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MAIN
PERSONAL TAX CREDITS
|
| |
| |
2008
€ |
2009
€ |
| Personal
Tax Credit |
|
|
| Single
Person |
1,830 |
1,830 |
| Married
Couple/Single Parent |
3,660 |
3,660 |
| Widow(er)
with dependent child
after 1st
year of bereavement (1) |
4,000 |
4,000 |
| Additional Widow(er) |
600 |
600 |
| Employee
(PAYE) (2) |
1,830 |
1,830 |
| Incapacitated
Child |
3,660 |
3,660 |
| |
|
|
| (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 |
325 |
325 |
| Married |
650 |
650 |
|
|
|
|
| Blind
Persons Credit |
|
|
| Married
(both spouses blind) |
3,660 |
3,660 |
| Single
or married (one spouse blind) |
1,830 |
1,830 |
| |
|
|
| Home
Loans – Standard Rate |
|
|
|
First-Time
Buyer - Years 1 and 2 - 25% |
|
|
| Single
Max |
2,000 |
2,500 |
| Married
Max |
4,000 |
5,000 |
| Widow(er)
Max |
4,000 |
5,000 |
| |
|
|
|
First-Time
Buyer - Years 3-5 - 22.5% |
|
|
| Single
Max |
2,000 |
2,250 |
| Married
Max |
4,000 |
4,500 |
| Widow(er)
Max |
4,000 |
4,500 |
| |
|
|
|
First-Time
Buyer - Years 6&7 - 20% |
|
|
| Single
Max |
2,000 |
2,000 |
| Married
Max |
4,000 |
4,000 |
| Widow(er)
Max |
4,000 |
4,000 |
| |
|
|
| Non-First
Time Buyer |
|
|
| Single
Max |
600 |
450 |
| Married
Max |
1,200 |
900 |
| Widow(er)
Max |
1,200 |
900 |
| |
|
|
| Rent
Relief |
|
|
| Under
55 - Single |
400 |
400 |
| Under
55 - Married/Widow(er) |
800 |
800 |
| Over
55 - Single |
800 |
800 |
| Over
55 - Married/Widow(er) |
1,600 |
1,600 |
| |
|
|
| One
income Family Credit |
|
|
| Spouse
caring for children, the aged or
handicapped |
900 |
900 |
| |
|
|
|
Tax Credit on Trade Union
Subscriptions |
70 |
70 |
| Dependent
Relative |
80 |
80 |
| |
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INCOME
TAX RATES |
Return
to top |
| |
|
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|
Single & Widowed Persons: No
Dependent Children |
2008
€ |
2009
€ |
| 20%
on first |
35,400 |
36,400 |
| 41%
on balance |
|
|
| |
|
|
| Single
& Widowed Persons: Dependent
Children |
|
|
| 20%
on first |
39,400 |
40,400 |
| 41%
on balance |
|
|
| |
|
|
| Married
Couples: One Income |
|
|
| 20%
on first |
44,400 |
45,400 |
| 41%
on balance |
|
|
| |
|
|
| Married
Couples: Two Incomes* |
|
|
| 20%
on first |
70,800 |
72,800 |
| 41%
on balance |
|
|
| |
|
|
| *
Excess over € 45,400 non
transferable between spouses |
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| |
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|
Income Levy |
|
|
| 1%
on first |
|
100,100 |
| 2%
on next |
|
150,020 |
| 3%
on incomes over |
|
250,120 |
|
Does not apply to
welfare payments and employees earning
less than
€18,304 or where an individual is aged 65
or over and his or her aggregate income does not
exceed €20,000 (€40,000 for married couples) in
the tax year. The levy is applied to income
before relief for pension contributions and
deductions for capital allowances. The
levy is in addition to the Health Contribution
Levy that was increased in Dec 2007 to 2.5% for
income in excess of
€100, 100. |
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| Tax
Allowance |
|
|
| Cost
of employing carer for
incapacitated individual allowed
at marginal rate of tax |
50,000 |
50,000 |
|
Rent-a-Room Relief (private
residence) |
10,000 |
10,000 |
|
Film Investment |
25,400 |
25,400 |
|
BES
Scheme (Business Expansion Scheme)
(max relief) |
150,000 |
150,000 |
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BENEFIT-IN-KIND
|
Return
to top |
| |
Parking levy in urban
areas
Ernst & Young says that as
announced in the Budget, a
parking levy is being introduced
that will impose an annual tax
cost of €200 on employees that
are provided with car parking
facilities. The levy applies to
parking facilities provided in
certain areas of the cities of
Dublin, Cork, Waterford, Galway
or Limerick. The levy will be
collected by employers from
employees by reduction of their
net salary in the same manner as
PAYE. An important point to note
is that any reimbursement to the
employee of the parking levy by
the employer will not be an
allowable expense in computing
taxable profits.
