IRISH TAXATION 2014 and 2013
   
 
US company profits per Irish employee at $970,000; Tax paid in Ireland at $25,000 - - includes details of multinational corporate tax avoidance in Ireland

Corporate Tax 2014: US proposal of 17% rate for foreign profits - - a foreign profits tax that would finance a cut in the federal tax rate

Irish Corporate Tax 2014: How official spin and distortion works - in short-term -- Ireland's headline rate of 12.5% is half the simple average of 25% for the OECD's 34 mainly developed countries. It's not an issue of contention in the current development of international tax rules.

Irish Corporate Tax 2014: Noonan signalls publicity offensive on effective rate -- the Irish Government says it has no responsibility for Irish offshore companies that are used for tax avoidance. However, in 2013 it did end Apple's use of them as 'stateless' which enabled the electronics giant to avoid having to use the 'Double Irish Dutch Sandwich' dodge.

 
MAIN PERSONAL TAX CREDITS
 
  2014
2013
Personal Tax Credit    
Single Person 1,650 1,650
Married(1) Couple/Single Parent 3,300 3,300
Widow(er)(1) with dependent children 1st year of bereavement; Year 2 €3,150 and Year 5 at €1,800 3,600 3,600
Single person child carer/ One Parent family 1,650 1,650
Employee (PAYE) (2) 1,650 1,650
Incapacitated Child 3,300 3,300
     
(1) Or in a Civil Partnership    
(2) Not available to proprietary directors and the self employed    
     
Age Credit    
Single/Widowed Person 245 245
Married 490 490
     
Blind Persons Credit    
Married (both spouses blind) 3,300 3,300
Single or married (one spouse blind) 1,650 1,650
     
Home Loans – Standard Rate    

Mortgage interest relief discontinued in respect of any home loan in place over 7 years.

 
  • Qualifying loans taken out on or after 1 January 2004 and on or before 31 December
    2012 qualify for tax relief up to the end of 2017;
  • For individuals that purchased their principal private residence on or after 1 January
    2004 and on or before 31 December 2008, the rate of tax relief on the interest paid is
    increased to 30% (for 2012 to 2017);
  • Mortgage interest relief will no longer be available on loans taken out on or after 1
    January 2013 and will be fully abolished from 2018.

Loans that took effect in 2012 and 2013 - Mortgage interest relief is available for tax years 2013 to 2017 in respect of:

  • Interest paid on a loan taken out in 2013 to construct a home on a site but only where such site was bought by way of a loan taken out in 2012 and
  • Interest paid on a loan to repair, develop or improve a home but only where loan approval was in place in 2012 and part of the loan was used in 2012 and the balance used in 2013.

In both cases, any necessary planning permission must have been in place on or before 31 December 2012.

Loans taken out prior to 1 January 2004 are no longer eligible for mortgage interest relief.

First-Time Buyer

Year 1 and 2 – 25%

   
Single

Married/widower or surviving Civil Partner

2,500

5,000

2,500

5,000

Year 3 to 5 – 22.5%    
Single

Married/widower or surviving Civil Partner

 2,250

4,500

  2,250

4.500

Year 6 and 7 – 20%    
Single

Married/widower or surviving Civil Partner

2,000

4,000

2,000

4,000

     
Non-First Time Buyer    
Single Max 450 450
Married/widower Max or surviving Civil Partner 900 900
     
Rent Relief (20% of rent subject to maximum)*    
Under 55 - Single 160 240
Under 55 - Married/Widow(er) 320 480
Over 55 - Single 320 480
Over 55 - Married/Widow(er) 640 800
 * Relief is not available to an individual that is considered a ‘new claimant’, i.e. an individual who is not entitled to relief on the 7th of December 2010.
One income Family Credit    
Spouse caring for children, the aged or handicapped 810 810

Tax Credit on Trade Union Subscriptions

  Abolished
Dependent Relative 70 70
     
TAX ALLOWANCES - - MARGINAL RATE LIMITS    
  • Carer Allowance: Cost of employing carer for incapacitated individual 50,000;
  • Film Investment (max relief) 50,000;
  • Rent-a-Room Relief (private residence) 10,000.

