to top |
| |
| |
Motor
Vehicles(1) |
Plant
& Machinery(1) |
Industrial
Buildings |
Hotels(2)
|
| |
Year
1 – 8 |
Year
1 - 8 |
|
|
| Writing
Down Allowance |
12.5
% per annum |
12.5
% per annum |
4%
per annum |
4%
p.a
|
Note 1
These allowances apply to
expenditure incurred on or after
4 December 2002, except where a
written contract is in place
before that date and the
expenditure is incurred by 31
January 2003.
Note 2
The special regime of capital
allowances of 15% per annum over 7 years was
terminated as and from 4 December 2002.
Transitional provisions provide for the
continued availability of the special regime
where an application for planning permission
in respect of building work has been made to
the local authority on or before 31 December
2004 and the expenditure is incurred by 31
July 2006.
|
| |
| Motor
Vehicles |
| Maximum
allowable capital cost for new
and second hand private cars
remains at Euro 22,000. |
|
|
| |
|
| PROPERTY
INCENTIVES |
Return
to top |
| |
A
package of tax incentives are
available for Urban, Rural and
Town Renewal Schemes, Multi
Storey Car Parks, Living over the
Shop Scheme, Nursing Homes,
Student Accommodation, Buildings
used for third level purposes,
Park & Ride Scheme.
|
|
The
termination date for incurring qualifying
expenditure for the following tax incentive
schemes has been extended from 31 December 2004 to
31 July 2006:
Urban,
Rural and Town Renewal Schemes, Multi Storey
Car Parks, Student Accommodation, Park &
Ride Facilities, Hotels and Holiday camps,
Holiday Cottages, Living Over The Shop Scheme.
Tax
incentives for incurring qualifying
expenditure is also available for the
following schemes:
Nursing
Homes, Private Convalescent Facilities,
Childcare Facilities, Private Hospitals,
Sports
Injury Clinics.
|
| The
incentives include the following: |
| |
- Commercial
Property.
- Capital
Allowances on development
of commercial and
industrial buildings.
- Double
Rent Allowance for
traders.
- Rates
remission.
- Residential
Property.
- Owner
Occupier Allowances on
construction and
refurbishment.
- ‘Section
23’ Type Relief for
rented residential
accommodation.
- Childcare
Facilities.
- 100%
Accelerated Allowances
introduced in the first
year on childcare
facilities.
|
| |
|
| |
|
|
PENSIONS
|
Return
to top |
| |
| Contribution
level deductible for tax purposes
as follows: |
|
| Age
|
% |
| Up
to 30 |
15 |
| 30
to 39 |
20 |
| 40
to 49 |
25 |
| 50
and Over |
30 |
30% also applies to individuals
with limited earnings span e.g.
athletes, entertainers.
|
There is a cap of Euro254,000 per
annum on the amount of earnings
on which tax relief may be
obtained for contributions by
individuals to Retirement Annuity
Contracts (RAC's) and Personal
Retirement Savings Account (PRSA). |
|
| |
|
|
| VAT |
Return
to top |
| |
| |
|
|
| VAT
Registration Thresholds: |
|
Euro |
|
Supply
of taxable goods in Ireland.(1) (90%
of turnover must be from the sale
goods for this threshold to
apply)
|
|
51,000 |
|
Provision
of taxable services in Ireland
(1) |
|
25,500 |
Note
1.
These thresholds do not apply
to traders established outside
Ireland who must register
irrespective of turnover.
Note 2.
