Tax In Ireland

A Contractor's Guide to Taxes : 

One of the most consistently challenging aspects of contracting in Ireland is complying with the country’s tax system. As well as paying tax in Ireland, you might also still be eligible to pay some tax in your home country, and understanding the legislation behind this can be a challenge. 

How do I calculate my taxable income: 

If you’re working in Ireland under a permanent contract, many employers will handle your tax under the PAYE (pay-as-you-earn) system. This means that they calculate and process your taxes in Ireland for you and then send you a net wage. Your income tax, public health insurance, social security and other deductions will all be covered by this payment. This is the easiest way to handle your income tax in Ireland, but contractors may not be offered this service because of their short stay with each employer.

Anybody who can’t pay their tax in Ireland through PAYE is left with the prospect of doing everything themselves.

Do you know much about Irish Tax Law? Does Ireland have a tax treaty with your home country? You will need to find out or find someone who can help! Income tax in Ireland can range from 20 to 40 percent, and you need to be sure you are placed in the correct tax brackets.

Tax Calculator: 

If you are a contractor and want a calculation on your tax and net retention in Ireland, we can supply it to you free of charge. 

Using an Umbrella Company for Income Tax : 

Contractors in Ireland are faced with masses of paperwork and numerous wasted hours filing a tax return unless they find an alternative option. An Irish umbrella company can act as your employer during your stay in the country whilst still allowing you the freedom of a contractor. The only difference is that you submit your timesheets to them; they’ll calculate and pay your taxes as you earn, and then you receive a net wage (as well as documentation for your records).

The companies are experts in Irish taxation, and they’ll ensure that you keep the largest proportion of your earnings whilst complying with local laws. They can deal with any issues with the Irish tax office or tax department directly including processing your tax refund if you are eligible.

How We Can Help You with Tax: 

We work with numerous umbrella companies in Ireland, many of whom are experts in tax and immigration laws. If you have any questions about tax in Ireland, we’ll get the answers from them directly so you can rest assured you’ll be getting accurate information. We have comprehensive knowledge of the different services they provide, and can help you find the right company to handle your income tax. We help oil and gas workers, software developers, IT project managers, testers, business analysts and telecommunications contractors get tax efficient payments and sponsorship for their Irish work permit.

Our advice is 100 percent free, and comes with no obligations. You will be paying taxes in Ireland but without the overhead of directly dealing with the Irish tax authorities. Get in touch with us today for some reliable advice on tax in Ireland!

 

When Do You Need to Lodge Your Tax Return?: 
After the tax year (Calendar year)
Tax Filing Deadline : 
31 October. If filed between 1 November and 31 December, a surcharge penalty of 5% applied. If filed after 31 December, a surcharge penalty of 10% applies.
Can you file it online? : 
Yes, https://www.revenue.ie/en/Home.aspx
Currency: 
Euro (EUR)
Tax-free Threshold in: 
None
Grossed Income: 
For the first 33,800
Tax Rate: 
20%
Grossed Income: 
Above 33,800
Tax Rate: 
40%
How long does it take to set up: 
5 days
How much does it cost: 
120.28 EUR
Is it easy? : 
Starting a business rank: 8. High rank means it is easy to start a business in Ireland.
How to File Taxes in: 

Personal income tax in Ireland is based on a process of self-assessment. Filing taxes in Ireland involve the following steps:

Step 1: Apply for a Revenue Online Service (ROS) Access Number (RAN). This will be sent out by post to your chosen address within 3 working days.

Step 2: Apply for your Digital Certificate using your RAN number. A ROS system password will be sent to your address within 3 working days.

Step 3: Using the ROS password, you can retrieve your ROS Digital Certificate which allows you to access ROS.

Step 4: If this is your first time filing a self-assessment Form 11, make sure you are registered for income taxes by completing a Form TR1, found on the ROS website.

Step 5: Complete the required form:

  • Form 11: Anyone with earnings outside of the PAYE system.
  • Form 12: PAYE employees and pensioners.

Step 6: Complete your statement of Net Liabilities and Pay.

Step 7: Submit the tax return to Revenue. 

Notes: 

The above table represents the income tax rates for single individuals.

For married couples or civil partners, taxation is jointly assessed.

  • For a married couple with one income, the tax rate is 20% on the first 42,800 EUR and 40% on income over 42,800 EUR.
  • For a married couple with 2 incomes, the tax rate is 20% on the first 67,600 EUR and 40% on income over 67,600 EUR.
Does the 183 day rule apply in: 

Yes

When do you become a tax resident in: 
  • You spend 183 days or more in Ireland during the calendar year.
  • You spend an aggregate of 280 or more days in Ireland during the previous 2 tax-year periods, with more than 30 days in Ireland each tax year.
  • If you have been a tax resident in Ireland for 3 consecutive years, you will obtain ordinary residence. If you cease to be a tax resident, you will be continue to be treated as an ordinary resident for 3 years after departure.
Am I taxed on my global income in: 

Yes, but the following exceptions apply:

  • Foreign-domiciled individuals.
  • Individuals who commute to work outside Ireland and pay tax on the income from the employment outside Ireland.

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