Budget 2014 provided for the phased abolition (over 4 years) of marginal tax relief for loans used to acquire an interest in a partnership. New loans taken out from 15 October 2013 do not qualify for relief.

 

 
INCOME TAX RATES Return to top
   

Single & Widowed Persons: No Dependent Children

2014

2014
20% on first 32,800 32,800
41% on balance    
     
Single & Widowed Persons: Dependent Children    
20% on first 36,800 36,800
41% on balance    
     
Married Couples/Civil partnership: One Income    
20% on first 41,800 41,800
41% on balance    
     
Married Couples/Civil partnership:: Two Incomes*    
20% on first 65,600 65,600
41% on balance    
     
* Excess over €41,800 non transferable between spouses    
     
Universal Social Charge (USC)    
Exemption 10,036 10,036
First €10,036 2% 2%
€10,037 to €16,016 4% 4%
Over €16,017 7% 7%
Over €100,000 (self-employment income only) 10% 10%
Over 70: Over €100,000 (self-employment income only) 7% 7%
For those under the age of 70 with a medical card, income over €16,016 per annum is
liable at 4% and self-assessed income in excess of €100,000 is liable at 7%.

The standard rate of USC will apply to those aged 70 and over and medical card
holders (PAYE/Self-Employed Income Earners) earning €60,000 and above with effect
from 1 January 2013

Property Relief Surcharge    
For individuals with gross income over €100,000, a Property Relief Surcharge at a rate of
5% on the amount of income that is sheltered either by way of Section 23 Type Relief or
by Accelerated Capital Allowances.
 
 
BENEFIT-IN-KIND Return to top
 
The charge to BIK on company cars is currently based on a fixed percentage of the original market value of the car provided to the employee, starting at 30% and reducing to 6% depending on the level of annual business mileage.

The Minister of Finance proposes that the charge to BIK on company cars be based on the cars level of CO2 emissions. However, this is subject to a ministerial commencement order.

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:
Cycle to Work Scheme
Subject to certain conditions, an employer can provide cycling and related safety equipment to an employee, up to a maximum value of €1,000 per employee, without applying PAYE and PRSI to that benefit.
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. However, this charge does not arise where the employee performs at least 80% of his/her duties of employment away from the employer’s premises (subject to certain other conditions).

   
Preferential Loans  
   
Specified rate for home loans  4.0% 
Specified rate for other loans 13.5% 

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 the Universal Social Charge.

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.

DIRT

The rate of Deposit Interest Retention Tax (DIRT) increases from 33% to 41% in 2014 (30% in 2012). Exit tax applying to life insurance policies and investment funds also increased to 41% from 36% (33% in 2012).

Both increases are effective from 1 January 2014.

Residential Property Tax/ Household Charge / NPPR Levy

The Minister of Finance announced in Budget 2013 a new Local Property Tax (LPT) and it came into effect  force on 1 July 2013.

LPT is based on the market value of the property and the property owner will be required to self-assess the value of their property. The LPT is administered by the Revenue Commissioners and relevant guidance in respect of valuing a property and the initial valuation (as at 1 May 2013) will remain valid up to and including 2016.

There is a system of market value taxable bands with the initial banding covering €0 to €100,000 and bands of €50,000 width thereafter up to €1m in value. The LPT is calculated by applying the appropriate rate to the mid-point of the band.

Where the property is valued at €1 million or lower, the LPT will be charged on the mid-point of the relevant band at a rate of 0.18%.

For properties that are valued over €1m, the LPT will be charged at 0.18% on the first €1m and then at 0.25% on any balance in excess of €1m, with no banding applied.

There will be a number of payment options available including a voluntary deferral and exemptions (where specific conditions are met). However, certain new and previously unused houses that are purchased between 1 January 2013 and 31 December 2016 will be exempt from the LPT until the end of 2016. Also, second hand property purchased by a first-time buyer between 1 January 2013 and 31 December 2013 will also be exempt from the LPT until the end of 2016.

2014 LPT returns were due for submission 7 November 2013 (paper filing) and 27 November 2013 (electronic filing) where there are changes to ownership at 1 November 2013. The valuation date for 2014 is 1 November 2013, and will remain valid for 2014, 2015 and 2016.

