Life in Ireland: Taxation in Ireland for Employees and Self Employed


In Ireland, the Revenue office runs and monitors the day to day elements of taxation in Ireland. Their website offers many online services as well as information on tax rates, exemptions and tax credits you may be entitled to etc. You can find links to various aspects that may be to you on our helpful Life in Ireland section of translation company website Instantranslation.ie. But below is some basic information to get you started.

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OBTAINING A PPS NUMBER IN IRELAND

To register for tax here, you must first obtain a PPSN – standing for Personal Public Service Number. If you have just moved here and don’t already have one, you can apply for one through the Department of Social Welfare. Your PPS number is a unique reference that helps you access social welfare benefits, public services and information in Ireland. State agencies that use PPS Numbers to identify individuals include the Department of Social Protection, the Revenue Commissioners and the Health Service Executive (HSE).

 

INCOME TAX IN IRELAND

Subject to certain exceptions and exemptions, income tax is chargeable on all income arising in the State to individuals, partnerships and unincorporated bodies.

The most common form of income tax is PAYE (Pay As You Earn), deducted by employers from pay and self-assessment, which applies to the self-employed and those with income from non-PAYE sources.

 

BEGINNING WORK IN IRELAND & TAX

Within the Irish system, your employer is obliged to deduct tax from your pay under the PAYE system. To make sure that your tax is properly dealt and the correct amount is deducted you are required to give your employer your PPS number and you should also apply for a certificate of tax credits to send on to the tax office. If you haven’t submitted the relevant documentation, you may be charged ‘Emergency Tax Rates’ until you have done so. This is a higher tax rate but will be reimbursed.

 

SELF ASSESSMENT TAX IN IRELAND

You may need to carry out ‘self assessment’ for paying tax if you are working for yourself or if you are generating income from a source not covered by the PAYE system, such as profits from rented properties, investment income, foreign income etc.

You must register for self-assessment tax online at revenue.ie by completing a TR1 form and can use your PPS number as your tax number. You must pay and file self assessment tax by  the 31st of October each year.

 

REGISTER AS AN EMPLOYER

If you are employing other people, you will be required to register as an employer, and deduct and pay PAYE on their behalf. If you are only employing works on a contract or freelance basis, this is not necessarily the case however and they may submit their self-assessment tax. If you are employing people on a full time basis however, you can register as an employer using the PREM Tax Registration form which you will also find online.

 

REGISTERING A NEW COMPANY WITH THE TAX OFFICE

If you have started a company, it’s necessary to first let the CRO (Companies Registration Office) know. IN registering your business, or your name as a sole trader, they will send you out a CRO number. You can then use this number and your other details to complete and submit a TR2 form.

STARTING A BUSINESS IN IRELAND

The Revenue offer a useful leaflet on starting your own business and tax which you can download here.

 

LINKS TO FURTHER INFORMATION ON TAX IN IRELAND >

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