Income Tax Flashcards
(18 cards)
Classes of Taxpayers
- Individuals, be they single, widowed, married or a civil partner
- Individuals in partnerships
- Trusts (not looked at in this course)
- Non-resident companies are liable to income tax on certain types of income
Income tax is levied on income applicable to the above classes if taxpayer
Assessed by DIRECT SELF-ASSESSMENT
Or
Deduction from income (PAYE)
Schedule D
Case 1
Trading Income
Case 2
Income from vocations and professions
Case 3
Investment income and income from foreign employments and possessions, provided no Irish standard rate income tax deducted at source
Case 4
ROI deposit interest with deposit interest retention tax deducted (DIRT) and “Catch all” income
Income received under deduction of 20% standard rate of tax
Case 5
Rents and Income from property in ROI
Schedule E
Income from employments, pensions and directorships arising in Ireland
Schedule F
Dividends and other distributions paid by Irish resident companies
Income Tax Year
The calendar year
Ie. The 2019 tax year is the year from 1st January 2019 to 31st December 2019
Year of Assessment
Income tax is charged there on
Basis of Assessment
Current Year basis
Self Assessment
Individual must file a return of income for each tax year not later than 31st October the year following the income tax year
Tax adjusted profits
Net schedule D, Case 1 and Case 2 profits as per the traders accounts less and adjustments required for tax purposes
Total income
Total income less allowances, reliefs and deductions at the marginal rate
Tax allowances
Allowances given by way of reduction of taxable income
Tax credits
Reliefs given as a deduction from tax payable and not by way of a deduction from income
Tax reliefs and deductions
Reliefs that vary on expenditure and are given by way of a deduction from income
Standard rate of tax
The lower rate of income tax
20% for 2019
Marginal/ higher rate of tax
The higher rate of tax
40% for 2019
Tax Bands
Income tax is calculated by reference to tax bands
Tax bands depend of taxpayers status
~Single
~Widowed/ one-parent family
~Married spouse
~Civil Partners
