CA Proficiency 2 REPUBLIC OF IRELAND REPUBLIC OF IRELAN TAXATION REFERENCE MATERIAL FOR TAX YEAR 2015

Transcription

1 CA Proficiency 2 PAPER 4a TAXATION II REPUBLIC OF IRELAND SUMMER 2016 (Tuesday 21 June 2016: 9:30 am 1:20 pm) 2 PAPER 4 - TAXATIOI REPUBLIC OF IRELAN TAXATION REFERENCE MATERIAL FOR TAX YEAR 2015 TAXATION REFERENCE MATERIAL (RoI) ACADEMIC YEAR 2015/2016 Page 1 of 17

2 TABLE OF CONTENTS Table 1 Income Tax Rates and Income Tax Credits 3 Table 2 Income Tax Allowances and Reliefs 4 Table 3 Income Tax Exemption Limits 4 Table 4 Mortgage Interest Relief 5 Table 5 Pension Contributions 6 Table 6 Preferential Loans 6 Table 7 Car Benefit in Kind 6 Table 8 Universal Social Charge 7 Table 9 PRSI 8 Table 10 Capital Allowances and Restricted Cost for Motor Lease Expenses Restriction 9 Table 11 Local Property Tax 10 Table 12 VAT 11 Table 13 Corporation Tax Rates 12 Table 14 Stamp Duty Rates 12 Table 15 Capital Gains Tax Rates and Annual Exemption 12 Table 16 Capital Gains Tax Indexation Factors 13 Table 17 Capital Acquisitions Tax Rates and Exemption Thresholds 14 Table 18 Capital Acquisitions Tax Limited Interest Factors 15 able 13 Corporation Tax Rates 12 Table 14 Stamp Duty Rates 12 Table 15 Capital Gains Tax Rates and Annual Exemption 12 Table 16 Capital Gains Tax Indexation Factors 13 Table 17 Capital Acquisitions Tax Rates and Exemption Thresholds 14 Table 18 Capital Acquisitions Tax Limited Interest Factors 15 TAXATION REFERENCE MATERIAL (RoI) ACADEMIC YEAR 2015/2016 Page 2 of 17

3 TABLE 1 INCOME TAX RATES AND INCOME TAX CREDITS FOR 2015 RATES Single/Widowed/ Surviving Civil Partner With Qualifying Children Single/Widowed/ Surviving Civil Partner without Qualifying Children Married Couple/Civil Rate Rate Partners Rate First 37,800 20% First 33,800 20% First 42,800/ 67, % Balance 40% Balance 40% Balance 40% 1 Depending on personal circumstances of a married couple/civil partners CREDITS (NON-REFUNDABLE) Tax Credit Single person 1,650 Married couple/civil partners 3,300 Widowed person/surviving civil partner (year of bereavement) 3,300 Widowed person/surviving civil partner tax credit no dependent children 2,190 Single Person Child Carer Tax Credit 1,650 Widowed parent/surviving civil partner tax credit Year 1 after the year of bereavement 3,600 Year 2 after the year of bereavement 3,150 Year 3 after the year of bereavement 2,700 Year 4 after the year of bereavement 2,250 Year 5 after the year of bereavement 1,800 Employee tax credit 1,650 Age tax credit single/widowed/surviving civil partner 245 Age tax credit married/civil partners 490 Incapacitated child tax credit 3,300 Dependent relative (Maximum) 70 Dependent relative income limit 13,904 Home carer s credit income limit 5, Blind person 1,650 Both spouses/civil partners blind 3,300 Rent tax credit (Maximum) 1 : Single person aged under Single person aged 55 or over 240 Married couple/civil partners aged under Married couple/civil partners aged 55 or over 480 Third level education fees (Maximum) 2 : Full time course 800 Part time course 1,100 1 The tax credit is equal to the lower of the actual rent paid at the standard rate or the specified limit at the standard rate of tax. The tenant must have been paying rent under a tenancy on 7 December There is a maximum level of qualifying fees, per academic year, of 7,000 per student, per course. The claim is subject to the first 3,000 (full-time) or 1,500 (part-time) being disallowed (per claim, not per course). TAXATION REFERENCE MATERIAL (RoI) ACADEMIC YEAR 2015/2016 Page 3 of 17