Household Charge / NPPR Levy

The Household Charge was abolished from 1 January 2013 and any outstanding Household Charge Payments for 2012 is collected with the LPT, with standard interest and penalties applying.

The annual NPPR (Non Principal Private Residence: holiday and buy-to-let properties)) Levy on applied for 2013 and the NPPR Levy will be abolished from 1 January 2014. Any outstanding NPPR Levy Payments as at 1 January 2014 will also be collected with the LPT.

Home Renovation Incentive (HRI)

Budget 2014 introduced a home renovation tax incentive scheme.

The Home Renovation Incentive will provide an Income Tax credit to homeowners who carry out renovation and improvement works.

The incentive is payable over the two years following the year in which the work is carried out.

The credit will be calculated at a rate of 13.5% on all qualifying expenditure over €5,000 up to a maximum of €30,000.

Qualifying works include extensions and renovations to the home, window-fitting, plumbing, tiling and plastering.

The relief will be linked to the Principal Private Residence of an individual and the contractor engaged must be tax compliant.

   
PRSI Return to top
 
 

Contribution
Rate

Earnings
Ceiling 2014 €

Earnings
Ceiling 2014 €

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)

No Ceiling

 

No Ceiling

 

Self Employed Contributions      
PRSI

   4%)

No Ceiling

No Ceiling
(1) 8.5% where weekly earnings are not more than €356
(2) For those earning over €352 per week or equivalent

With effect from 1 January 2013 –  Increase in the minimum annual PRSI contribution for self-employed earners from €253 to €500 (with effect from 1 January 2013);

- Abolition of exemption from income from a trade/profession for modified rate contributors.

PRSI is to apply to all income (whether earned or unearned) from 1 January 2014.

   
CORPORATION TAX Return to top
   
Standard Rate on Trading Income* 12.5%
Investment/Rental Income 25%
Manufacturing Rate 10% (only for established qualifying companies; ceased Dec 31 2011)
*Special rates apply to dealings in land  

Transfer Pricing

Legislation was passed in 2011 covering chargeable periods commencing on or after January 01, 2012. The regime does not apply to contracts or terms and conditions agreed before July 01, 2011. Any new arrangements or amendments to existing arrangements after this date will be within the scope of the new regulations.

Small and medium enterprises (broadly defined as enterprises with less than 250 employees and either a turnover of less than €50m or assets of less than €43m on a global consolidation basis) are excluded from the scope of this legislation.

The larger companies to whom transfer pricing will apply should maintain sufficient documentation to show compliance and must ensure that such documentation is made available on request.

Start-Up Companies
The corporation tax exemption for start-up companies, which may be availed of up to 2014, was amended by Budget 2013 to allow any unused relief from the first three years to be carried forward and used in subsequent years.

Start-up companies may avail of a relief from corporation tax for the first three years from commencing to trade. The value of the relief will be linked to the amount of  employer’s PRSI paid by a company in an accounting period subject to a maximum of €5,000 per employee. New start-up companies are will be exempt from tax including capital gains, in each of the first three years.

  • The company must be incorporated on or after 14 October 2008,

  • The company must commence to trade during 2011 or 2012,

  • The trade must be a new trade, and

  • Professional services companies cannot qualify for exemption.

Start Your Own Business (SYOB)
Budget 2014 introduces a new relief for those starting up unincorporated businesses. An exemption from Income Tax, up to a maximum of €40,000 per annum will be provided for a period of 2 years.

The exemption applies to individuals who have been unemployed for at least 15 months prior to starting their own business.

   
CAPITAL GAINS TAX Return to top
 
Per Individual  
   
Annual exemption €1,270
   
Rate 33%. (Effective for disposals made on or after 6 December 2012)
   

The payment date in respect of disposals in the period January to November is 15 December and the tax arising on disposals in the month of December is due by the following 31 January.

Entrepreneurial Relief

BDO chartered accountants says that Budget 2014 introduced a new Capital Gains Tax relief for those who re-invest in assets used in new productive trading activities.

