Tax Example: Rent
October 23, 2018
Grant Thornton Ireland is a member firm of Grant Thornton International. Grant Thornton International is not a worldwide partnership. Member firms of the international organization are independently owned and operated.
1 The property is jointly owned by husband and wife. Currently, lettings of less than ten years are exempt from VAT. It is possible to waive this exemption and if a ´waiver´ is applied for, VAT should be charged at 23% on the monthly rents.
2 Rental income paid to a non-resident landlord is subject to 20% withholding tax. This tax is then available as a tax credit when the couple files their annual income tax return.
3 Estimated values. Income-generating expenses are all deductible from the gross rental income.
4 Capital allowances may be available on the cost of any fixtures and fittings provided with the building and the deduction is given over eight years (e.g. 12.5% per annum).
5 These income tax rates are applicable to a married couple with two incomes. A different set of tax bands is applicable for the following classification of taxpayers: single person, married couple with one income, one-parent family.
INCOMTE TAX 2015 FOR MARRIED PERSONS, SPOUSE WITH INCOME
|TAXABLE INCOME, IRR (US$)||TAX RATE|
|Up to € 69,100||20%|
|Over € 69,100||40% on all income over €69,100|
6 The 2% health levy is levied on the taxable income over €22,880 of each taxpayer. Once this threshold is exceeded, the health levy is applied on the whole taxable income.