The levy will
be time apportioned for part
time employees, but will not be
less than €100 per annum.
Exemptions are provided for
periods such as maternity leave
and the 10 weeks preceding
maternity leave. Other
exemptions include parking
spaces provided to disabled
drivers, and parking spaces for
company provided vans,
motorbikes or state cars and for
night workers.
The levy will also apply
where an employee is not
provided with a dedicated
parking space. However, it will
be reduced to €100 per annum
where the ratio of spaces
available, relative to the
number of employees eligible to
use them, is two to one, or
greater.
No charge will arise if an
employee opts not to use the
space. The employee must however
advise the employer in writing.
Records of the employees that
are provided with parking must
be kept. The penalty for not
imposing the levy or for not
keeping adequate records is
€3,000. The exact locations
where the levy will apply, and
its effective date, have yet to
be announced.
Benefit-in-kind -
company cars
E&Y also says that a new system
for calculating the taxable
benefit arising from the
provision of a company car based
on CO2 emissions came into
effect from 1 January 2009. It
only applies to new
cars which are provided after
that date. The existing basis of
taxation will continue to apply
to cars provided to employees
prior to 1 January 2009.
Under the new system, the
taxable benefit-in-kind will
still be calculated as a
percentage of the original
market value of the car, with
reductions for users with high
business mileage. However, for
new cars provided after 1
January 2009 the percentage
charged will vary, depending on
the car’s CO2 emissions. Higher
percentage charges will apply to
vehicles with emission ratings
of more than 155g/km. The
highest rate will apply to
vehicles with emission ratings
of more than 225g/km.
Where the higher rates apply
the maximum percentage charge
will increase from 30 per cent
to either 35 or 40 per cent
depending on the level of
emissions. Cars having emissions
in the range 0 to 155g/km will
not see any increase in the rate
of benefit in kind charged.
Typically most cars up to mid
sized family saloons will be
within the lower band.
The changes will not in general
result in any reduction in the
level of benefit-in-kind charged
on company cars. Existing
company car users will not
suffer any increase on their
current car as a result of the
changes. It will however impose
an increased charge on less
‘environmentally friendly’ cars
which are first provided post 1
January 2009. As such, the
changes are likely to act more
as a disincentive to provide
such cars, rather than as an
incentive to provide greener
ones.
Employers are likely to be
unhappy with the additional
complexity and administration
the system will impose on them,
with two parallel systems in
operation for the foreseeable
future and up to 15 different
rates of BIK applicable.
|
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|
Cars allocated before Jan 01, 2009
Cash equivalent – 30% of original market
value. BIK is calculated on 30% of the open
market value of the car with a deduction 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 less |
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
is calculated at 5% of the ‘original market
value’ of the van with effect from 1 January
2004. |
| |
|
| Preferential
Loans |
|
| |
|
| Specified rate for home loans |
5.5% |
| Specified rate for other loans |
15% |
|
|
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.