4 TABLE 2 INCOME TAX ALLOWANCES AND RELIEFS FOR 2015 Deduction for employed person taking care of incapacitated person (Maximum) 75,000 Provision of childcare services Income limit 15,000 Rent - a- room relief ( Maximum) 12,000 TABLE 3 INCOME TAX EXEMPTION LIMITS FOR PERSONS AGED 65 AND OVER FOR 2015 Single / Widowed/Surviving Civil Partner 18,000 1 Married/Civil Partners * 36, Dependent children: Increase exemption by 575 for each of first two, and by 830 for each additional child. *Marginal relief tax rate 40% under 36,000. The marginal relief tax rate only applies to persons 65 years of age or over. TAXATION REFERENCE MATERIAL (RoI) ACADEMIC YEAR 2015/2016 Page 4 of 17

5 TABLE 4 MORTGAGE INTEREST RELIEF FOR 2015 Interest Ceilings for Non-First Time Buyers Rate of Relief 1 Maximum Relief Ceiling Single 15% 450 Married/widowed/civil partners/surviving civil partner 15% 900 Interest Ceilings for First Time Buyers Relief Year 1 & 2 Relief Year 3, 4 & 5 Relief Year 6 & 7 Rate of Maximum Rate of Maximu Rate of Maximum Ceiling Relief 1 Relief Relief 1 m Relief Relief 1 Relief Single 25% 22.5% 20% 2,000 Married/widowed/civil partners/surviving civil partner 25% 22.5% 20% 4,000 1 Rate of relief is increased to 30% of the interest paid for the tax years for loans taken out to buy a first principal private residence on or after 1 January 2004 and before 31 December Relief only applies to interest on qualifying loans taken out on or after 1 January 2004 and before 31 December 2012 and to loans taken out in 2013 to construct a home on a site where the site was purchased in 2012 or where loan approval was given in 2012 for a loan to repair develop or improve a home and the loan was taken out partly in 2012 and partly in TAXATION REFERENCE MATERIAL (RoI) ACADEMIC YEAR 2015/2016 Page 5 of 17

6 TABLE 5 PENSION CONTRIBUTIONS The maximum amount on which tax relief may be claimed in 2015 in respect of qualifying premiums is as follows: Age % of Net Relevant Earnings 1 Under 30 years of age 15% 30 to 39 years of age 20% 40 to 49 years of age 25% 50 to 54 years of age 30% 55 to 59 years of age 35% 60 years and over 40% 1 The earnings cap for 2015 on net relevant earnings is 115,000. TABLE 6 PREFERENTIAL LOANS The specified rates for 2015 are: 4% in respect of qualifying home loans 13.5% in respect of all other loans TABLE 7 MOTOR CAR BENEFIT-IN-KIND SCALE FOR 2015 Annual Business Kilometres Cash Equivalent (% of OMV) 24,000 or less 30% 24,001 to 32,000 24% 32,001 to 40,000 18% 40,001 to 48,000 12% 48,001 and over 6% TAXATION REFERENCE MATERIAL (RoI) ACADEMIC YEAR 2015/2016 Page 6 of 17

7 TABLE 8 UNIVERSAL SOCIAL CHARGE ( USC ) FOR 2015 EMPLOYMENT INCOME The rates of Universal Social Charge are (where gross income is greater than 12,012 per annum): Rate of USC Annual Income Monthly Income Weekly Income 1.5% First 12,012 First 1,001 First % 12,012-17,576 1,002-1, % 17,576-70,044 1,465-5, ,347 8% Balance Balance Balance Exempt Categories: Where an individual's total income for a year does not exceed 12,012; All Department of Social Protection payments; Income already subjected to DIRT. SELF ASSESSED INDIVIDUALS The rates of Universal Social Charge are (where gross income is greater than 12,012 per annum): Aged 70 and over with income of 60,000 or less Full medical card holder with income of 60,000 or less (regardless of age) Income up to 12, % 1.5% Income above 12, % 3.5% An additional USC charge of 3% is payable by individuals on self assessed income (excluding employment income) in excess of 100,000 in a year, regardless of age. Surcharge on use of Property Incentives There is also an additional USC surcharge of 5% on investors with gross income greater than 100,000 where certain property tax reliefs have been used. TAXATION REFERENCE MATERIAL (RoI) ACADEMIC YEAR 2015/2016 Page 7 of 17

