Information on Taxes in Ireland
 

Information on TAXES and BANKING in Ireland

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.

It is important to ensure that your tax is dealt with properly and that your employer deducts the right amount of tax from your pay. To ensure that this happens, you will need to do two things (as soon as possible):

  • Apply to the Department of Social Protection for a PPS number. This is your individual identification number used for all dealings with Revenue and other government departments. On receipt of this number you should give it to your employer.
  • Apply for a certificate of tax credits by completing a Form 12A (available from your local tax office or to download from www.revenue.ie) and send it in to your local tax office. Your employer can supply any relevant information that you need to complete this form, for example, employer’s PAYE registered number. Revenue will send you a certificate of tax credits and issue a copy of your tax credits to your employer so that the correct deductions of tax can be made from your salary. Your own personal circumstances decide the amount of tax credits you are entitled to. The tax office will then forward you a detailed statement of your tax credits. Your employer will also be notified of your tax credits

 

The amount of tax you pay depends on a variety of factors including your marital status, whether you have children, whether you are in rented accommodation.

Tax credits reduce the amount of income tax that you pay. Under the tax credit system you are entitled to tax credits depending on your personal circumstances, for example, married person’s tax credits, PAYE tax credit, rental accommodation tax credit and medical expenses. For more information go to: www.revenue.ie

The quickest and easiest way to claim tax credits is to use PAYE anytime.
PAYE anytime is an internet system that lets you do business with Revenue electronically 365 days a year. To use PAYE anytime you must register first: www.revenue.ie
Alternately, you can contact Revenue by phoning the PAYE LoCall Service which operates from Monday to Friday. You will need your PPS number to use this service.
Information facilities are also available in certain Revenue offices. Local Enquiry Offices are located in county offices outside Dublin.

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, about your previous employment

Your employer will have to deduct tax on an emergency basis when paying your wages or salary. This means that a larger amount of tax is deducted from your pay than is necessary so you should obtain your tax credit certificate