Individuals who paid Capital Gains Tax, and re-invest in a new business in the period from 1 January 2014 to 31 December 2018, will qualify for Capital Gains Tax relief.

The relief is conditional on holding the new investment for a minimum period of three years.

Capital Gains Tax payable on a future disposal of the new asset will be reduced by the lower of:

  • Capital Gains Tax payable on a previous disposal of assets in the period from 1 January 2010, or
  • 50% of the Capital Gains Tax payable on disposal of the new asset.

This relief is subject to EU State Aid approval.

Retirement Relief - Transfer of Business and Farming Assets

BDO also said in respect of:

Intra Family Transfers

  • Full Retirement Relief from Capital Gains Tax for transfers intra-family for individuals aged 55 to 66.
  • A €3m upper limit will apply where the individual transferring the asset is over 66 years of age.
  • A transitional period, of two years, allowing the full unlimited relief will apply to individuals who are aged 66 or will attain that age before 31 December 2013.

Outside Family Transfers

  • The upper limit for transfers outside the family is €750,000 for individuals aged 55 to 66.
  • The upper limit for transfers outside the family is €500,000 for individuals aged over 66 years.
  • A transitional period, of two years, allowing the upper limit of €750,000 will apply to individuals who are aged 66 or will attain that age before 31 December 2013.

Budget 2014 further extends the relief to disposals of leased farmland to third parties.

Capital Gains Tax Exemption

Capital Gains Tax exemption is available on property bought between 7 December 2011 and 31 December 2013.  Budget 2014 extends this relief to 31 December 2014.

The property must be held for a period of at least seven years.

 DEVELOPMENT LAND  

All land rezoned in the future is subject to an 80% windfall tax rate as per the NAMA Act 2009. The tax applies where changes in zoning were made on or after 30 October 2009.

The special income tax rate of 20% applied to trading profits from dealing in or developing residential development land is discontinued for the 2009 year of assessment and subsequent years. The income arising will now be chargeable to income tax at the individual’s marginal rate of tax. Unless a claim for relief in respect of prior losses relating to dealing in or developing residential land has been made and received by the Revenue Commissioners prior to 7th April 2009, trading losses incurred prior to 2009 will generally only be relievable on a value basis up to a maximum of 20%.

Terminal losses in respect of dealing in or developing residential land will be ring-fenced.

CAPITAL ALLOWANCES Return to top
 

Capital allowances are no longer be available in respect of private hospitals and nursing homes.

  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

These allowances apply to expenditure incurred on or after 4 December 2002.

Accelerated capital allowances are available for certain energy efficient equipment acquired by a company. The allowance for such equipment is 100% of the cost of the asset.

In order for the equipment to qualify, it must be maintained on a list published by the Sustainable Energy Authority of Ireland.

A revised scheme of capital allowances and leasing expenses for cars used for business purposes has been introduced, under which the allowability of allowances and expenses is linked to the CO2 emission levels of the vehicles.

Intellectual Property Allowances - - see R&D section below.

In order for the equipment to qualify, it must be maintained on a list published by the
Sustainable Energy Authority of Ireland.

Motor Vehicles
Maximum allowable capital cost for new and second hand private cars purchased on or
after 1 January 2007 is €24,000.

In respect of motor vehicle purchases on or after 01 July 2008, the allowability of allowances
and expenses are linked to the CO2 emission levels of the vehicles. The vehicle emission
categories are as follows.

Vehicle category CO2 Emissions (CO2g/km)
A 0g/km up to and including 120g/km
B More than 120g/km up to and including 140g/km
C More than 140g/km up to and including 155g/km
D More than 155g/km up to and including 170g/km
E More than 170g/km up to and including 190g/km
F More than 190g/km up to and including 225g/km
G More than 225g/km

The qualifying cost for capital allowance purposes for each category is as follows. In each case,
the specific amount equals the lower of the purchase price of the car or €24,000.

(a) in the case of a vehicle in category A, B or C, an amount equal to the specified amount;
(b) in the case of a vehicle in category D or E, where the retail price of the vehicle at the
time it was made was:
(i) less than or equal to the specified amount, 50% of that price, and
(ii) greater than the specified amount, 50% of the specified amount, and
(c) in the case of a vehicle in category F or G, nil

RESEARCH & DEVELOPMENT CREDIT Return to top
 
Budget 2013 mace changes to the existing rules:  The first €200,000 of qualifying expenditure  benefits from the 25% credit without reference to the 2003 base year.