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| |
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PRSI |
Return
to top |
| |
| |
Contribution
Rate
|
Earnings
Ceiling 2008 €
|
Earnings
Ceiling 2009 €
|
| Social
Insurance |
|
|
|
|
Employer
|
Class
A1 |
|
|
|
| Employer Contribution (including training fund
levy) |
10.75%
(1)
|
No
Ceiling
|
No
Ceiling
|
Employee
Earning
over € 356 per week or
equivalent) |
Class A1 |
|
|
|
| PRSI
(First
€127 of weekly earnings
exempt)
|
4%(2)(3)
|
50,700
|
52,000
|
| Health
Contribution |
2%
(4)(5)
|
No
Ceiling
|
No
Ceiling
|
| Total
for Employee |
6%
|
|
|
|
As from 1 January 2009, the
employee weekly threshold for liability to PRSI
is €352. |
| |
|
Self
Employed Contributions |
|
|
|
| PRSI |
3%(6)
|
No
Ceiling
|
No
Ceiling |
| Health
Contribution |
2%
(4)(5)
|
No
Ceiling
|
No
Ceiling |
| Total |
5%
|
|
|
| |
(1)
8.5% where weekly earnings are not more than
€356
(2) For those earning over €352 per week or
equivalent
(3) First €127 of weekly earnings exempt
(4) No health levy for earners where income is
not more than €500 per week.
(5) Rate increases to 2.5% for earners where
income exceeds €1,925 per week.
(6) 3% subject to minimum payment of €254 |
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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 |
|
Small Companies
With effect from 6 December 2007 a small company
is a company with a corporation tax liability of
less than €200,000 in the preceding year.
Preliminary tax of at least 90% of the
liability for the period or 100% of previous
year’s liability is due one month (by the 21st
day of that month) before the end of the
accounting period.
New or start up companies with a Corporation
Tax liability of less than €200,000 in their
first accounting period will not be required to
pay Preliminary Corporation tax. The liability
is paid when the return is filed.
Other Companies
Preliminary Tax for an accounting period
commencing before 14th October 2008 of at least
90% of the liability for the period is due one
month (by the 21st day of that month) before the
end of the accounting period.
In respect of accounting periods commencing
after 14th October 2008 preliminary tax is due
in two installments.
The first installment will be payable in the
sixth month of the accounting period (by the
21st day of that month) and the amount payable
will be 50% of corporation tax liability in the
preceding accounting period of 45% of
corporation tax liability for the current
accounting period.
The second installment will be payable in the
eleventh month (by the 21st day of that month)
of the accounting period and the amount payable
will bring the total preliminary tax paid to 90%
of the corporation tax liability for the current
accounting period.
The final balance is payable at the Return
filing date i.e. 21st day of the ninth month
following the end of the accounting period.
Start-Up Companies
New start-up companies which commence trading in
2009 will be exempt from tax, including capital
gains, in each of the first three years to the
extent that their tax liability in the year does
not exceed €40,000.
The payment date for preliminary tax,
which must be at least 90% of the final
liability, has been brought forward, 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.
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CAPITAL
GAINS TAX |
Return
to top |
|
| Per
Individual |
|
| |
|
| Annual
exemption |
€1,270 |
| |
|
| Rate |
22% |
| |
|
| Retirement
Relief exemption limit |
€750,000 |
| The payment date
in respect of disposals in the period January to
November has been changed to mid-December and
the tax on disposals in December will now be due
on the following 31 October. |
|
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| |
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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 |
A revised scheme of capital allowances and
leasing expenses for cars used for business
purposes is being introduced, under which the
allowability of allowances and expenses is
linked to the CO2 emission levels of the
vehicles. |
| Motor
Vehicles |
| Maximum
allowable capital cost for new
and second hand private cars, purchased on or
after 1 January, 2007, is €24,000. |
|
|
RESEARCH & DEVELOPMENT |
Return
to top |
| |
|
A credit of up to 25% (20%
for periods commencing before 1 January
2009) of a
company’s expenditure on qualifying research
and development activity can be offset
against a company’s corporation tax
liability.
The method of calculating
the relief is an incremental one using a
base year to determine
the level of incremental expenditure.
The base year is fixed at
2003 until 2013.
Partial relief is also
available to companies for the cost of
sub-contracting research and
development work to unconnected parties.
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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 |
| 60
and Over |
40 |
30% also applies to individuals
with limited earnings span e.g.
athletes, entertainers.
|
|
There is a cap
of €150,000 for 2009 (€275,239 for 2008) on
the amount of earnings on which tax relief
may be obtained for contributions by
individuals to Retirement Annuity Contracts
and Personal Retirement Savings Account.
This cap also applies for employee
contributions to occupational pensions
schemes.
