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Taxes in Ireland

If you want to live and work in Ireland then taxes are inevitable. There are a few differences when compared to the UK system so the Irish tax system can get a little bit complicated so below you can find a detailed description of how it works so you can understand taxes in Ireland a bit better!

Taxes in Ireland

To register for tax in Ireland you need to apply initially at any Social Welfare Local Office or Social Welfare Branch Office for a Personal Public Service (PPS) number. After receiving this number by post you should provide it to your employer and complete Form 12A which is obtainable from the Revenue office. On receipt of the completed form the Revenue office will send a Notice of Determination of Tax Credits and Standard Rate Cut-Off Point to both you and your employer, so that the appropriate deductions of tax can be made from your salary.

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Income Tax

When it comes to working abroad taxes are compulsory. If you spend more than 183 days in Ireland or earn your primary income there then you must pay tax to the Irish authorities. The tax system is on a pay as you earn PAYE system whereby you are taxed a a certain percentage based on what you earn. In the UK tax is based primarily on income whereas in Ireland tax is based primarily on your marital status.

RateTaxable earned income €Category
20%0 – €33,800People without dependent children
20%0 – €37,800Single or widowed people
20%0 – €42,800Married Couples
40%Earned income remainderAll categories

As you can see income tax in Ireland doesn’t have as many progressive steps as in the UK and there is only one progression based on income, the rest are due to changes in marital and family status.

Prepare for Ireland’s work culture and tax system. Read more below!

Corporation Tax

Ireland has the reputation in the business world where they offer a very competitive corporation tax rate. This has attracted 9 out of the worlds top 10 leading technology companies to have their European headquarters in Ireland. In recent years Ireland has been offering a corporate tax rate of 10%. However this is being phased out now, apart from a handful of large multinational corporations who still pay this. The current rate of corporation tax is 12.5%.

VAT

The standard rate of VAT in Ireland is is 23% which applies to almost all goods and services. There are other rates that exist such as:

  • the low rate (13.5%) – applies to certain goods and services such as food and drink, houses, pharmaceutical products, etc
  • the agriculture rate (4.8%) – applies to the sale of agricultural items
  • the zero rate (0%)

Taxes in Ireland

Tax Returns in Ireland

The tax year runs the same as the calendar year. Fortunately, it is not necessary for everyone to file a tax return in Ireland. You only need to fill in a tax return for the following reasons:

  • You’re self-employed
  • You’re a contractor or sub-contractor
  • You’re a landlord
  • You receive income in addition to PAYE income
  • You’re director of a company
  • You belong to an employee share scheme

The deadline for filling in a tax return is 31 October.

Taxes in Ireland are a necessary part of working there. To find out more information about working in Ireland find the Sirelo page here.