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Irish
Income Tax Rates and Credits for 2009 and 2010
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Current
Income Tax Rates (Euro)
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Status
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Tax Bands for 2009
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Tax Bands for 2010
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Single
/ Widowed (without dependent children)
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36,400
@ 20%
Balance
@41%
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36,400
@ 20%
Balance
@ 41%
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Single
/ Widowed(with dependent children)
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40,400
@ 20%
Balance@41%
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40,400
@ 20%
Balance
@ 41%
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Married
Couple (one spouse with income)
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45,400
@ 20%
Balance
@41%
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45,400
@ 20%
Balance
@ 41%
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Married
Couple (both spouses with income)
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45,400
@ 20% with increase of 27,400 max.
Balance
@41%
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45,400
@ 20% with increase of 27,400 max.
Balance
@ 41%
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Taxpayers
with low levels of taxable income may be exempt from tax altogether or
may be able to avail of marginal relief. The thresholds are as
follows:
Income
levy
Income
levies were introduced in the 2008 budget with effect from 1 January
2009
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Annual equivalent payments
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From 1/1/09 to 30/4/09
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Annual equivalent payments
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From 1/5/09 forward
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Up
to €100,100
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1%
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Up
to €75,036
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2%
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Between
€100,101 and €250,120
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2%
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Between
€75,037 and €174,980
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4%
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In
excess of €250,120
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3%
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In
excess of €174,980
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6%
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65
or over
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34,000
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38,000
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40,000
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Self
assessed individuals are taxed at a composite rate
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Self
assessed individuals - 2009
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Rate
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Self
assessed individuals - 2010
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Rate
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First
€75,036
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1.67%
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Up
to €75,036
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2%
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Next
€25,064
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3%
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Between
€75,037 and €174,980
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4%
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Next
€74,880
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3.33%
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In
excess of €174,980
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6%
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Next
€75,140
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4.67%
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The
remainder
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5%
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Main
Personal Tax Credits
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Tax Credit
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2009
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2010
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Single
Person
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1,830
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1,830
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Married
Person
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3,660
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3,660
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Additional
Widowed Person credit
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600
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600
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Widowed
Parent (in Yr 1 decreasing by 500 per year to Yr 5)
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4,000
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4,000
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One
Parent Family
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1,830
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1,830
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Age
Tax Credit (65 years plus & Single / Widowed)
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325
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325
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Age
Tax Credit (65 years plus & Married)
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650
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650
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Home Carer Credit
(max)
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900
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900
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Incapacitated
Child (max)
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3,660
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3,660
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Dependent
Relative (max)
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80
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80
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Employee Tax
Credit
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1,830
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1,830
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Residency
rules
If
you are present in Ireland for a total of 183 days in a tax
(calendar) year or a total of 280 days over this calendar year and
the preceding calendar year, you are tax resident in Ireland. You
will not be resident if you spend 30 days or less in Ireland in the
tax year (this overrides the 280 day rule). From 2009 onwards
spending any part of a day in Ireland counts towards the total days
(prior to 2009 a day was counted if you were in the state at
midnight)
The
general rule is that you are taxed on your worldwide income if you
are tax resident in Ireland.
Your
are ‘Ordinarily Resident’ in Ireland if you have been resident for
the previous three tax years and will cease to be ordinarily resident
after three continuous years of non-residence. Taxpayers who are
ordinarily resident are taxed on their worldwide income except for
income from a trade or profession, no part of which is carried on in
Ireland or an office or employment where all the duties apart from
‘incidental duties’ are performed outside Ireland or income from
other sources that does not exceed €3,810.
There
are reliefs for persons coming to or leaving Ireland (Split year
residence relief) and relief for taxpayers who habitually travel to a
double taxation country (e.g. the UK) for employment.
You
are ‘Domiciled’ in Ireland if you consider Ireland to be your natural
home. The determination of domicile is a matter of international law
and is therefore not readily determined in the manner that residency
or ordinary residence is determined. You acquire a domicile of origin
at birth which is normally that of your father but can acquire a
domicile of choice which would normally involve positive steps such
as changing citizenship, disposing of property in the domicile of
origin country etc.
When
an individual is resident but not domiciled in Ireland he or she is
only taxed on worldwide income that is remitted to Ireland. A
remittance would include purchasing goods with offshore income and
transporting those goods to Ireland. As a general rule the remittance
basis does not apply in respect of income from an office or
employment when the duties of that office or employment are performed
in Ireland. There is some limited relief to this rule however when
certain conditions are met.
A
‘Domicile levy’ of €200,000 per annum has been introduced from 2010
on individuals who are domiciled in Ireland and are citizens of
Ireland, have worldwide income exceeding €1million, pay less than
€200,000 Irish tax and own Irish property with a market value
exceeding €5million on 31 December of the tax year.
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