General Broad Exemptions from USC Income Threshold: Where an individual’s total income for a year does not exceed €13,000. The USC exemption threshold is €13,000 for the years 2016 to 2022, €12,012 for 2015 and €10,036 for the years 2012 to 2014. All Department of Social Protection payments Similar Type Payments Payments that are made in lieu of Department of Social Protection payments such as […]
Losses Losses, other than those arising from the carrying on of a trade or profession, are not deductible before USC is charged. Trading losses arising in a tax year cannot reduce other non-trading income in that year for the purposes of USC. Where unused trading losses are carried forward, only that part of the losses that is actually used to reduce taxable income from the […]
Introduction Finance Act 2011 introduced the universal social charge in lieu of the income levy and health levy. The USC is, broadly speaking, a flat rate tax payable on almost all income. The universal social charge was introduced as a means of raising revenue quickly. It replaced the pre-existing income levy, introduced earlier in the financial crisis. Income levies had been introduced in the past […]
Bank Bonuses Universal social charge has been used as a mechanism for recovery of so-called excess bank remuneration and bonuses. The 45 percent rate applies to bank bonuses of certain employees of banks and financial institutions. A special rate of 45 percent applies to so-called excess bank remuneration. The provision applies to employees of institutions specified in the Credit Institutions (Financial Support) Act in receipt […]
Former Levies to Fund The National Training Fund Act, 2000 provided for the repeal of previous levies on employers under the Industrial Training Acts. The legislation repealed the Industrial Training Act and the Industrial Apprenticeship Levy Acts 1967 and 1994. The 2000 Act established a National Training Fund and provided for a new associate levy. The Fund finances a range of schemes aimed at raising […]
Health Levy The Universal Social Charge (USC) replaced both the income levy and the health levy (health contribution) on 1 January 2011. The Health levy is applied to reckonable earnings, reckonable emoluments, and reckonable income. Reckonable emoluments mean employment income. Reckonable earnings are income from employment. Since 2004, non-pecuniary income, such as benefits and kinds, are included. Contributions to pension schemes are deducted. No expenses […]