Accountancy in the Republic of Ireland

>> Employment in the Republic of Ireland

Social Security

The principal social security tax cost in Ireland is Pay Related Social Insurance (PRSI). PRSI is payable by both the employer (10.85%) and the employee (4%).

The employer is responsible for collecting all PRSI contributions, including the employee contribution and paying them to The Revenue Commissioners, together with Pay-As-You-Earn (PAYE) tax deducted from payments made to the employees.

Additional charges for the employee

Universal Social Charge (USC) applies to individuals whose income exceeds €13,000 per annum. The rates of USC are tapered from 1% to 8 %.

The USC is a separate charge to Income Tax and no reliefs are allowable against it.

Employment of foreign staff

A foreign employer who employs personnel to carry out duties in Ireland is responsible for deducting Income Tax from the earnings of each employee and paying this over to the Revenue Commissioners.

There is an exemption from this requirement where:

  • The employee is resident in a country with which Ireland has a double taxation agreement and is not resident in Ireland for tax purposes;
  • There is a genuine foreign employment;
  • The employee is not paid by, or on behalf of, an employer resident in Ireland;
  • The cost of the employment is not borne by a permanent establishment in Ireland of the foreign employer; and
  • The duties of that employment are performed in Ireland for not more than 60 working days in a tax year, and for a continuous period of not more than 60 working days.

Medical

Members of approved private health insurance schemes are entitled to relief in respect of premiums paid under a contract which provides specifically for the payment of actual medical expenses resulting from the sickness of the person, his/her wife/husband/civil partner, child or other dependants.

Relief is granted at the standard rate of tax (20%) and is granted at source and need not be claimed by the taxpayer. The premium paid to the insurer will be reduced by an amount equal to the standard rate of income tax, and the insurer will be repaid the equivalent of the standard rate reduction by the Revenue Commissioners.

Payroll Taxes

Under the PAYE system, the employer is responsible for deducting Income Tax, PRSI and USC from the earnings of each employee and paying this over to the Revenue Commissioners.


Latest version updated 5th April 2019

Country Breakdown

4.773

Million

Population

Euro

Currency

$ 294.1

Billion

GDP

70,273

km2