Budget 2014 makes changes to the existing regime:

  • Partial relief is available to companies for the cost of sub-contracting research and development work to unconnected parties. Budget 2014 increases the limit from 10% to 15% of total qualifying costs.
  • The first €300,000 of qualifying expenditure will benefit from the 25% credit without reference to the 2003 base year (€200,000 in 2013).

Intellectual Property Capital Allowances

Capital allowances are available in respect of capital expenditure incurred in relation to the acquisition/internal generation of intellectual property assets on or after 7 May 2009.

The tax deduction allowed is equal to the amount of accounting amortisation or impairment charged in the annual financial statements of a company. Alternatively, a company may elect to claim the tax deduction over 15 years (7% per annum and 2% in year 15). The 15-year period applies to all capital expenditure incurred on that asset and the election, if availed of, is irrevocable.

The definition of IP assets is broad and includes the acquisition of, or the licence to use:

  • patents and registered designs,
  • trademarks and brand names,
  • know-how,
  • secret processes, formulae or other secret information concerning commercial, industrial or scientific experience (effective from 4 February 2011),
  • domain names, copyrights, service marks and publishing titles,
  • authorisation to sell medicines, a product of any design, formula, process or invention (and any rights derived from research into same),
  • certain computer software and or right to use/deal with computer software (effective from 4 February 2011), and
  • goodwill, to the extent that it directly relates to the assets outlined above.

The tax deduction is only available for utilisation against trading income generated from the exploitation of the IP assets and is subject to certain other restrictions.

The minimum period of ownership of an intangible asset that a company must have in order to avoid a clawback of capital allowances on the disposal of said asset has been reduced from 15 years to 10 years.

Capital allowances are also available in respect of capital expenditure incurred on intangible assets prior to the commencement of a trade.

   
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.
30% also applies to individuals with limited earnings span e.g. athletes, entertainers.

There is cap of €115,000 for 2014 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.

The Standard Fund Threshold (SFT) is being reduced from €2.3 million to €2 million with effect from 1 January 2014.

Pension savings and entitlements valued between €2 million and €2.3 million, on 1 January 2014, can be protected at their value by applying to Revenue for a higher threshold, a Personal Fund Threshold (PFT).

Where the SFT, or PFT, is exceeded the excess is subject to an effective income tax rate of 65% (excluding any USC or PRSI).

The overall life-time limit on the amount of tax-free retirement lump sums that an individual can draw down from a pension remains at €200,000. The excess of this amount will be liable to income tax at the standard rate up to €575,000 (i.e. 25% of the SFT). Any further excess will be taxed at the individual’s marginal rate of income tax.

   
VAT Return to top
 
 
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

Provision of taxable services in Ireland (1)

 €37,500

The annual cash receipts basis threshold for small and medium enterprises is being
increased from €1.25m to €2m with effect from 1 May 2014.

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.

     
VAT rates:    

23.0%

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 1 March 2012, the rate of VAT that will apply to the supply of district heating will be reduced from the standard rate to the rate of 13.5%.

Heating fuel, electricity, restaurant services, newspapers, hotel and B&B lettings, property and Child Car Seats

9%   Hospitality Rate (hotel/holiday accommodations,
restaurants/catering services, entertainment
services, newspapers)

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.
Anti-Fraud Measures

Budget 2014 introduces the following Anti-Fraud measures:

(i) Disallowance of input VAT - Businesses which have not paid for supplies (in full or part) within a six month period will be required to repay the VAT claimed on those supplies.

(ii) Quick reaction mechanism – Allows Revenue to apply an emergency and temporary reverse-charge measure to certain goods or services to address sudden and massive VAT fraud.

(iii) Requirement to keep specific records – Provision is being made to allow Revenue to request specific information where they believe such information will assist in identifying VAT fraud.
   
