Taxation in the Republic of Ireland

thumb|upright=1.2|Recreation of the OECD Hierarchy of Taxes, which is central to Irish tax policy

Taxation in Ireland in 2017 came from personal income taxes (40% of Exchequer Tax Revenues, or ETR), and consumption taxes, being VAT (27% of ETR) and excise and customs duties (12% of ETR). Corporation taxes (16% of ETR) represents most of the balance (to 95% of ETR), but Ireland's Corporate Tax System (CT) is a central part of Ireland's economic model. Ireland summarises its taxation policy using the OECD's Hierarchy of Taxes pyramid (see graphic), which emphasises high corporate tax rates as the most harmful types of taxes where economic growth is the objective. In 2017, the Central Bank of Ireland replaced Irish GDP with Irish GNI* to remove the distortion; 2017 GDP was 162% of 2017 GNI* (EU–28 2017 GDP was 100% of GNI). in March 2018 the Financial Stability Forum ranked Ireland as the 3rd largest Shadow Banking OFC, and in June 2018 tax academics calculated that Ireland was the world's largest corporate tax haven.]]

Each year, the Department of Finance is required to produce a report on Estimates for Receipts and Expenditure for the coming year. The table below, is extracted from the "Tax Revenues" section of the report for the prior-year (e.g. the 2017 column is from the 2018 report), by which time the "Tax Revenues" for that year are largely known (although still subject to further revision in later years).

[[File:Irish Exchequer Tax Revenues to GDP and GNI.png|thumb|upright=1.5|Irish Exchequer Tax Revenues as % of GDP / GNI*

!style="text-align:left"|2015

!style="text-align:left"|2016

!style="text-align:left"|2017

!style="text-align:left"|2014]]

Comparisons of Ireland's tax system and international tax systems are complicated by two issues:

• Distortion of Ireland's GDP. Ireland's GDP is artificially inflated by the BEPS flows of Ireland's Multinational tax schemes. In Q1 2015, Apple restructured its Irish BEPS tools, which required Irish 2015 GDP to be restated by 34.4%. In February 2017, the Central Bank of Ireland replaced Irish GDP with a new metric, GNI*, to remove the distortion; 2017 GDP was 162% of 2017 GNI* (EU–28 2017 GDP was 100% of GNI).

Total Gross Tax-to-GDP ratio

[[File:Tax-to-GDP Ratio (Ireand versus OECD, 2000-2016).png|thumb|upright=1.5|OECD Gross Tax-to-GDP ratio (2000–2016) In October 2013, the Department of Finance Tax Policy Group, highlighted the distortion of Irish GDP impacted this metric, and Ireland's Tax-to-GNP ratio at 36% was above the OECD average, and in line with the EU–27 average.

However, since Apple's 2015 restructuring, Ireland's headline Tax-to-GDP ratio had fallen to the bottom of the OECD range at under 23%. Using 2017 GNI* (Irish 2017 GDP is 162% of Irish 2017 GNI*), Ireland Tax-to-GNI* ratio is back to 33%, in line with the OECD average.

Income tax (PAYE and PRSI)

[[File:Average tax wedge for single worker (OECD vs Ireland, 2000 to 2017).png|thumb|Tax wedge for a single worker: OECD versus Ireland.

[[File:Effective employment tax (Ireland vs OECD average, 2017).png|thumb|Irish employee tax rate (single and married) versus the OECD in 2017

The progressive nature of Ireland's personal tax system is also apparent in the distribution of Irish personal tax. In October 2013, the Department of Finance Tax Policy Group, highlighted the following personal tax (PAYE and EE–PRSI), statistics from the Irish Revenue Commissioners for the 2012 tax year: in April 2018, the OECD and the Irish Revenue Commissioners disclosed that in 2015:

• Top 1% of earners, earned over €203,389 in income and paid 19% of personal tax.
• Top 10% of earners, earned over €77,530 in income and paid 61% of personal tax.

