Tax system in Dublin


Income Tax levels in Ireland are amongst the lowest in the world. Tax on income is deducted directly from your salary. This is known as Pay As You Earn (PAYE). The amount of tax that you must pay depends on the amount of the income that you earn and on your personal circumstances.

  • The first part of your income, up to a certain amount, is taxed at 20% as the standard rate of tax. The amount that it applies to is known as the standard rate tax band.
  • The remainder of your income is taxed at the higher rate of tax, 41%.

You can contact the Irish Revenue to get more details about you tax in your salary. If you want to use a tax calculator, have a look on Irish PAYE Tax Calculator.

Individual Taxes in Ireland

As a self-employed person, you pay income tax under the self-assessment system, once a year. Self-assessment means that you are responsible for making your own assessment of tax due.

You pay Preliminary Tax (an estimate of tax due for your current trading year) on or before 31 October each year, and make a tax return for the previous year not later than 31 October. For example, if your accounting year is from 1 January to 31 December each year, you pay Preliminary Tax for 2017 by 31 October 2017, based on an estimate of your liability for the full year. At the same time, you make a tax return for 2016 and pay any taxes outstanding for that year. If you file your tax return online using the Revenue Online Service (ROS), you may be able to file your return slightly later.

You must keep proper records, which include:

  • All purchases and sales of goods and services and
  • All amounts received and all amounts paid out

You must also keep supporting records of invoices, bank and building society statements, cheque stubs and receipts for your personal records. You can also claim certain business expenses against tax, such as purchase of goods for re-sale, wages, rent, rates, repairs, lighting and heating, running costs of vehicles or machinery used in the business, accountancy fees, interest paid on business loans, leasing payments on vehicles or machinery used in the business. As well as contributions to your personal pension (up to certain limits). Moreover, if you are working from home you may be able to claim a proportion of household bills such as telephone, heating, lighting etc.

You can find more information on self-employment in revenue's guide to self-assessment, which includes information how to fill in your tax return and important deadlines.

VAT in Ireland

Value Added Tax (VAT) is a tax charged on the sale of goods or services and is included in the price of most products and services that we use every day. VAT is charged at different rates for various goods and services. You can get an extensive list of VAT ratings from the Revenue Commissioners.

  • 23% is the standard rate of VAT and all goods and services that do not fall into the reduced rate categories are charged at this rate. They include alcohol, audio-visual equipment, car parts and accessories, CDs, computers, consultancy services, cosmetics, detergents, diesel, fridges, furniture and furnishings, hardware, jewellery, lawnmowers, machinery, medicines (non-oral), office equipment, pet food, petrol, paper, tobacco, toys, tools, washing machines and bottled water.
  • 13.5% is a reduced rate of VAT for items including fuel (coal, heating oil, gas), electricity, veterinary fees, building and building services, agricultural contracting services, short-term car hire, cleaning, and maintenance services.
  • 9% is a special reduced rate of VAT for tourism-related activities including restaurants, hotels, cinemas, hairdressing, and newspapers.
  • 4.8% is a reduced rate of VAT specifically for agriculture. It applies to livestock (excluding chickens), greyhounds and the hire of horses.
  • 0% (Zero) VAT rating includes all exports, tea, coffee, milk, bread, books, children's clothes and shoes, oral medicine for humans and animals, vegetable seeds and fruit trees, fertilisers, large animal feed, disability aids such as wheelchairs, crutches, and hearing aids.

PRSI (Pay Related Social Insurance)

As soon as you get your PPS number and you find a job, you will be able to benefit from the Irish social and pension system, by paying a tax named PRSI.

The social insurance payments include:

  • Jobseeker's Benefit
  • Illness Benefit
  • Maternity Benefit
  • Adoptive Benefit
  • Health and Safety Benefit
  • Invalidity Pension
  • Widow's/Widower's Contributory Pension
  • State Pension
  • Carer's Benefit

All details are available on the "at work" section on EasyExpat.

Update 14/10/2017


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