Immediate Effect Where a married couple were taxed jointly and the deceased person was not the assessed person, the assessed survivor is taxed on their income for the full year and the spouse’s income up to the date of death. The survivor gets the married person’s tax credit and standard rate band for the whole year. If the couple were assessed jointly and the deceased […]
Residence of Trustees If the trust is Irish resident, the trustees are liable to Irish income tax on the worldwide income of the trust. If the trust is not Irish resident, then it is liable for income tax in accordance with the general rules for non-residents. For capital gains tax, the trustees are considered a body of persons and are deemed Irish resident and ordinarily […]
Preliminary Tax The taxpayer must pay preliminary tax for the current year together with the return of tax and balance for the previous year and making the tax return. Preliminary tax (including income tax PRSI and USC) must be paid on account payment during the current year for the current year liability. Because the final tax liability , will not be known, the taxpayer may avoid […]
Self Assessment Unless income is wholly dealt with through PAYE (deduction by employer) a tax payer must self-assessed his tax liability and pay preliminary tax, file a return and pay final tax with it. Any balance of tax that is not covered by deduction at source, must be paid. Before 31st October in each year (extended by two weeks for ROS filers; almost all taxpayers), […]
Blind person A person who is Blind is entitled to an additional tax credit of €1650. There is an additional relief expenses incurred in relation to a trained guide dog A tax credit is available to a person who is blind, or whose spouse is blind, during part or whole of the year. This is doubled if both spouses are blind. Blind is defined technically. […]
Tax Deducted by Third Parties Credit is allowed for tax deducted at source by third-party. The principal example is in the case of PAYE payments by employers. Indeed, the objective of the PAYE system is to tax the employee’s income by deduction. An employee will generally not have to make a return, if all of his income is dealt with under PAYE. See our chapters […]
Taxable Income Irish income tax rules calculate taxable income for each of the various categories of income. There are distinct rules for each category of income. Trading income, employment income, dividend income, rental income and other minor categories of income have their own rules in relation to what is or is not included in the calculation, what is deductible and how allowances, losses and charges […]
Medical Expenses Relief is available at the standard rate on medical/health expenses. Nursing home expenses qualify for relief at the marginal rate. The person who incurs the expenses may claim the relief. Relief is not available where the expense is covered by health insurance or another sources. Revenue published detailed guidelines as to what expenses are or are not allowed. Qualifying health expenses, include expenses […]
Heritage item There is a relief for the donation of a heritage item. This is a cultural item, including an archaeological item, archive, a state record, manuscript, collection, or cultural items. It must be determined that the item concerned is an outstanding example of the type involved, preeminent in its class and suitable for acquisition by an approved body such that its export outside the […]
Charges Charges are sums which are paid by a taxpayer by way of legal obligation. In many cases, the person paying the charge has to withhold tax at the standard rate and pay it to the Revenue. Where this occurs, the recipients obtains a credit for the sum paid to Revenue. Covenants of Income A Deed of covenant (in this context) is a legally binding […]
Charities There are a range of exemptions from income tax which exist because of various social, economic and other policies. Some exist for historical reasons. Charities are exempted from tax on most income. The exemption is available to the extent that the income is applied for charitable purposes. Where the income derives from a trade carried out by the charity, the exemption is available if […]
Social Protection Payments Many social welfare benefits are not taxable, including jobseekers assistance; child benefit bereavement grant disability allowance; family income supplement; and maternity benefits. Jobseekers benefit and disability benefit are taxable, subject to certain exemption within limits. Short term jobseekers benefit is exempt. The benefit is short-term where the number of days worked is less than the number of days in the normal working […]
Separation A husband and wife, who are not living together are not as taxed jointly if they are separated and divorced or separated in circumstances in which the separation is likely to be permanent. The reason for living apart, such as living with a new partner, may be relevant to showing separation. It is possible for persons to be separated while living in the same house. […]
Assessment Possibilities The three options for assessment of married couples and civil partners are single treatment; assessment under which each is assessed as a single person; joint assessment; where they are assessed jointly generally in the name of one on behalf of both, and separate assessment where spouses are assessed separately, but unused tax credits and standard rate allowance are transferable and may be claimed […]