Consumption tax (VAT and Excise)

thumb|VAT rates in 2014 in the EU–28

Irish headline VAT is in line with EU VAT rates (see graphic). The OCED Revenue Statistics 2017 – Ireland, ranks Ireland as being below the OECD average for effective VAT (22nd–lowest out of 35 OECD countries), but in line with the OECD average for overall Consumption taxes (e.g. VAT and Excise combined), ranking 16th of out 35 OECD countries.]]

Ireland's taxation system is distinctive for its low headline rate of corporation tax at 12.5% (for trading income), which is half the OECD average of 24.9%. While Ireland's corporate tax is only 16% of Total Net Revenues (see above), Ireland's corporate tax system is a central part of Ireland's economic model. Not only do foreign multinationals pay 80% of Ireland's corporation tax, but they also directly employ 10% of the Irish labour force, rising to 23% when Public Sector, agri and finance jobs are excluded in 2016, they were 57% of all Irish non-farm OECD value-add (see multinational economy). A source of controversy is the effective tax rate of Ireland corporation tax system, of which the independent evidence is that it is less than 4%, and as low as 0.005% for major U.S. multinationals (see Irish effective corporate tax rate).

Ireland's Corporate Tax System has seen Ireland labelled a tax haven, and in June 2018, academics estimated that Ireland was the largest global tax haven. Ireland's reputation as a tax haven for foreign multinationals to avoid global taxes contrasts with the fact that Ireland's overall tax receipts are in line with the EU and OECD averages (when properly adjusted using Irish GNI*, and not the distorted Irish GDP). Since 2002, Ireland has operated a tax year coinciding with the calendar year (1 January to 31 December). The change coincided with the introduction of the euro in Ireland.

• Schedule D
• Case I: Profit arising from any trade, or from quarries, mines, works, tolls, fairs, bridges, and railways
• Case II: Profit arising from any profession not contained in any other schedule
• Case III: Interest on money or debts, annuities, discounts, profits on government debt not covered in schedule C, interest on certain government debt, income on securities outside the state not covered in schedule C, and income from possessions outside the state
• Case IV: Tax in respect of any annual profits or gains not covered by any other case or schedule. There are also specific types of income specified by law to be taxed under case IV.
• Case V: Tax in respect of rent or receipts from any easement
• Schedule E: Income from public offices, employment, annuities, and pensions.
• Schedule F: Dividends from Irish companies.

Rates of income tax

Since 1 January 2015, the tax rates apply as follows:

There are 2 tax brackets, 20% (the standard rate) and the balance of income at 40% (the higher rate). The brackets depend upon the individual's category.

{|class="wikitable"

|+style="text-align: left;" | Irish income tax brackets (2018)

!Rate

!Taxable earned income

!Category

|-

|20%

|0–€34,550

|individuals without dependent children

|-

|20%

|0–€38,550

|single or widowed persons qualifying for the One-Parent Family tax credit

|-

|20%

|0–€43,550

|married couples

|-

|40%

|earned income remainder

|all categories

|}

The €43,550 amount may, for married couples, be increased by the lesser of: €25,550 or the income of the second spouse. This brings the total maximum standard rate band for a married couple to €69,100, twice the single person's band. The increase is not transferable between spouses.

Irish income tax brackets (2019)

{| class="wikitable"

!Rate

!Taxable earned income

!Category

|-

|20%

|0–€35,300

|individuals without dependent children

|-

|20%

|0–€39,300

|single or widowed persons qualifying for the One-Parent Family tax credit

|-

|20%

|0–€44,300

|married couples

|-

|40%

|earned income remainder

|all categories

|}

The €44,300 amount may, for married couples, be increased by the lesser of: €26,300 or the income of the second spouse. This brings the total maximum standard rate band for a married couple to €70,600, little less than twice the single person's band. The increase is not transferable between spouses.

Tax credits

A taxpayer's tax liability is reduced by the amount of their tax credits, which replaced tax-free allowances in 2001. Tax credits are not refundable in the event that they exceed the amount of tax due, but may be carried forward within a year.