8 TABLE 9 PRSI 2015 EMPLOYEES Employee s Income chargeable as below: Employee rate Employers rate Income of per week Nil 8.5% Income of > 352 not greater than 356 per week 4% 8.5% Income greater than 356 per week 4% 10.75% SELF EMPLOYED All Income is subject to PRSI at 4% 1. 1 Individuals in receipt of income of 5,000 or less in 2015 will not be subject to PRSI. A minimum contribution of 500 is required. For those with an annual self-employed income of in excess of 5,000 but who have no net liability to tax, the minimum contribution is 310. TAXATION REFERENCE MATERIAL (RoI) ACADEMIC YEAR 2015/2016 Page 8 of 17

9 TABLE 10 CAPITAL ALLOWANCES AND RESTRICTED COST FOR MOTOR LEASE EXPENSES FOR 2015 RESTRICTED COST OF PASSENGER MOTOR VEHICLE FOR CAPITAL ALLOWANCES AND MOTOR LEASES EXPENSES RESTRICTION PURPOSES From 1 January ,000 From 1 January ,000 From 1 January ,000 Restricted Cost for Motor Vehicles bought on/after 1 July 2008 CARBON EMISSIONS CATEGORY Category A Category B/C Category D/E Category F/G 0-120g/km g/km g/km 191g/km+ Category A-C Category D-E Category F- G Use the specified amount regardless of cost Two steps to calculate the limit: 1. Take the lower of the specified limit or cost 2. Limit is 50% of this amount No allowance is available. No restrictions apply to; commercial vehicles and cars used for purposes of taxi business or car hire business. PLANT AND MACHINERY Expenditure incurred on or after 4 December 2002: Plant and machinery Cars other than those used as a taxi or in car hire business Cars used in taxi and car hire business 12.5% straight line 12.5% straight line 40% reducing balance basis INDUSTRIAL BUILDINGS Expenditure incurred on or after 1 April % straight line TAXATION REFERENCE MATERIAL (RoI) ACADEMIC YEAR 2015/2016 Page 9 of 17

10 TABLE 11 LOCAL PROPERTY TAX VALUATION TABLE Local Authority rate reduction Valuation band number Valuation band Standard Rate 1.5% 3% 5% 7.5% 10% 15% 01 0 to 100, ,001 to 150, ,001 to 200, ,001 to 250, ,001 to 300, ,001 to 350, ,001 to 400, ,001 to 450, ,001 to 500, ,001 to 550, ,001 to 600,000 1,035 1,019 1, ,001 to 650,000 1,125 1,108 1,091 1,068 1,040 1, ,001 to 700,000 1,215 1,196 1,178 1,154 1,123 1,093 1, ,001 to 750,000 1,305 1,285 1,265 1,239 1,207 1,174 1, ,001 to 800,000 1,395 1,374 1,353 1,325 1,290 1,255 1, ,001 to 850,000 1,485 1,462 1,440 1,410 1,373 1,336 1, ,001 to 900,000 1,575 1,551 1,527 1,496 1,456 1,417 1, ,001 to 950,000 1,665 1,640 1,615 1,581 1,540 1,498 1, ,001 to 1,000,000 1,755 1,728 1,702 1,667 1,623 1,579 1,491 Property valued at 1.2m 2,300 2,265 2,231 2,185 2,127 2,070 1,955 Property valued at 1.5m 3,050 3,004 2,958 2,897 2,821 2,745 2,592 Local authorities who reduced the LPT rate for 2015 ** LPT Rate reduced by Local Authority 1.5% Louth County Council 3% Limerick City and County Council Longford County Council Mayo County Council Westmeath County Council 7.5% Kildare County Council 10% Cork County Council Cork City Council 15% Clare County Council Dublin City Council D/L Rathdown County Council Fingal County Council South Dublin County Council Wicklow County Council TAXATION REFERENCE MATERIAL (RoI) ACADEMIC YEAR 2015/2016 Page 10 of 17

