In Ireland, if you do not have a limited liability company then there are two types of deductions that apply, PRSI and PAYE.

PRSI contributions are paid into a special Social Insurance Fund to contribute towards the cost of social welfare benefits and pensions. The first €100 per week is exempt from PRSI, as are any contributions up to 15% of your net relevant earnings that you pay into an occupational pension fund.

You pay a rate of 4.5% PRSI on anything above €100 per week, up to €280 per week. A health contribution at 2% is also payable on your entire salary.

If you are paid through an Irish payroll, you must pay PAYE and your employer is obliged to deduct it from your salary (unless your earnings are lower than the PAYE entry-level) and pay it to the Revenue Commissioners. If you are new to Ireland or have not worked here since the start of the current tax year (6 April of any given year) then you need to complete Form 12A, which is available from your employer or any tax office.

Tax rates on taxable income (i.e. after you have deducted your allowances) are:

  • 20% on the first €33,800 for a single person,
  • 20% on the first €42,800 for a married couple with two incomes (the partner with the lowest salary is taxed 20% on the first €24,800),
  • 20% on the first €42,800 for a married couple with one income.

The higher rate of 40% tax is payable on the balance.

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