This tax arises when individuals have any the following sources of income:
- Income from employment
- Income from current assets (interest, dividends, etc)
- Income from property (rentals)
- Income from economic activities (business profits)
- Capital Gains
- Deemed income (on the benefits derived from certain assets)
Residents are taxed at a maximum of 19% on certain types of income such as savings income and capital gains. On the remaining sources of income, the minimum tax rate is 19% and the maximum is 45%.
Resident taxpayers are entitled to a minimum personal allowance of €5,150, this amount increases after the taxpayer reaches the age of 65. Further allowances can be claimed for dependants. Other deductions may also be available.
Payments on account may be required for sole traders and the total income tax for each calendar year is due by 30th June of the following year. 40% of the remaining payment due may be postponed until the following November.