Rules of residence

A person resident and domiciled in Ireland is liable to Irish income tax on their total income from all sources worldwide. In this sense, a person who spends:

• 183 days or more in Ireland during a tax year, or
• an aggregate of 280 days in the current and preceding tax year

is considered to be resident. Presence in Ireland of not more than 30 days in a tax year is ignored for the purposes of the two year test. A person may also elect to be resident in Ireland in a year in which he arrives in Ireland, once he can satisfy Revenue that he intends to remain there for the next tax year.

A person is domiciled in Ireland if born in Ireland; a person who has "demonstrated a positive intention of permanent residence in [a] new country" ceases to be domiciled in Ireland.

A person who is resident in Ireland, and is either ordinarily resident or domiciled in Ireland, but not both, is liable to tax on all Irish income in full, and on such foreign income as is remitted to Ireland.

A person or couple earning slightly over the limit may claim what is known as marginal relief. In this case, income over the exemption limit is charged to tax at a flat rate of 40%. A person or couple may choose to be taxed under marginal relief or the regular tax system, and will be granted whichever system is more beneficial, including retroactively. Persons aged over 50 are entitled to a further tax credit, which is normally paid in full to the insurance company to offset the considerably higher cost incurred by insurers in respect of members over 50.

Medical expenses

Tax relief is available on medical expenses. With the exception of fees paid to approved nursing homes, the relief is only available retrospectively (i.e. by completing a tax return at the end of the year), and the relief is awarded at 20% since 2009. It will cease from 2011.

Tuition fees

Tax relief at 20% is allowed in respect of tuition fees paid for third-level courses, excluding the first €2,500 for a full-time course and €1,250 for a part-time course, of the course fees). The maximum relief available is €1,400 per year (20% of €7,000). Courses must be of at least two years duration, except for postgraduate courses which must be of at least one-year duration. The course must also be approved by Revenue and delivered in a college approved by Revenue.

As with medical expenses, since 2007 the relief could be claimed in respect of payments made by any person, irrespective of the relationship between payer and payee. It cannot be claimed in respect of administration, registration, or examination fees.

Pension contributions

Contributions to a pension scheme can be deducted from gross income before calculation of tax; tax relief is therefore allowed on them at 40% if the contributor is paying tax at that rate. Contributions (including AVCs) are subject to the Universal Service Charge currently at 7%.

How tax is paid

Taxpayers pay either on a "pay as you earn" system or a "pay and file" system.

The 'Pay As You Earn' (PAYE) system

Employees, pensioners, and directors generally have tax deducted from their income by their employers as it is paid. Employers receive notification of the tax credit and standard rate band applicable to the employee from Revenue. A PAYE employee need only file a tax return on form 12 if requested to do so by an inspector of taxes, if she has other undeclared income, or if she wishes to claim reliefs which are not available on another form.

Self-assessment

The self-assessment system applies to persons who are self-employed or who receive non-PAYE income. Under the self-assessment system, a taxpayer must:

• pay preliminary tax for the current tax year,
• pay any balance of tax due for the last tax year, and
• file a return of income on form 11 for the last tax year

by the deadline each year. The deadline is 31 October for paper filings. It has historically been extended to mid-November for returns filed online, but it is not clear whether this will continue.

Preliminary tax must be at least equal to the least of:

• 90% of tax for the current tax year
• 100% of tax for the previous tax year
• 105% of tax for the pre-preceding tax year (for payments by monthly direct debit)

Revenue will calculate the tax payable for a person who files a return of income more than two months prior to the filing deadline. prosecution, or publication of their name in a defaulters' list.

Universal Social Charge (USC)

The Universal Social Charge (USC) is a tax on income that replaced both the income levy and the health levy (also known as the health contribution) since 1 January 2011. It is charged on a person's gross income before any pension contributions or PRSI.

If a person's income is less than €13,000 they pay no Universal Social Charge (USC). (This limit was €4,004 in 2011, €10,036 from 2012 to 2014 and €12,012 in 2015.) Once income is over this limit, a person pays the relevant rate of USC on all income. For example, a person with income of €13,000 will pay no USC. A person with income of €13,001 will pay 0.5% on income up to €12,012 and 2.5% on income between €12,012 and €13,001.

Aggregate income for USC purposes does not include payments from the Department of Social Protection.