GIFT/INHERITANCE TAX Return to top
 
  2014
2013
     
Threshold amount - - (effective for gifts and inheritances taken on or after 1 January 2011) Nil Nil
Excess

33% for gifts and inheritances

30% for gifts and inheritances

Thresholds    
Parents to child or minor child of a deceased child/Child to parent*  €225,000  €250,000
Blood relative €30,150  €33,208
Others  €15,075  €16,604
Business/agricultural relief – % reduction in taxable value     90%

* Subject to indexation factors.

 No gift/inheritance tax is payable between spouses.

Annual gift exemption €3,000 per individual. The base date for aggregation is 5 December 1991.

New and pay and file arrangements have been introduced for gift/inheritance tax as and from 14 June 2011.

All gifts/inheritances with a valuation date in the 12 month period ending on 31 August will be included in the return to be filed by the following pay and file deadline of 31 October.

New electronic return (IT38) available through ROS and can be used for all tax years from 2001.

It is mandatory to file online where the valuation date is on or after 14 June 2011 unless certain criteria met.

 
CAPITAL DUTY                                                                      (with effect from 2/12/2004 0.5%
 
STAMP DUTY Return to top

A Stamp Duty “trade-in” scheme has been introduced. Under this scheme no stamp duty is payable by a person who accepts a traded-in property in exchange or part exchange for a new house/apartment. Stamp Duty will apply when the person subsequently sells on the ‘swapped’/traded-in house.

       
Main Rates     %
       
Stocks & Shares     1(1)
       
Transfer/purchase of private residential property:
Up to €1,000,000
    1
Any excess over €1,000,000     2
       
Transfer/purchase of non-residential property     2
 (1) Transfer of shares listed on Enterprise Securities Market of Irish Stock Exchange will be exempt, subject to commencement order.  

Life Assurance Policies

A levy on life assurance was introduced in 2009, at the rate of 1% on premiums. This new levy will apply to premiums received by an insurer on or after 1 June 2009.

Non-Life Insurance Policies

The current non-life insurance levy of 2% was increased by 1%. The new rate of 3% has applied to renewals and offers of insurance issued by an insurer on and from midnight on 7 April 2009 where premiums are received by the insurer on or after 1 June 2009.

Change of Relevant Contracts Tax

The current RCT system was replaced in 2013 with a two-rate withholding system on a revenue neutral basis based on a:

  • 20% rate for subcontractors registered for tax with an established compliance record;

  • 35% rate for subcontractors not registered for tax;

The monthly repayment system will be abolished and will be replaced with an offset system. There will also be a strengthening of the reporting system for RCT Principals in order to enhance compliance and reduce the opportunities for fraud.

DEADLINES Return to top
 
Income Tax

Preliminary Income Tax Payment for 2014 31 October 2014

Balance of tax due for 2013 31 October 2014

File Personal Tax Return for 2013 31 October 2014

Note – A Pay & File Extension may be available for those that pay and file through the Revenue Online Service (ROS) Website.

Capital Gains Tax

Payment Dates

Disposals made between 1 December 2013 & 31 December 2013 31 January 2014

Disposals made between 1 January 2014 & 30 November 2014 15 December 2014

Disposals made between 1 December 2014 & 31 December 2014 31 January 2015

Returns

Individuals – 2013 Disposals 31 October 2014

2014 Disposals 31 October 2015

Corporation Tax

Company Tax Payments

Small Companies

1. Choice of 90% of current year liability or 100% of previous year’s liability due one month before year end (but no later than the 21st day of that month);

2. Balance of tax to be paid on date the Corporation Tax Return is due.

A small company is a company with a corporation tax liability of less that €200,000 in the preceding year.

Other Companies

1. Choice of 45% of current year liability or 50% of previous year liability due in sixth month of accounting period (but no later than the 21st day of that month);

2. Payment bringing total preliminary tax up to a minimum of 90% of current year liability due one month before year end (but no later than the 21st day of that month);

3. Balance of tax to be paid on date the Corporation Tax Return is due.

Company Tax Returns

Within nine months of the end of the accounting period but no later than the 21st day of that month.

Note - Where tax payments and filings of returns are completed through ROS, the deadlines are extended to the 23rd of each month.

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