Dublin

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Taxation

Key details on personal taxes, tax identification numbers (PPSN), and related services for residents.

Sections

1. Income Tax

Income tax is the primary tax on earnings in Ireland. It applies to income from employment, self-employment, pensions, rental income, and other sources.

Income Tax Rates (2023)

Ireland uses a progressive tax system with two main tax bands:

  • 20% (Standard Rate): Applied to income up to โ‚ฌ40,000 (for single individuals).
  • 40% (Higher Rate): Applied to income above โ‚ฌ40,000.

Note: The income thresholds vary depending on your marital status and whether you are a single earner, married couple, or civil partner.

Universal Social Charge (USC)

In addition to income tax, the USC is applied to gross income (before deductions). The rates for 2023 are:

  • 0.5% on income up to โ‚ฌ12,012.
  • 2% on income from โ‚ฌ12,013 to โ‚ฌ22,920.
  • 4.5% on income from โ‚ฌ22,921 to โ‚ฌ70,044.
  • 8% on income above โ‚ฌ70,044.

Pay Related Social Insurance (PRSI)

PRSI is a social insurance contribution that funds benefits like pensions and unemployment support. The rate is typically 4% of your income.

Tax Credits

Tax credits reduce the amount of tax you owe. Common credits include:

  • Personal Tax Credit: โ‚ฌ1,775 (single individuals).
  • Employee Tax Credit: โ‚ฌ1,775 (for PAYE workers).
  • Additional credits may apply for married couples, single parents, or those with dependents.

How to Register for Income Tax

  1. Get a Personal Public Service (PPS) Number: This is a unique identifier for accessing public services, including tax. You can apply for a PPS number at your local Intreo Centre or online.
  2. Register with Revenue: Use the myAccount portal on the Revenue website to register for income tax. If you are self-employed, youโ€™ll need to register for self-assessment via the ROS (Revenue Online Service).

Payment and Deadlines

  • PAYE (Pay As You Earn): If you are an employee, your employer deducts income tax, USC, and PRSI directly from your salary.
  • Self-Employed: File an annual tax return through ROS. The deadline for filing and paying taxes is typically 31 October of the following year (or mid-November if filing online).

2. Value-Added Tax (VAT)

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

VAT Rates (2023)

  • 23% (Standard Rate): Most goods and services.
  • 13.5% (Reduced Rate): Hospitality, tourism, and construction services.
  • 9% (Special Rate): Newspapers, eBooks, and some tourism-related services.
  • 0% (Zero Rate): Basic food items, childrenโ€™s clothing, and medicines.

Who Pays VAT?

  • Consumers pay VAT as part of the price of goods and services.
  • Businesses must register for VAT if their annual turnover exceeds โ‚ฌ37,500 (services) or โ‚ฌ75,000 (goods).

How to Register for VAT

Businesses can register for VAT through the ROS system. Youโ€™ll need your PPS number or Tax Reference Number.

Payment and Deadlines

VAT returns are typically filed every two months. Deadlines are the 19th of the month following the end of the VAT period.

3. Local Property Tax (LPT)

The LPT is an annual tax on residential properties in Ireland.

LPT Rates

The tax is based on the market value of your property. Rates vary depending on the valuation band, with most properties in Dublin falling into the โ‚ฌ200โ€“โ‚ฌ500 range annually.

How to Register and Pay

  1. Register Your Property: Use the LPT portal on the Revenue website.
  2. Payment Options: Pay in full or in installments via direct debit, credit/debit card, or deduction from your salary.

Deadlines

The LPT is due annually, with payment typically required by 10 January of the tax year.

4. Capital Gains Tax (CGT)

CGT applies to profits from the sale of assets, such as property or shares.

CGT Rate

  • The standard rate is 33%.

Exemptions

  • The first โ‚ฌ1,270 of gains in a tax year is exempt.
  • Gains from the sale of your primary residence are usually exempt.

Deadlines

  • CGT is paid in two installments: 15 December (for gains made between 1 January and 30 November) and 31 January (for gains made in December).

5. Stamp Duty

Stamp duty is a tax on certain legal documents, primarily related to property transactions.

Rates

  • Residential Property: 1% on the first โ‚ฌ1 million, 2% on amounts above โ‚ฌ1 million.
  • Non-Residential Property: 7.5%.

Payment

Stamp duty is paid when the property transaction is completed, typically by your solicitor.

6. Other Taxes

  • Excise Duty: Applied to alcohol, tobacco, and fuel.
  • Motor Tax: An annual tax for vehicle owners, based on CO2 emissions or engine size.
  • Carbon Tax: Applied to fossil fuels like coal, peat, and gas.

How to Stay Compliant

  1. Use Revenueโ€™s Online Services: The myAccount and ROS portals are essential for managing your taxes.
  2. Keep Records: Maintain receipts, invoices, and other documentation for at least six years.
  3. Seek Professional Advice: If youโ€™re unsure about your tax obligations, consult a tax advisor or accountant.

Local Considerations for Dublin

  • Cost of Living: Dublin has a high cost of living, so understanding your tax obligations can help you budget effectively.
  • Public Services: Taxes fund Irelandโ€™s excellent public services, including healthcare, education, and public transport.
  • Tax Reliefs: Ireland offers various tax reliefs, such as for medical expenses, tuition fees, and home renovations. Check the Revenue website for details.

Helpful Resources

  • Revenue Website: www.revenue.ie
  • myAccount Portal: For employees and individuals.
  • ROS (Revenue Online Service): For self-employed individuals and businesses.
  • Citizens Information: www.citizensinformation.ie โ€“ A helpful resource for understanding taxes and public services.
  • Local Tax Advisors: Many firms in Dublin specialize in helping newcomers navigate the tax system.

By understanding the Irish tax system and staying compliant, you can avoid penalties and make the most of the benefits available to you as a resident of Dublin. Let me know if you need further assistance!