Standard Rates of USC (2018)

{| class="wikitable"

!Rate

!Income Band

|-

|0.5%

|Up to €12,012

|-

|2%

|From €12,012.01 to €19,372.00

|-

|4.75%

|From €19,372.01 to €70,044.00

|-

|8%

|From €70,044.01 to €100,000.00

|-

|8%

|Any PAYE income over €100,000

|-

|11%

|Non-PAYE (Self-employed) income over €100,000

|}

Reduced Rates of USC (2018)

{| class="wikitable"

!Rate

!Income Band

|-

|0.5%

|Income up to €12,012

|-

|2%

|All income over €12,012

|}

Reduced rates of USC apply to:

• People aged 70 or over whose aggregate income for the year is €60,000 or less
• Medical card holders aged under 70 whose aggregate income for the year is €60,000 or less

Pay Related Social Insurance (PRSI)

PRSI is paid by employees, employers, and the self-employed as a percentage of wages after pension contributions. It includes social insurance and a health contribution. and the State Pension (contributory). The health contribution is used to help fund the health services, Class A employees earning under €352 per week are placed in subclass AO, and pay no PRSI.

How PRSI is paid

Taxpayers paying class S PRSI pay it, and the health contribution, along with their tax. For other taxpayers, it is withheld from their net income. Goods imported into Ireland from outside the EU are also subject to VAT, which is charged by Customs at the border. Irish VAT is part of the European Union Value Added Tax system and each Member State is required to impose the EU VAT legislation by way of its own domestic legislation, however, there are key differences between the rules for each state. All non-exempt traders are required to register for VAT and collect VAT on the goods and services they supply.

The registration thresholds are as follows:

VAT rates

VAT rates range from 0% on books, children's clothing and educational services and items, to 23% on the majority of goods. The 13.5% rate applies to many labour-intensive services as well as to restaurant meals, hot takeaway food, and bakery products. The flat rate addition is not paid away to the Revenue.

Traders collecting VAT can deduct the VAT incurred on their purchases from their VAT liability, and where the VAT paid exceeds VAT received, can claim a refund. The VAT period is normally two calendar months (other filing periodicity, such as four-monthly, and semi-annual also apply in certain circumstances).

A VAT return is made on the 19th day of the following the end of the period. However, if a person submits the return on the website, i.e. ROS ("Revenue Online Service"), and also performs payment via ROS, then the due date is extended to the 23rd day following the end of the period.

Once a year a detailed breakdown of VAT returns must be prepared by traders and submitted to the government – traders may choose their own date for this. Traders with low VAT liabilities may opt for six-monthly or four-monthly payments instead of the standard bi-monthly one, and traders who are generally in the position of claiming repayments of VAT rather than making payments may make monthly returns.

Excise Duty

Excise tax is charged on mineral oil, tobacco, and alcohol.

• Mineral oil includes hydrocarbon oil, liquefied petroleum gas, substitute fuel, and additives. Hydrocarbon oil includes petroleum oil, oil produced from coal, bituminous substances, and liquid hydrocarbons, but not substances that are solid or semi-solid at 15 °C and this was scheduled to be extended in May 2010 to apply to other uses of heavy oil and liquefied petroleum gas, and to natural gas.
• Tobacco excise applies to tobacco products, including cigars, cigarettes, cavendish, hard-pressed tobacco, pipe tobacco, and other smoking or chewing tobacco. The increased rate of tax will bring prices for cigerettes up by 50c per packet as outlined in the Irish Budget 2018.
• Alcohol and alcoholic beverages duty applies to alcohol products produced in Ireland or imported into Ireland. As of 2016 tax over a bottle of wine is over 50%.

Corporation tax (CT)

[[File:Irish Corporation Tax as % of Total Tax (1989 to 2012).jpg|thumb|Irish Corporation Tax as a % Total Irish Tax has between 10% and 16% of Total Irish Tax.