A registration threshold of
EURO 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
EURO 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. |
|
|
|
|
| VAT
rates: |
|
|
21%
|
This
standard rate applies to all
supplies not chargeable at other
rates.
|
Examples
- Cars, Petrol / Diesel,
Telephone services, soft drinks
and alcohol, computers and
software, consultancy services. |
13˝%
|
With
effect from 1st January 2003 |
Examples
- Heating fuel, electricity,
restaurant services, newspapers,
hotel and B&B lettings,
property. |
0%
|
|
Examples
- Exports, certain food and
drink, oral human medicine,
books, children's clothing and
footwear. |
| 4.8% |
|
Examples
- Livestock, live greyhounds ,
hire of horses and the "Flat
Rate Addition" . |
| VAT
Exempt Services |
|
Examples
- Financial, insurance,
educational, training, medical,
optical, and dental and passenger
transport services. |
|
|
| |
|
| GIFT/INHERITANCE
TAX |
Return
to top |
| |
| |
2005
Euro |
2004
Euro |
| |
|
|
| Threshold
amount |
Nil |
Nil |
| Excess |
20%
for gifts and inheritances
|
20%
for gifts and inheritances |
| Thresholds |
|
|
| Parents
to child or minor child of a
deceased child/Child to parent* |
456,438** |
456,438 |
| Blood
relative |
45,644** |
45,644 |
| Others |
22,822** |
22,822 |
| |
|
|
*
Applies only to inheritances
taken on the date of death.
** Threshold amount for 2005 will
be increased in line with
inflation. The relevant details
will not be available until
January 2005. |
| No
gift/inheritance tax is payable
between spouses.
Annual
gift exemption Euro 3,000
per
individual.
|
|
|
|
| |
|
| CAPITAL
DUTY (with effect from
2/12/2004)
0.5% |
| |
|
| STAMP
DUTY |
Return
to top |
| |
| |
|
|
|
| Main
Rates |
|
|
% |
| |
|
|
|
| Stocks
& Shares |
|
|
1 |
| |
|
|
|
| Land/Commercial
Buildings/Goodwill |
|
|
|
| |
|
|
|
| Consideration |
|
|
|
| Up
to Euro 10,000 |
|
|
Exempt |
| Euro
10,001 - Euro 20,000 |
|
|
1% |
| Euro
20,001 - Euro 30,000 |
|
|
2% |
| Euro
30,001 - Euro 40,000 |
|
|
3% |
| Euro
40,001 - Euro 70,000 |
|
|
4% |
| Euro
70,001 - Euro 80,000 |
|
|
5% |
| Euro
80,001 - Euro 100,000 |
|
|
6% |
| Euro
100,001 - Euro 120,000 |
|
|
7% |
| Euro
120,001 - Euro 150,000 |
|
|
8% |
| Over
Euro 150,000 |
|
|
9% |
| |
|
|
|
|
| Residential
Property Consideration
|
|
FirstTime
Buyer |
Other
Owner
Occupiers |
Investors
– New & Second hand
Properties |
| Up
to Euro 127,000 |
|
Exempt |
Exempt |
Exempt |
| Euro
127,001 – Euro 190,500 |
|
Exempt |
3% |
3% |
| Euro
190,501 – Euro 254,000 |
|
Exempt |
4% |
4% |
| Euro
254,001 – Euro 317,500 |
|
Exempt |
5% |
5% |
| Euro
317,501 – Euro 381,000
|
|
4.5% |
6% |
6% |
| Euro
381,001 – Euro 635,000
|
|
7.5% |
7.5% |
7.5% |
| Over
Euro 635,001 |
|
9% |
9% |
9% |
|
| |
|
|
| DEADLINES |
Return
to top |
| |
Capital Gains Tax:
|
|
|
Disposals
made between
1 January 2005 & 30 September 2005 |
31
October 2005 |
|
Disposals
made between 1
October 2005 & 31 December 2005 |
31
January 2005 |
| |
|
| Income
Tax: |
|
| Preliminary
Income Tax Payment for 2005 |
31
October 2005 |
| Pay
Balance of Tax for 2004 |
31
October 2005 |
| File
Personal Tax Return for 2004 |
31
October 2005 |
| |
|
| Corporation
Tax: |
|
Company
Tax Payments
(for accounting periods ending on
or after 1 January 2003) |
1.
One month before year end
2. Five months and 28 days after
year end.
3. Balance of tax to be paid
within nine months of year end |
| Company
Tax Returns |
Nine
months after year end |
|
|
|
| |
Return
to top
|
|
