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Ireland: Personal Taxation

Introduction

In Ireland the main tax on individuals is income tax. There is also capital gains tax, capital acquisitions tax (which includes inheritance tax), rates (property taxes) and stamp duties on transfers of various types of property. As a member state of the EU, Ireland levies VAT. As of January 1, 2012, the VAT rate is 23%, up from 21% previously.

In January, 2004, then Finance Minister Charlie McCreevy signed an Act to incorporate the provisions of the European Savings Tax Directive into Irish law. Although the Directive itself did not become fully effective until July 1st 2005, the European Communities (Taxation of Savings Income in the Form of Interest Payments) Regulations 2003 required domestic banks to establish the identity and residence of beneficial owners of all new bank accounts opened in Ireland from January 1st 2004.

Irish banks are now obliged to pass on details of savings income for taxation purposes to the Revenue Commission who are tasked with passing this information on to the tax authorities of the EU member state where the customer resides.

 

 

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