Taxation – We can prepare and submit all your necessary tax returns to Revenue using the Revenue Online System (ROS), we will ensure all available reliefs and deductions have been made to keep your liability as low as possible. Some of the taxes we can help you with are briefly outlined below:
Most goods and services supplied in Ireland are subject to VAT. VAT is a tax on consumer spending. It is collected by VAT-registered traders on their supply of goods and services.
We can calculate and submit your bi-monthly or quarterly VAT 3 returns and make any payments due for you on the Revenues On-line System (ROS).
Subject to certain exceptions and exemptions, income tax is chargeable on all income arising in the State to individuals, partnerships and unincorporated bodies.
Income Tax is also chargeable on foreign earnings. However tax treaties and residence/domicile factors must be considered further.
The most common form of income tax is PAYE (Pay As You Earn) deducted by employers from pay. Self-assessment applies to the self-employed and those with income from non-PAYE sources.
Exemption from Income Tax
You may be exempt from paying Income Tax subject to certain conditions of profits or income. The principal exemptions are as follows:
It is important to note that Pay Related Social Insurance (PRSI) and Universal Social Charge (USC) generally do not enjoy the same exemptions as Income Tax and may be applied to income that is Income Tax exempt. Please feel free to discuss this point further with any of our members of staff.
Capital Gains Tax (CGT) is chargeable on any gains that have arisen on the disposal of assets, other than that part of a gain which arose in the period prior to 6 April 1974. Any form of property (other than Irish currency) including an interest in property (as, for example, a lease) is an asset for CGT purposes.
Rate of Tax
The rate of CGT on disposals varies and is determined on the date of disposal of the asset. The standard rates are as follows:
Reliefs and Exemptions from Capital Gains Tax
There are a number of reliefs and exemptions available in relation to Capital Gains Tax including Gains made on the Disposal of Private Residences, the transfer of a site from parent to child, and retirement relief.
The first €1,270 of an individual’s annual chargeable gains, net of allowable losses, is exempt.
A detailed list of all reliefs and exemptions can be found in the Revenue guide:
Capital Acquisitions Tax (CAT), comprises of Gift Tax, Inheritance Tax and Discretionary Trust Tax. Gift tax is charged on taxable gifts taken (other than on a death) on or after 28th February, 1974 and Inheritance Tax is charged on taxable inheritances taken (on a death) on or after 1 April, 1975. A once-off Inheritance Tax applies to property subject to a discretionary trust on 25 January, 1984, or becoming subject to a discretionary trust on or after that date.
Rate of Tax
The standard rate of CAT is 33% in respect of gifts and inheritances taken on or after 6th December 2012.
Reliefs and Exemptions from Capital Acquisitions Tax
There are a number of reliefs available in relation to Capital Acquisitions Tax, including Business Relief, Agricultural Relief, and Favourite Nephew Relief. Exemptions may apply to certain classes of property and to certain classes of individuals.
Payments made from a contactor to a subcontractor are liable to RCT. This tax applies to both resident and non-resident contractors.
RCT applies only where the operations are completed under a relevant contract this is defined by the Revenue as “a contract to carry out or supply labour for the performance or relevant operations”.
RCT applies to the following:
RCT does not apply to professionals such as architects, surveyors etc.
Corporation tax is a tax charged on the profits of companies resident in the state and non resident companies who trade in the state through a branch or agency.
How is a Company Taxed?
Corporation tax is charged on the company’s profits this includes income and chargeable gains. A company’s income for tax purposes is calculated in accordance with Income Tax rules. Chargeable gains are calculated in accordance with Capital Gains Tax rules.
What is the rate of Corporation Tax?
There are two rates of Corporation Tax:
* Excepted trades include certain land dealing activities, income from working minerals and petroleum activities.
Pay As You Earn (PAYE) – Most employees pay tax through the PAYE system. This is a method of Income tax under which a person’s employer calculates and deducts the amount(s) due each time a payment of wages, salary, etc. is made to an employee. These calculations are done using payroll software.
Pay Related Social Insurance (PRSI)- Most employers and employees (over 16 years of age and under 66) pay social insurance (PRSI) contributions into the national Social Insurance Fund. In general, the payment of social insurance is compulsory. The term ‘insurable employment is used to describe employment that is liable for social insurance contributions.
Universal Social Charge (USC) – The USC is a tax that replaced both the income levy and the health levy (also known as the health contribution) since 1 January 2011. You pay the USC if your gross income is more than €12,012 per year. (This limit was €4,004 in 2011 and €10,036 from 2012 to 2014.) It is calculated on a weekly or monthly basis.
PRSI and USC are collected using the PAYE method.
Should you have any queries or require any further information on any aspect of accountancy please contact a member of our team on 053-9235287 or email firstname.lastname@example.org