Ireland » Taxes

Employee Tax	Value Added Tax	Income Tax	Capital Gains Tax

Employee Tax

The employer is obligated to deduct tax at source from an employee and to make additional contributions to social security, known as PRSI (Pay Related Social Insurance). The Annual Income around 48,800 (4.0%) upto 48,800 (2.0%).

Value Added Tax

In most cases, VAT is 21%. There are reduced rates of VAT of 4.8%, and 13.5%. VAT is charged on assets and services in Ireland as well as on imports into Ireland. The minimum turnover for registering with the VAT authorities is EUR 35,000 (for services) and EUR 70,000 (for goods)

Income Tax

An individual is liable for tax on his income as an employee and on income as a self-employed person. Tax will be payable on income earned in Ireland and overseas by an individual who meets the test of a "permanent resident" of Ireland. The standard rate of Irish income tax for individuals is 20% on the first EUR32,000 of taxable income, rising to 42% on the balance.

Capital Gains Tax

The rate of tax payable on capital gains in 2007 is 20% for individuals. A capital loss may be offset against a capital gain in the current year, or against a capital gain in the coming years.