• a 12.5% headline rate for trading income (or active businesses income in the Irish tax code); trading relates to a business enterprise;
• a 25.0% headline rate for non-trading income (or passive income in the Irish tax code); covering investment income (e.g. income from buying and selling assets), rental income from real estate, net profits from foreign trades, and income from certain land dealings and income from oil, gas and mineral exploitations.

thumb|upright=1.0|Irish Gross Operating Surplus (i.e. profits), by the controlling country of the company (note: a material part of the Irish figure is also from U.S. [[#Corporate tax inversions|tax inversions who are U.S.–controlled). Eurostat (2015).]]

The special 10% tax rate for manufacturing in Ireland (introduced from 1980/81), and for financial services in the special economic zone of the International Financial Services Centre in Dublin (introduced from 1987), have now been phased out since 2010 and 2003 respectively, and are no longer in operation.

, Ireland's corporate tax system is a "worldwide tax" system, with no thin capitalisation rules, and a holding company regime for tax inversions to Ireland. Ireland has the most U.S. corporate tax inversions, and Medtronic (2015) was the largest U.S. tax inversion in history.

Ireland's corporate tax system has base erosion and profit shifting (BEPS) tools, such as the Double Irish (used by Google and Facebook), the Single Malt (used by Microsoft and Allergan), and the Capital Allowances for Intangible Assets (CAIA) (used by Accenture, and by Apple post Q1 2015); in June 2018, academics showed they are the largest global BEPS tools. In a phenomenon sometimes referred to as "leprechaun economics", Apple's 2015 restructure of its BEPS tools inflated Irish GDP by 34.4%. The standard CGT rate is 33% in respect of disposals made from midnight on 7 December 2013. The rate of tax for disposals made in previous years is less: details can be obtained from the Revenue Commissioners.

A person neither resident nor ordinarily resident in Ireland is only liable to CGT on gains from:

A person purchasing a chargeable asset for over €500,000 must withhold 15% of the price and pay it to Revenue unless the Revenue has issued a CG50A certificate to the vendor prior to the purchase. The certificate CG50A is issued by the Revenue on application, provided that either the vendor is resident in Ireland, no CGT is payable on the disposal, or the CGT has already been paid. From 1 January 2014, DIRT is charged at 41% (was 33% in 2013) for payments made annually or more frequently. The tax is deducted by the bank or other deposit-taker before the interest is paid. DIRT will be charged at 36% (in 2013, lower rates in previous years) for payments made less frequently. This higher D.I.R.T. rate has been abolished, as and from 1 January 2014, and the D.I.R.T. rate of 41% applies to any interest paid or credited on these deposits on or after 1 January 2014. or may submit an appropriate form to their banks or financial institutions to have interest paid free of DIRT.

DIRT does not apply to:

On residential property

First time buyers (i.e. those who have not purchased a house before in Ireland or in any other jurisdiction) are exempt. One may also qualify as a first-time buyer if newly divorced or separated. New owner-occupied houses or apartments with a floor area of less than 125 m² may also be exempt, and new owner-occupied houses with a floor area larger than this are assessed based on the greater of the cost of the site or quarter of the total cost of the house and site. In all cases, the rates exclude VAT.

For deeds executed on or after 8 December 2010 the rates of stamp duty are:.

• the first €1,000,000: 1%,
• excess over €1,000,000: 2%,

On non-residential property

Since 14 October 2008, conveyances of non-residential property are charged at an increasing rate starting at 0% for a property under the value of €10,000 rising to 6% for transactions over €80,000.

Exemptions and reliefs

Transfers between spouses are exempt from stamp duty, as are property transfers as a result of a court order in relation to a divorce. The stamp duty rate is halved for transfers between other blood relatives.

Bank cards and cheques

Credit card and charge card accounts are subject to a €30 annual duty. Automated teller machine and debit cards are subject to €2.50 each annually. Cards which perform both functions are subject to the tax twice, i.e. €5 total. Cards that are unused in the entire year are not chargeable. The credit card tax is applied per account, but the ATM and debit card charge is per card. In each case, where an account is closed during the year, there is an exemption from double taxation.

Cheques (technically, all bills of exchange) incur a €0.50 tax, generally collected by the bank on issue of each chequebook. Non-life Insurance policies are subject to a 3% levy and Life assurance policies are subject to a 1% levy on premiums from 1 June 2009.

