Taxes in Ireland

Ireland’s Individual and Corporate Tax Rates for 2015
Every country on the world has a different way of taxing their citizen’s, including Ireland. They have a simple tax system that is free from constant fluctuation that can occur in countries that constantly change their tax rates.

Ireland has undergone some controversy in regards to their taxation system, which is uniquely simple. This article will discuss information regarding their taxation of both individuals and corporations.

Individual Taxes

Taxation for individuals in Ireland is progressive in the sense that those with very low wages pay very little taxes, and those with mid to high earnings pay the majority of the taxes. Those individuals of the country in the first and lowest tax bracket have wages between zero and 36,400 pounds for their annual salary.

They pay a tax rate of 20%. The second tax bracket is the only other tax bracket for individual taxes. Those receiving annual earnings over 36,400 pounds have a higher tax rate of 41%. This is the highest rate of tax allowed for individuals. Ireland gets the majority of their tax income for the country from excise taxes and sales tax received from purchases, not tax received from individuals.

Corporate Taxes
Corporation taxes in Ireland are charged to companies on their profits. They have two different tax rates for corporations. The first is a corporate income tax. It is 12.5%. It has been that rate for several years now. It is not fluctuating like in some countries. The second is a non-trading income tax which is 25%. The tax controversy mentioned before is in these tax rates.

Ireland Tax Rates for 2015The individuals of the country say that them having to pay a much higher tax rate than corporations who earn so much more than them, doesn’t seem quite fair. Other countries disagree with the rate as well. They say it gives Ireland an unfair advantage over other countries in trading because they believe Ireland gets more trading due to low rates they charge and the tax breaks they offer..

They think that Ireland should raise the amount of tax that their corporations should have to pay. The United Nations is one group who protest the tax rate calling it “anti-social to other developing countries”. Some countries find the simplicity of Ireland’s tax system perfect, and they have chosen to adopt a system similar to it. New Ireland corporations pay 12.5% for what is considered active income. This is income from service they have performed. It includes wages and tips received. Any passive income they earn is taxed at a higher rate of 25%. Passive income is income that takes little effort to obtain it. Income Ireland corporations receive from mining operations, land deals, and petroleum are taxed at the higher rate of 25% as well. Any capital gains received have a tax rate of 33%.