There is a
cap on the allowable pension fund limit of
€5,418,085 or, if higher, the value of the
fund on the 7 December 2005. |
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VAT |
>Return
to top |
| |
| |
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|
| VAT
Registration Thresholds: |
|
€ |
|
Supply
of taxable goods in Ireland.(1) (90%
of turnover must be from the sale
goods for this threshold to
apply)
|
|
€75,000 ( €70,000 up to 1 May
2008) |
|
Provision
of taxable services in Ireland
(1) |
|
€37,500 ( €35,500 up to 1 May
2008) |
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.
Note 4.
A registration threshold of €nil
also applies to certain persons acquiring
certain services in Ireland from abroad.
|
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|
| VAT
rates: |
|
|
21.5%
|
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˝%
|
|
Heating fuel, electricity,
restaurant services, newspapers, hotel and B&B
lettings, property and Child Car Seats (with
effect from 1 May 2007, please see below) |
0%
|
|
Examples
- Exports, certain food and
drink, oral human medicine,
books, children's clothing and
footwear. |
| 4.8% |
"Flat Rate Addition" 5.2% |
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. |
|
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|
GIFT/INHERITANCE
TAX |
Return
to top |
| |
| |
2008€ |
2009
€ |
| |
|
|
| 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* |
€496,824 |
€521,208 |
| Blood
relative |
€49,682 |
€52,121 |
| Others |
€24,841 |
€26,060 |
| |
|
|
| |
| No
gift/inheritance tax is payable
between spouses.
Annual
gift exemption €3,000
per
individual. The base
date for aggregation is 5 December 1991.
|
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| |
|
|
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 € 10,000 |
|
|
Exempt |
| €10,001 - €20,000 |
|
|
1% |
| €20,001 - €30,000 |
|
|
2% |
| €30,001 - €40,000 |
|
|
3% |
| €40,001 - €70,000 |
|
|
4% |
| €70,001 - €80,000 |
|
|
5% |
| Over €80,000 |
|
|
6% |
| |
|
|
|
|
| Residential
Property Consideration
|
|
FirstTime
Buyer |
Other
Owner
Occupiers |
Investors
– New & Second hand
Properties |
| Up
to €122,000 |
|
Exempt |
Exempt |
Exempt |
| NEXT €875,000 |
|
Exempt |
7% |
7% |
|
BALANCE |
|
Exempt |
9% |
9% |
|
| |
|
|
|
DEADLINES |
Return
to top |
| |
Capital Gains Tax:
|
|
|
Disposals
made between
1 January 2009 & 30 November 2009 |
Mid- Dec 2009 |
|
Disposals made between 1 December 2009 & 31
December 2009 |
31 October 2010 |
| |
|
| Income
Tax: |
|
| Preliminary Income Tax Payment for 2009 |
31 October 2009 |
| Pay Balance of Tax for 2008 |
31 October 2009 |
| File Personal Tax Return for 2009 |
31 October 2009 |
| |
|
| Returns |
|
|
Individuals – 2008 Disposals |
31
October 2009 |
|
– 2009 Disposals |
31
October 2010 |
|
Company – 2009 Development Land |
31
October 2009 |
|
– 2009 Other |
CT
Return Date |
| |
|
| Corporation
Tax: |
|
Small Companies
1. 90% current year liability / 100% previous
year liability due one month before
year end (by the 21st day of that month);
2. Balance of tax to be paid on date the
Corporation Tax Return is due.
Other Companies
1. 45% current year liability / 50% previous
year liability due in sixth month of
accounting period (by the 21st day of that
month);
2. Balance to 90% of current year liability due
one month before year end (by 21st day of that
month);
3. Balance of tax to be paid on date the
Corporation Tax Return is due.
Company Tax Returns 21st day of the ninth month
after the end of the accounting period. |
|
| Company
Tax Returns |
21 days of Nine
months after year end |
|
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Return
to top
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Return
to Top
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| The
Finfacts Guinness Pint Index
The ratio of the price of pint to average earnings |
| |
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Believe
those who search for truth. Doubt those who claim to have found
it
-André
Gide (1869-1951) Nobel Laureate 1947 |
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