Tax Info / Tax Summary / Universal Social Charge
Universal Social Charge (USC)
The Universal Social Charge is a tax payable on gross income, including notional pay, after any relief for certain capital allowances, but before pension contributions.
| The standard rates of Universal Social Charge are: | |||||
| 2011 - 2014 | Rate | 2015 | Rate | 2016 | Rate |
| On the first €10,036 | 2% | On the first €12,012 | 1.5% | On the first €12,012 | 1% |
| On the next €5,980 | 4% | On the next €5,564 | 3.5% | On the next €6,656 | 3% |
| On the balance | 7% | On the next €52,468 | 7% | On the next €51,376 | 5.5% |
| On the balance | 8% | On the balance | 8% | ||
| The Reduced rates of Universal Social Charge are: | |||
| 2011 & 2012 | 2013 & 2014 | 2015 | 2016 |
| Individual aged 70 years or over. | Individuals aged 70 years or over whose aggregate income for the year is €60,000 or less. | Individuals aged 70 years or over whose aggregate income for the year is €60,000 or less. | Individuals aged 70 years or over whose aggregate income for the year is €60,000 or less. |
| Individuals who hold a full medical card (regardless of age). | Individuals (aged under 70) who hold a full medical card whose aggregate income for the year is €60,000 or less. | Individuals (aged under 70) who hold a full medical card whose aggregate income for the year is €60,000 or less. | Individuals (aged under 70) who hold a full medical card whose aggregate income for the year is €60,000 or less. |
| 2% - on the first €10,036 | 2% - on the first €10,036 | 1.5% - on the first €12,012 | 1% - on the first €12,012 |
| The 4% rate applies to all income over €10,036 | The 4% rate applies to all income over €10,036 | The 3.5% rate applies to all income over €12,012 | The 3% rate applies to all income over €12,012 |
Notes:
- 'Aggregate' income for USC purposes does not include payments from the Dept of Social Protection.
- A 'GP only' card is not considered a full medical card for USC purposes.
- There is a surcharge of 3% on individuals who have non-PAYE income that exceeds €100,000 in a year
| The Exempt categories for Universal Social Charge are: | |||
| 2011 | 2012, 2013 & 2014 | 2015 | 2016 |
| Where an individual's total income for a year does not exceed €4,004 | Where an individual's total income for a year does not exceed €10,036 | Where an individual's total income for a year does not exceed €12,012 | Where an individual's total income for a year does not exceed €13,000 |
| All Dept of Social Protection payments | All Dept of Social Protection payments | All Dept of Social Protection payments | All Dept of Social Protection payments |
| Income already subjected to DIRT | Income already subjected to DIRT | Income already subjected to DIRT | Income already subjected to DIRT |
Universal Social Charge
| UNIVERSAL SOCIAL CHARGE (USC) | |||
The USC is a tax payable on gross income, including notional pay, after any relief for certain capital allowances, but before pension contributions. The USC is effective from 1 January 2011 and and is a cumulative basis from 1 January 2012. |
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| 2014 | Rate | 2015 | Rate |
| Income up to €10,036.00 | 2% | Income up to €12,012.00 | 1.5% |
| Income from €10,036.01 to €16,016.00 | 4% | Income from €12,012.01 to €17,576.00 | 3.5% |
| Income above €16,016.00 | 7% | Income from €17,576.01 to €70,044.00 | 7% |
| Income above €70,044.00 | 8% | ||
| The Reduced Rates of USC | |||
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Individuals aged 70 years or over whose aggregate income for the year is €60,000 or less. Individuals(ages under 70) who hold a full medical card whose aggregate income for the year is €60,000 or less. |
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| 2014 | Rate | 2015 | Rate |
| Income up to €10,036.00 | 2% | Income up to €12,012.00 | 1.5% |
| Income above €10,036.00 | 4% | Income above €12,012.00 | 3.5% |
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| The Exempt Categories 2014 |
2015 |
|
| Where an individual's total income for a year does not exceed €10,036. | Where an individual's total income for a year does not exceed €12,012. | |
| All Dept of Social Protection payments. | All Dept of Social Protectionpayments. | |
| Income already subjected to DIRT. | Income already subjected to DIRT. | |
| Home Renovation Incentive Scheme | ||
The Budget provides for the Home Renovation Incentive Scheme to be extended to landlords subject to income tax. Full details will be included in the forthcoming Finance Bill. | ||
| Employment and Investment Incentive (EII) and Seed Capital Scheme | ||
| A number of extensions have been announced to the EII scheme. They include | ||
| increasing the required holding period for shares from 3 to 4 years | ||
| the amount of finance that can be raised by a company under the EII will be increased to €5m, annually subject to a lifetime maximum of €15m | ||
| the scheme will include Medium sized enterprises in non-assisted areas and internationally traded financial services subject to Enterprise Ireland certification. | ||
The inclusion of hotels, guest houses and self-catering accommodation in the scheme will be extended by a further three years and the management and operation of Nursing Homes for three years will also be included.These extensions are subject to EU state-aid approval and a commencement order.There is no change to the tax provisions in the Seed Capital Scheme which will be relaunched in the coming months. |
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| Foreign Earnings Deduction (FED) |
FED was introduced in 2012 for the tax years 2012 to 2014 in respect of income earned whilst working in Brazil, Russia, India, China or South Africa.With effect from 1 January 2013, the number of states was extended to include Algeria, Democratic Republic of Congo, Egypt, Ghana, Kenya, Nigeria, Senegal and Tanzania.FED has now been extended up to the tax year 2017 and, with effect from 1 January 2015, the number of states will be extended to include Japan, Singapore, South Korea, Saudi Arabia, the United Arab Emirates, Qatar, Bahrain, Indonesia, Vietnam, Thailand, Chile, Oman, Kuwait, Mexico, and Malaysia. |
The qualifying conditions will be eased by deeming time spent travelling to a relevant state, or from a relevant state to Ireland or to another relevant state, to be time spent in a relevant state. Also, from 1 January 2015, the number of whole days of continuous presence requirement in a relevant state will be reduced from 4 to 3 and the number of qualifying days requirement in a continuous period of 12 months will be reduced from 60 to 40. |