Foreigners working in Ireland have to pay income tax. Here is some useful information on the Irish tax system.
In Ireland, income tax is collected at source on salaries according to the PAYE system (Pay As You Earn).
Once you have found a job in Ireland, you must provide your employer with your PPS number so that he can declare you as a taxpayer to Revenue Irish & Tax Customs.
Certificate of tax credits
Once registered with Revenue Irish & Tax Customs, you have to request a certificate of tax credits by sending form 12A to your local tax authorities (your employer should be in a position to give you every detail about your local tax authorities.) Your employer may also provide you with form 12A, but you can download it on the Revenue, Irish Tax & Customs website.
Income tax collected at source includes social contributions. Everything must be clearly stated on the payslip.
At the end of the fiscal year, you only have to send a « Tax return file » if you have additionnal incomes to declare (benefits, income from renting etc.). You will also have to request a tax return file if you feel you have not paid the right amount of tax, whether you paid too much or not enough. You can request a tax return file online. For more information, visit the Revenue Irish Tax & Customs website.
Income tax rates are as follow:
|Income (for an single person with no dependant children)||Tax rate|
|Up to € 36.400||20%|
|€ 36,400 an above||41%|