Drogheda

1. Overview of Taxes in Ireland

Ireland’s tax system includes several types of taxes that apply to individuals and businesses. These include:

• Income Tax (PAYE and Self-Employed)
• Universal Social Charge (USC)
• Pay-Related Social Insurance (PRSI)
• Value-Added Tax (VAT)
• Local Property Tax (LPT)
• Capital Gains Tax (CGT)
• Capital Acquisitions Tax (CAT)
• Stamp Duty
• Motor Tax

Below is a breakdown of the most relevant taxes for individuals living or working in Drogheda.

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2. Income Tax

Income tax is the primary tax on earnings in Ireland. It applies to all income earned by residents and non-residents working in Ireland.

Rates for 2023:

• Standard Rate (20%): Applies to income up to €40,000 for single individuals (higher thresholds for married couples or single parents).
• Higher Rate (40%): Applies to income above the standard rate threshold.

How to Pay:

• PAYE (Pay As You Earn): If you are an employee, your employer deducts income tax, USC, and PRSI directly from your salary and pays it to Revenue.
• Self-Employed: If you are self-employed, you must file an annual tax return through the Revenue Online Service (ROS) and pay your taxes directly.

Local Considerations in Drogheda:

• Drogheda residents typically work in the town or commute to Dublin. If you commute, ensure your employer has your correct tax credits and standard rate cut-off point to avoid overpaying taxes.
• If you are new to Ireland, you must register for a Personal Public Service (PPS) Number to pay taxes. This can be done at the Drogheda Intreo Centre (see contact details below).

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3. Universal Social Charge (USC)

The USC is a tax on gross income, with rates depending on your earnings.

Rates for 2023:

• 0.5% on income up to €12,012
• 2% on income from €12,013 to €22,920
• 4.5% on income from €22,921 to €70,044
• 8% on income above €70,044

Exemptions:

• If your total income is less than €13,000 per year, you are exempt from USC.

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4. Pay-Related Social Insurance (PRSI)

PRSI is a contribution towards social welfare benefits, such as pensions, unemployment benefits, and maternity leave.

Rates:

• Employees: 4% of gross income.
• Self-Employed: 4% of gross income, with a minimum annual contribution of €500.

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5. Local Property Tax (LPT)

If you own a property in Drogheda, you must pay the Local Property Tax. The amount is based on the market value of your property.

Rates:

• The LPT is calculated as a percentage of your property’s value. For 2023, the standard rate is 0.1029% of the property value, but local authorities can adjust this by up to 15%.
• Drogheda falls under Louth County Council, which sets the LPT rate for the area.

How to Pay:

• Payments can be made online through the Revenue website, via direct debit, or in installments.

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6. Value-Added Tax (VAT)

VAT is a consumption tax applied to goods and services in Ireland.

Rates:

• Standard Rate: 23%
• Reduced Rates: 13.5% (e.g., for utilities, restaurants) and 9% (e.g., for tourism-related services).

For Visitors:

• Non-EU visitors can claim VAT refunds on certain goods purchased in Ireland when leaving the EU. Ensure you keep your receipts and use the VAT refund scheme at the airport.

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7. Capital Gains Tax (CGT)

CGT applies to profits made from selling assets, such as property or shares.

Rate:

• 33% on gains above the annual exemption of €1,270.

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8. Capital Acquisitions Tax (CAT)

CAT applies to gifts or inheritances received.

Rate:

• 33% on amounts above the tax-free threshold, which depends on your relationship to the giver.

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9. Stamp Duty

Stamp duty is a tax on property purchases and certain legal documents.

Rates:

• Residential Property: 1% on the first €1 million, 2% on amounts above €1 million.
• Non-Residential Property: 7.5%.

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10. Motor Tax

If you own a vehicle in Drogheda, you must pay motor tax, which is based on the car’s CO2 emissions or engine size.

How to Pay:

• Payments can be made online at www.motortax.ie or at the Louth County Council Motor Tax Office.

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11. How to Pay Taxes in Drogheda

All taxes in Ireland are managed by the Revenue Commissioners. You can pay taxes and manage your tax affairs through the Revenue Online Service (ROS).

Steps to Register for Taxes:

1. Obtain a PPS Number: This is your unique identifier for tax and social welfare purposes. You can apply for a PPS Number at the Drogheda Intreo Centre.
2. Register with Revenue: Use your PPS Number to create an account on the Revenue website (www.revenue.ie).
3. File Tax Returns: If you are self-employed or have additional income, you must file an annual tax return through ROS.

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12. Local Offices and Resources in Drogheda

Here are some key offices and resources for managing taxes in Drogheda:

Drogheda Intreo Centre

• Address: North Quay, Drogheda, Co. Louth
• Services: PPS Number applications, social welfare services.
• Phone: +353 41 987 8700

Revenue Commissioners

• Website: www.revenue.ie
• Phone: +353 1 738 3636 (for PAYE queries) or +353 1 738 3663 (for self-employed queries).
• Local Office: The nearest Revenue office is in Dundalk, Co. Louth.

Louth County Council

• Website: www.louthcoco.ie
• Phone: +353 42 933 5457
• Services: Local Property Tax, motor tax, and other local services.

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13. Specific Considerations for Immigrants and Visitors

• Immigrants: If you are new to Ireland, ensure you register for a PPS Number and update your tax credits with Revenue to avoid overpaying taxes.
• Visitors: Short-term visitors are generally not subject to Irish taxes unless they earn income in Ireland.
• Cross-Border Workers: Drogheda is close to the Northern Ireland border. If you work in Northern Ireland but live in Drogheda, you may be subject to special tax rules under the Double Taxation Agreement between Ireland and the UK.

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14. Tips for Managing Taxes in Drogheda

• Use the Revenue Online Service (ROS) for all tax-related matters.
• Keep records of your income, expenses, and receipts for at least six years.
• Consult a local tax advisor or accountant if you have complex tax affairs, such as rental income or cross-border employment.

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If you need further assistance or have specific questions, feel free to ask!