11 TABLE 12 VAT RATES 2015 Standard 23% Reduced rate 13.5% Second reduced rate 9% Flat rate for farmers addition* 5.2% Livestock, live greyhounds and the hire of horses 4.8% *applies to sale of agricultural produce and services by non-registered farmers to VAT registered persons. The main zero-rated goods and services are: Exported goods (export, in this regard, means export outside the EU), most food and drink of a kind used for human consumption, sea going ships of more than 15 tons, oral medicine, fertilizers, animal feed other than pet food, certain printed books and booklets, most clothing and footwear appropriate to a child under 11 years, seeds and plants. The main exempted activities are: Certain lettings of immovable goods, medical, dental and optical services, insurance services, betting, funeral services, transport of passengers and their baggage, educational services, certain banking services, green fees charged by members-owned golf clubs. The main goods and services liable at the reduced rate are: Immovable goods, services consisting of the development of immovable goods, concrete and concrete goods,, waste disposal services, repair and maintenance of movable goods, short term hire of cars, boats, general agricultural and veterinary services, fuel for power and heating, electricity, gas, timber, coal, driving instruction. The main goods and services liable at the second reduced rate are: Supply of food and drink (excluding alcohol and soft drinks), hotel lettings, guesthouses, caravan parks, camping sites, admissions to cinemas, theatre, certain musical performances, museums, fairground amusement receipts, hairdressing services. The main goods and services liable at the standard rate are: Applies to all supplies of goods and services by taxable persons, that are not exempt or specifically liable at 0%, 4.8%, 9% or 13.5%. Includes goods such as adult clothing and footwear, office equipment and stationery, drink and certain foods. TAXATION REFERENCE MATERIAL (RoI) ACADEMIC YEAR 2015/2016 Page 11 of 17

12 TABLE 13 CORPORATION TAX RATES FOR 2015 Standard rate 12.5% Higher rate 25% TABLE 14 STAMP DUTY RATES FOR 2015 Rate Shares 1% Residential Property: Consideration up to 1m 1% Excess over 1m 2% Non-Residential Property 2% TABLE 15 CAPITAL GAINS TAX RATES AND ANNUAL EXEMPTION RATES Rate Disposals on or after 6 December % Disposals on or after 7 December 2011 and before 6 December % Disposals on or after 8 April 2009 and before 7 December % ANNUAL EXEMPT AMOUNT FOR ,270 TAXATION REFERENCE MATERIAL (RoI) ACADEMIC YEAR 2015/2016 Page 12 of 17

13 TABLE 16 CAPITAL GAINS TAX INDEXATION TABLES Year of Assessment Multiplier for Disposal in Period Ended in which Expenditure was 5 th April 5 th April 5 th Aprl 5 th April 5 th April 31 st Dec 31 st Dec 31 st Dec Incurred et seq. 1974/ / / / / / / / / / / / / / / / / / / / / / / / / / / et seq TAXATION REFERENCE MATERIAL (RoI) ACADEMIC YEAR 2015/2016 Page 13 of 17

14 TABLE 17 CAPITAL ACQUISITIONS TAX RATES AND EXEMPTION THRESHOLDS RATES Rate Benefits taken on or after 6 December % Benefits taken on or after 7 December 2011 and before 6 December % Benefits taken on or after 8 April 2009 and before 7 December % EXEMPTION THRESHOLDS Group Threshold A B C Benefits taken on or after 6 December ,000 30,150 15,075 Benefits taken on or after 7 December 2011 and before 6 December ,000 33,500 16,750 Benefits taken on or after 8 December 2010 and before 7 December ,084 33,208 16,604 TAXATION REFERENCE MATERIAL (RoI) ACADEMIC YEAR 2015/2016 Page 14 of 17

15 TABLE 18 CAPITAL ACQUISITIONS TAX LIMITED INTEREST FACTORS TABLE A Years of Age Joint Factor Value of an interest Value of an interest in a capital of 1 in a capital of 1 for a male life aged for a female life as in Column 1 aged as in Column TAXATION REFERENCE MATERIAL (RoI) ACADEMIC YEAR 2015/2016 Page 15 of 17

16 TABLE A Contd Years of Age Joint Factor Value of an interest Value of an interest in a capital of 1 in a capital of 1 for a male life aged for a female life as in Column 1 aged as in Column or over TAXATION REFERENCE MATERIAL (RoI) ACADEMIC YEAR 2015/2016 Page 16 of 17

17 Table B (Column 2 shows the value of an interest in a capital of 1 for the number of years shown in column 1) Number of Value Number of Value years years and over END OF DOCUMENT TAXATION REFERENCE MATERIAL (RoI) ACADEMIC YEAR 2015/2016 Page 17 of 17