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Income tax in Ireland

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If you work in Ireland as an employee, you will be on the Pay as you earn, or PAYE, tax system. In this case the tax you owe on your income is automatically deducted from your pay cheque. If you are self-employed – which is only allowed for foreign nationals that are EU-EEA or Swiss nationals, or those with an entrepreneurial work permit – you will have to do a self-assessment of your tax and calculate and deduct your own taxes online at the Irish Tax and Customs website.

Starting work

In order for your employer to take the correct tax out of your pay cheque, you will need a Personal Public Service (PPS) number and a completed tax credit certificate. As soon as you have received a job offer, you can apply for a PPS number at a PPS number centre with a proof of identity and proof of address. A passport or EU national identity card are acceptable forms of ID, and a utility bill, bank statement, official letter, or tenancy agreement will verify your address. If you are staying with friends or relatives, you can take a proof of address from your host with a note verifying that you are living there. Once you have the number, you can create an account on the Revenue online services website and register the details of your new job. Once you are registered, your employer will be sent a tax credits certificate to tell them which tax credits to deduct from your tax bill. You can review and amend your tax credits online in your account.

Make sure you do these things in advance of starting your job, ideally as soon as you’ve received an offer, so that there is enough time for them to take effect before your first pay period. If you fail to complete either of these tasks, you may be put on an emergency tax rate, which is typically much higher than you should owe.

Tax return

At the end of the fiscal year, you only have to complete a self-assessment, or tax return, if you are self-employed or have additional income to declare (capital gains, rental income, etc.). You may also need to file if you feel you have paid too much or too little tax.

Tax rates

2016/2017 Ireland income tax rates are as follows:

Single person: 20% up to €33,800. 40% above €33,800.

Married couple or partners with one income: 20% up to €42,800. 40% €42,800.

Married couple or partners with two incomes: 20% up to €67,700 and €24,800 OR the second incone amount (whichever is lovwer). 40% on anything above the aforementioned total.

Single parent household: 20% up to €37,800. 40% above €37,800.

You will not necessarily pay the full amount of tax, however. Your tax credit certificate will give you certain allowances depending on your circumstances that may let you keep some of that tax, which is why it is in your interest to fill it in correctly. You will also have to pay social insurance (PRSI) and the Universal Social Charge (USC).

 Useful links:

Revenue Irish Tax & Customs
Citizen Information – Tax and PAYE

We do our best to provide accurate and up to date information. However, if you have noticed any inaccuracies in this article, please let us know in the comments section below.
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