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Which tax band did Ireland assign to you? And what tax credit are you allowed for? Check them before you claim your tax refund for the financial year, 2017!

Every employee has already received his PAYE-P60 for 2017. In this document, you will find the summary of your earnings and the tax you paid last year. Unfortunately, many expats forget to claim their allowances before they apply for a tax refund. Find out what allowance you are entitled to and how you can apply for it!

If you are resident for tax purpose in Ireland, you probably will contribute to the national tax system through the PAYE scheme (the acronym for Pay As You Earn). If not, you will use a Self-Assessment.
The amount of tax you will pay depends on the tax band you’re assigned to, and the tax bands changes based on your marital and parental status (single parents, married, single parents with dependent children, …).

The agency responsible for tax and related manners is the Revenue Commissioners, usually simply referred to as Revenue.
The fiscal year in Ireland corresponds to the calendar year, so it goes from the 1st of January to the 31st of December.
All employers are obliged to send to each of their employees the P-60 from 1st January until the 15th of February. The document resumes your income and the deducted tax. If you leave your job before the end of the financial year, you will receive an equivalent, the P-45. You will need one of these documents to fill your tax return and claim your tax refund. Don’t forget you can apply for your tax refund up to 4 years back from the current year. For example, if you apply now you can get your overpaid tax since 2014.

How Ireland calculates your tax 

Irish tax system applies a general tax rate, called standard tax rate, corresponding to the 20% of your taxable income. This tax rate works up to a certain amount that changes depending on your marital status and, eventually, your parental status.
As is mentioned above, it changes depending on the tax bands you are assigned to. Instead, standard rate cut-off point is the name for the specific limit amount assigned to each tax band. All your income above this limit is taxed at 40%.
For example, single persons pay 20% of their income up to €33,800 and if they earned more, 40% of all the remaining income.In addition, Ireland allows you to deduct a certain amount from your taxable income (so after your tax is calculated) that is called tax credit.
The relating amount of your possible tax credit depends, again, on your tax band and it is adjusted every year.
Here you find the maximum amount you could claim for SOME of the tax bands:
 

   Personal Credit in 2018

 

Single person

€1,650

Married Person

€3,300

Single person with children

€1,650

Home carer’s credit

€1,200

Fishermen Tax Credit

€1,270


Find out more!

The first thing to do when you arrive in Ireland is asking for a Personal Public Service Number (PPSN). A unique number with which you can sign your working contract, claim your social benefits, pay your taxes. In Ireland, your employer will deduct from your salary the income tax, as well as USC (Universal Social Charge) and PRSI (Pay Related Social Insurance) that is a voluntary insurance.

Make sure you claim for the maximum tax credit and tax refund, write to us! It’s easy and fast on our website. Try our FREE calculator and find out how much money you may have back!    

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