The PAYE system. Employers deduct the tax automatically from their employee’s wages and pass it on to the revenue commissioners. This system is progressive, so the more you earn, the greater income tax has to be paid.
Employee PRSI – This is a compulsory insurance payment by the employees to the state. Money goes towards unemployment payments, pensions, maternity benefits.
VAT – Is a tax paid by consumers on certain goods and services. Goods are bought, VAT is paid. The two main VAT rates are 13 % and 21 ½ %. Excise duties are taxes levied on certain types of goods within the state, e.g. alcohol and tobacco
Motor Tax is a tax on all roadworthy vehicles. The amount of tax varies with the size of the vehicle
Capital gains tax is a tax paid on the profits made by an individual/family from selling an asset, e.g. selling property.
Capital Acquisition Tax (CAT)- CAT is made up of two parts- gift and inheritance tax.
- Gift tax is the tax on the value of goods received by a person from another person who is still alive.
- Inheritance tax is a tax on the value of an inheritance received by a person from another person who has died. A certain amount of each gift or inheritance is exempt from this tax. The amount of the
exemption depends on the closeness of the relationship between the giver & the recipient.
DIRT – This is deducted from all the interest paid on bank and building society accounts and passed on to the revenue commissioners.