Irish Tax Laws and Regulations

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Irish Tax Laws

Dealing with tax, payroll, and employment regulations for your staff from overseas is a tricky process. It poses major issues for companies seeking to develop their international profile. Ireland is no exception, with the Revenue Commissioners imposing fines and other sanctions for late or fraudulent returns and not paying taxes on time.

We have made it our goal to keep track of the latest changes in the tax policies to always ensure complete compliance. To keep you informed and updated too, we created this guide which includes the basic facts regarding tax regulations in Ireland. 

Overview of Taxes in Ireland

  • Individual Income Tax – 20% – 40% (Plus, surcharges for Universal Social Charge, USC)
  • Value Added Tax – 23% (standard rate), (Rates of 13.5%, 9% and 4.8% for some categories)
  • Corporate Income Tax – 12.5% (standard rate), 25% (non-trading income)
  • Withholding Tax – 20% (Applies to resident individuals, non-resident individuals and companies)
  • Wage Withholding Taxes – (Deductions for Payment Related Social Insurance and USC depend on earnings)
  • Local Property Tax – (Has applied since 2013, depends on value)

Ireland Individual Tax – Single, Married

Ireland residents are taxed on all their worldwide income, from whatever source. Tax residency in Ireland applies if an individual is a resident or domiciled in Ireland for 183 days in a tax year or 280 days in the current and previous tax year, with a minimum of 30 days in each.

Residents who are not domiciled in Ireland are liable for taxes on their Irish-sourced income, foreign income from working in Ireland and other foreign income paid into Ireland. Non-residents are taxable only on Irish-earned income.

Income Tax Rates

  • 0 – €35,300 (US$42,000) – 20% (Single or widowed person, no dependent children)
  • €35,301 €44,300 (US$52,700) – 20%, and a balance over 40% (Married couple, one income)
  • €44,301 €70,600 (US$84,000) – 20%, and a balance over 40% (Married couple, two incomes of at least €26,300 (US$31,290)

Taxpayers in Ireland are also entitled to tax credits to reduce their tax liability. These can vary according to personal circumstances, as shown below:

  • €1,650 (US$1,963) – Employee tax credit (formerly PAYE tax credit)
  • €1,650 (US$1,963) – Earned income tax credit
  • €1,650 (US$1,963) – For a widowed person or surviving civil partner qualifying for single person child carer credit
  • €2,190 (US$2,605) – For a widowed person or surviving civil partner (without dependent children)