Capital acquisitions tax (CAT)

Capital acquisitions tax is charged to the recipient of gifts or inheritances, at the rate of 33% above a tax-free threshold. Gifts and inheritances are gratuitous benefits; the difference is that an inheritance is taken on death and a gift is taken other than on death. Tax is payable within four months of the date of the gift; an interest charge applies to late payments.

• €335,000 (Group A) where the beneficiary's relationship to the disponer is: son or daughter, minor child of a predeceased son or daughter. Child includes a foster child (since 6 December 2000) and an adopted child (since 30 March 2001).
• €32,500 (Group B), where the beneficiary's relationship to the disponer is: lineal ancestor (e.g. parent), lineal descendant (not within A; e.g. granddaughter), brother or sister, nephew or niece.
• €16,250 (Group C) where the beneficiary's relationship to the disponer is: cousin or stranger.

For gifts and inheritances taken on or after 5 December 2001, only prior benefits received since 5 December 1991 from the same beneficiary within the same group threshold are aggregated with the current benefit in computing tax payable on the current benefit.

An inheritance, but not a gift, taken by a parent from his or her child is treated as group A, where it is an immediate interest (but not a life interest) in property. In certain circumstances, the beneficiary may take the place of his/her deceased spouse for the purpose of determining the applicable group where that spouse died before the disponer and was a nearer relative to the disponer.

Discretionary trust tax

Assets placed in discretionary trusts are subject to:

• a once-off charge of 6%, and
• an annual charge of 1%.

The charges must be paid within three months of the "valuation date", which may be the date the trust was set up, the date of death of the settlor, the earliest date on which the trustees could retain the trust property, the date on which the trustees retained the trust property, or the date of delivery of the trust property to the trustees.

Withholding taxes

Several charges described as taxes are not, in the literal sense, actual taxes, but withholdings from certain payments made. In each case, the payer withholds the relevant percentage and pays it to Revenue. The recipient is still liable for tax on the full amount, but can set the withholding against his overall tax liability. If the amount withheld is less than the tax payable, the recipient is still liable for the difference, and if the amount withheld exceeds the tax payable, the recipient can set it off against other tax due, or obtain a refund. This contrasts with DIRT, which, while a withholding tax, discharges the entire tax liability of the recipient.

Relevant Contracts Tax

Relevant Contracts Tax (RCT) is a withholding regime applied to contractors in the forestry, construction, and meat processing sectors where tax non-compliance levels have historically been high.

On 13 December 2011, the Minister for Finance signed the Commencement Order for the new electronic RCT system which was introduced on 1 January 2012. All principal contractors in the construction, forestry and meat processing sectors are obliged to engage electronically with Revenue. Under the new RCT system, a principal contractor must provide Revenue with details of the contract and the subcontractor. It must also notify Revenue of all relevant payments online before payment is made. Revenue will respond to the payment notification with a deduction authorisation setting out how much tax, if any, must be withheld. The rates are currently set at 0%, 20% or 35%. This deduction authorisation is sent electronically to the principal contractor. The principal must provide a copy or details of the deduction authorisation to the subcontractor if tax has been deducted. The subcontractor can set off the amount deducted against any tax he is liable to pay, or reclaim the difference where the deduction exceeds the amount of tax.

Since September 2008, the subcontractor no longer charges or accounts for VAT on supplies of construction services to which RCT applies. Instead, the principal contractor must account for the VAT to Revenue (although he will generally be entitled to an input credit for the same amount). This system is referred to as the VAT reverse charge.

Dividend Withholding Tax

Dividend Withholding Tax is deducted at the rate of 20% from dividends paid by Irish companies. It can be set off against income tax due, or reclaimed where the recipient of the dividend is not liable to tax.

Professional Services Withholding Tax

Professional Services Withholding Tax (PSWT) is deducted at the rate of 20% from payments made by government bodies, health boards, state bodies, local authorities, and the like, from payments made for professional services. Professional services include medical, dental, pharmaceutical, optical, aural, veterinary, architectural, engineering, quantity surveying, accounting, auditing, finance, marketing, advertising, legal, and geological services, as well as training services supplied to FÁS It can be deducted from the tax ultimately payable by the service provider, or where the provider is non-resident or exempt from tax, reclaimed. The levy is currently 22 cents per plastic bag.

s

The levy does not apply to:

Vehicles are assessed under five categories for VRT, depending on the type of vehicle.

