The Irish taxation system
PAYE
Most employees in Ireland pay tax through the PAYE (Pay As You Earn) system. This means that your employer deducts the tax you owe directly from your wages, and pays this tax directly to the Revenue Commissioners. The Revenue Commissioners collect taxes from citizens on behalf of the Irish Government. To make sure that your tax is properly dealt with from the start and that your employer deducts the right amount of tax from your pay, you should do the following: Give your employer your PPS No. (Personal Public Service Number) and ask for your Employer’s Registered Number. Your employer will then let your tax office know that you have started work and that they are your employers. Form 12A application You will also need to complete an application form called Form 12A. Application for a Certificate of Tax Credits and Standard Rate Cut-Off Point. Form 12A is available from:
The tax office will send you a notice of your tax credits and standard rate cut-off point to both you and your employer. You will have to pay ‘emergency tax’ (much higher rate than normal) if your employer has not received either:
‘Tax credits’
Your tax is calculated depending on your income. ‘Tax credits’ are then deducted from the gross tax. Tax credits are the portion of your income on which you do not have to pay tax. For more information contact the Revenue Commissioners in Limerick at (061) 212 700 or visit www.revenue.ie.
Register online for tax If you register online at www.revenue.ie (a quick link to the relevant website page is http://tinyurl.com/clq99c) you can sort out your tax affairs online.
Payslips
You are entitled to get a pay slip every time you are paid. It will show the gross wage and details of all deductions like tax and PRSI.
Jobseeker’s benefit. A pay slip is essentially a statement in writing from the employer to the employee that outlines the total pay before tax and all details of any deductions from pay. For more information, go to the Citizens Information Website www.citizensinformation. ie (or you can go straight to the relevant page by using this link: http://tinyurl.com/djh92p).
PAYE
Most employees in Ireland pay tax through the PAYE (Pay As You Earn) system. This means that your employer deducts the tax you owe directly from your wages, and pays this tax directly to the Revenue Commissioners. The Revenue Commissioners collect taxes from citizens on behalf of the Irish Government. To make sure that your tax is properly dealt with from the start and that your employer deducts the right amount of tax from your pay, you should do the following: Give your employer your PPS No. (Personal Public Service Number) and ask for your Employer’s Registered Number. Your employer will then let your tax office know that you have started work and that they are your employers. Form 12A application You will also need to complete an application form called Form 12A. Application for a Certificate of Tax Credits and Standard Rate Cut-Off Point. Form 12A is available from:
- River House, Charlotte's Quay, Limerick.Public Office Opening Hours:Monday - Friday: 10 a.m. – 4 p.m. Phone 061 212 700
- your local Citizens Information Centre.
The tax office will send you a notice of your tax credits and standard rate cut-off point to both you and your employer. You will have to pay ‘emergency tax’ (much higher rate than normal) if your employer has not received either:
- a certificate of tax credits from the tax office; or
- Form P45 (parts 2 and 3) from you, in respect of your previous employment.
‘Tax credits’
Your tax is calculated depending on your income. ‘Tax credits’ are then deducted from the gross tax. Tax credits are the portion of your income on which you do not have to pay tax. For more information contact the Revenue Commissioners in Limerick at (061) 212 700 or visit www.revenue.ie.
Register online for tax If you register online at www.revenue.ie (a quick link to the relevant website page is http://tinyurl.com/clq99c) you can sort out your tax affairs online.
Payslips
You are entitled to get a pay slip every time you are paid. It will show the gross wage and details of all deductions like tax and PRSI.
Jobseeker’s benefit. A pay slip is essentially a statement in writing from the employer to the employee that outlines the total pay before tax and all details of any deductions from pay. For more information, go to the Citizens Information Website www.citizensinformation. ie (or you can go straight to the relevant page by using this link: http://tinyurl.com/djh92p).