taxation in the rebublic of ireland
TRANSCRIPT
TaxationIN THE REPUBLIC OF IRELAND
by Timur Shafeev
Contents
Preface Chapter 1. Direct taxes Chapter 2. Indirect taxes Chapter 3. Taxation evasion
and tax avoidance
Conclusions
Preface
Preface
The Irish tax system is primarily in place to pay for current expenditure programs, such as:
universal free education
taxpayer funded healthcare
social welfare payments
public capital expenditure
Chapter 1.Income tax
For administrative purposes, taxable income is expressed under four schedules:
Schedule C
Schedule D
Schedule E
Schedule F
Chapter 1.Pay Related Social Insurance
It includes social insurance and a health contribution. Social insurance payments are used to help pay for social welfare payments and pensions.
Social Insurance
Fund
employees
employers
self-employed
government
Chapter 1.Capital gains tax
Land and buildings in Ireland
Minerals or mining rights in Ireland
Exploration or exploitation rights in a designated area of the Irish Continental
Shelf
Shares (not quoted on a stock exchange) deriving their value from any or all of items 1, 2, or 3
Assets in Ireland used for the purpose of a business carried
on in Ireland
33% taxseveral exclusions and deductions
exempt band: €1,270 per
year
Chapter 1.Capital acquisitions tax
Chapter1Deposit interest retention tax
charged at 30%deducted by the bank or
other deposit-taker before the interest is paid to you
Chapter 1.Corporation tax
charged on the profits of companies
certain expenses can be offset against profits
current rate ranges from 10% to 25%
12,5%
Chapter 2.Value Added Tax
0% on books, children's clothing and educational services and items.
13.5% rate applies to many labour-intensive services.
4.8% rate applies to supply of livestock and greyhounds.
5.2% "flat rate addition" applies to the agricultural sector
23% on the majority of goods.
Chapter 2.Excise Tax
min
eral oil
tobacco
alcohol
Chapter 3Taxation evasion and tax avoidance
most people pay at source penalties for evasion are high
Tax avoidance is entirely legal process
Conclusions
Customs & Excise14%
Capital Tax21%
Stamps20%
Income Tax6%
Corp Tax13%
VAT27%
structure of Revenues