• Category A includes cars, jeeps, and minibuses having fewer than 12 seats, not including the driver. The tax chargeable is based on carbon dioxide emissions per kilometre, ranging from 14% of open market selling price (for vehicles emitting under 120g CO₂/km) to 36% of open market selling price (for vehicles emitting over 226g CO₂/km). The charge for 2009 was payable in September, but in subsequent years, it is payable in March.

The charge applies to "residential properties", which includes a house, maisonette, flat, or apartment, but excludes:

• Buildings which are of scientific, historical, architectural or aesthetic interest and are open to the public, subject to approval of the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media and Revenue
• A building which is part of the trading stock of a business and has never been used as a dwelling, nor has any income been derived from it
• A building let by a minister of the government, a housing authority, or the HSE
• A building let by a body approved by a housing authority
• A building let to a housing authority, or to the HSE
• A building subject to commercial rates

Additionally, the following persons are exempt from paying the charge in respect of the building or buildings in question:

• A person occupying a building as his sole or main residence (which includes a person who so occupies part of a building and claims rent-a-room relief on the remainder)
• A charity or a discretionary trust
• A divorced or separated person whose former spouse lives in the building
• An incapacitated person living in a place which he does not own (e.g. a nursing home)
• A person who allows a relative to reside, free of rent, in a building within 2 kilometres of his own residence (vernacularly called a "granny flat")

If the charge is unpaid, it has the effect of a charge in favour of the local council against the property.

A person who moves house is not liable to the charge in respect of either of the houses that year.

Motor tax

Motor tax, payable to the local council where the owner lives, arises when a car or other motor vehicle is used on a public road. A circular receipt, known colloquially as a tax disc, is issued on payment and must be displayed in the front of the vehicle. Certain vehicles, including state-owned vehicles, fire engines, and vehicles for disabled drivers are exempt from motor tax.

Motor tax may be paid for three, six, or 12 months, although paying annually is cheaper.

The tax for private cars first registered from July 2008 is calculated on the basis of carbon dioxide emissions; for cars registered before that, the rate depends on engine displacement. Goods vehicle tax rates are determined based on gross vehicle weight, the tax for buses is based on the number of seats, Audits conducted in 2025 resulted in an extra €591m in taxes.

Tax avoidance is a legal process where one's financial affairs are arranged so as to legitimately pay less tax. In some cases the Revenue will pursue individuals or companies who avail of tax avoidance; however their success here is limited because tax avoidance is entirely legal.

The areas where tax evasion can still be found are businesses that deal in a lot of cash. The trades, small businesses, etc., will sell goods and perform services while accepting cash for the good/service. The buyer will avoid paying VAT at 21% and the seller does not declare the monies for Income Tax. Revenue perform random audits on businesses to discourage and punish this. Businesses are regularly taken to court for tax evasion. Revenue claim a business will be audited roughly every seven years.

Other methods have also been employed by government to combat tax evasion. For example, the introduction of a Taxi Regulator and subsequent regulations for the taxi industry has meant that the opportunities for taxi drivers to avoid declaring cash income have dwindled. By law, taxi drivers must now issue an electronic receipt for each fare, effectively recording their income.

List of tax defaulters

Since 1983, the Revenue Commissioners have published a quarterly list of tax defaulters. The list includes the name, address and settlement details for every case where a settlement exceeded €50,000, and where the taxpayer did not meet other criteria such as making a qualifying disclosure.

In April 2023, The Irish Times reported that the Revenue Commissioners were examining the implications for the list of a ruling by the European Court of Human Rights. the grand jury of the court (led by Irish judge Síofra O'Leary) ruled that publication of L.B.'s default and of his personal details was a breach of his right to privacy under Article 8 of the European Convention on Human Rights. The Tánaiste Micheál Martin said that the finding would have to be studied in detail.