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Taxes Consolidation Act, 1997 (Number 39 of 1997)

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531B Charge to income levy.

(1) With effect from 1 January 2009, there shall be charged, levied and paid, in accordance with the provisions of this Part, a tax to be known as “income levy” in respect of the income specified in paragraphs (a) and (b) of the Table to this subsection.

TABLE

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(a) The income described in this paragraph, to be known as “relevant emoluments”, is emoluments to which Chapter 4 of Part 42 applies or is applied, other than social welfare payments and similar type payments and excluded emoluments.

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(a) The income described in this paragraph, to be known as “relevant emoluments”, is emoluments to which Chapter 4 of Part 42 applies or is applied—

(i) other than social welfare payments and similar type payments,

(ii) other than excluded emoluments,

(iii) disregarding expenses, in respect of which an employee may be entitled to relief from income tax, which fall within Regulation 10(3) of the PAYE Regulations,

(iv) having regard to any relief under section 201(5)(a) and paragraphs 6 and 8 of Schedule 3, and

(v) excluding emoluments of an individual who is resident in a territory with which arrangements have been made under subsection (1)(a)(i) or (1B)(a)(ii) of section 826 in relation to affording relief from double taxation, where those emoluments are the subject of a notification issued under section 984(1).

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(b) [2]>The income described in this paragraph, to be known as “relevant income”, is income from all sources, other than relevant emoluments, social welfare payments and similar type payments and excluded emoluments, as estimated in accordance with the Income Tax Acts and—<[2] [2]>The income described in this paragraph, to be known as “relevant income”, is income, without regard to any amount deductible from or deductible in computing total income, from all sources as estimated in accordance with the Tax Acts, other than relevant emoluments, social welfare payments and similar type payments and excluded emoluments, and—<[2]

(i) as if sections 140, 141, 142, 143, 195, 231, 232, 233, 234 and 664 were never enacted,

(ii) without regard to any deduction—

(I) in respect of double rent allowance under section 324(2), 333(2), 345(3) or 354(3),

(II) under section 372AP, in computing the amount of a surplus or deficiency in respect of rent from any premises,

(III) under section 372AU, in computing the amount of a surplus or deficiency in respect of rent from any premises,

(IV) under section 847A, in respect of a relevant donation (within the meaning of that section), or

(V) under section 848A, in respect of a relevant donation (within the meaning of that section),

(iii) excluding gains, income or payments to which any of the following provisions apply:

(I) Chapter 4 of Part 8;

(II) Chapter 5 of Part 8;

(III) Chapter 7 of Part 8;

(IV) Chapter 5 of Part 26;

(V) Chapter 6 of Part 26;

(VI) Chapter 1A of Part 27;

(VII) Chapter 4 of Part 27,

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and

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(iv) having regard to a deduction for any payment to which section 1025 applies, made by an individual pursuant to a maintenance arrangement (within the meaning of that section) relating to the marriage for the benefit of the other party to the marriage, unless section 1026 applies in respect of [4]>such payment.<[4] [4]>such payment,<[4]

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(iva) having regard to any reduction arising by virtue of section 825A, and

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(ivb) having regard to any allowances due under section 659 arising from the obligations under Council Directive 91/676/EEC of 12 December 19911 concerning the protection of waters against pollution caused by nitrates from agricultural sources.

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(v) disregarding expenses, in respect of which an employee may be entitled to relief from income tax, which fall within Regulation 10(3) of the PAYE Regulations,

(vi) having regard to any relief arising under subsection (5)(a) of section 201, and paragraphs 6 and 8 of Schedule 3 in respect of payments chargeable to tax under section 123, and

(vii) excluding relevant emoluments of an individual who is resident in a territory with which arrangements have been made under section 826(1)(a)(i) in relation to affording relief from double taxation, where those emoluments are the subject of a notification issued under section 984(1).

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(2) The income levy shall not be payable, for a year of assessment, by an individual who—

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(a) proves to the satisfaction of the Revenue Commissioners that his or her aggregate income for the year of assessment does not exceed €18,304,

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(a) subject to subsection (3), proves to the satisfaction of the Revenue Commissioners that his or her aggregate income for the year of assessment does not exceed €15,028,

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(b) by virtue of section 45 of the Health Act 1970 or Council Regulation (EEC) No. 1408/711 of 14 June 1971 has full eligibility for services under Part IV of that Act, or

(c) following receipt of a claim made in a manner approved or provided by the Revenue Commissioners, proves to their satisfaction that his or her aggregate income for the year of assessment does not exceed €20,000 and who has achieved the age of 65 years or over at any time during that year of assessment.

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(3) For the purposes of determining an individual’s aggregate income for the year of assessment 2009 for the purposes of subsection (2)(a), any payment of relevant emoluments from which income levy was not deducted by an employer, made in the period from 1 January 2009 to 30 April 2009, to which the appropriate portion of €18,304 was applied in that period, shall be disregarded.

(4) (a) This subsection applies to emoluments paid to an individual in the period 1 January 2009 to 30 April 2009 in the form of any taxable exgratia payment made on the occasion of the redundancy of that individual, which is chargeable to income tax under the provisions of section 123.

(b) Notwithstanding any other provision of this Part and subject to paragraph (c), to the extent that emoluments are emoluments to which this subsection applies, those emoluments—

(i) shall be charged to income levy for the year of assessment 2009 at the rate of—

(I) 1 per cent on the first €100,100 of such emoluments,

(II) 2 per cent on the next €150,020 of such emoluments, and

(III) 3 per cent on the remainder of such emoluments,

and

(ii) shall not be reckoned in computing relevant emoluments for that year for any other purpose of this Part.

(c) This subsection shall not apply to emoluments paid to an individual if that individual so elects by notice in writing to an inspector after the end of the year of assessment 2009.

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Footnotes

1OJ No. L149, 5.7.1971, p.2

1OJ No. L375, 31.12.1991, p.1

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[1]

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Inserted by F(No.2)A08 s2(a). This section is deemed to have come into force and takes effect as on and from 1 January 2009.

[2]

[-] [+]

Substituted by FA09 s2(1)(b). This section applies for the year of assessment 2009 and subsequent years of assessment.

[3]

[-]

Deleted by FA09 s2(1)(c). This section applies for the year of assessment 2009 and subsequent years of assessment.

[4]

[-] [+]

Substituted by FA09 s2(1)(d). This section applies for the year of assessment 2009 and subsequent years of assessment.

[5]

[+]

Inserted by FA09 s2(1)(e). This section applies for the year of assessment 2009 and subsequent years of assessment.

[6]

[-] [+]

Substituted by FA09 s2(1)(f). This section applies for the year of assessment 2009 and subsequent years of assessment.

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[+]

Inserted by FA09 s2(1)(g). This section applies for the year of assessment 2009 and subsequent years of assessment.

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[-] [+]

Substituted by FA10 s3(1)(a). Applies as respects for the year of assessment 2009 and subsequent years.

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Inserted by FA10 s3(1)(b). Applies as respects for the year of assessment 2009 and subsequent years.

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Inserted by FA10 s3(1)(c). Applies as respects for the year of assessment 2010 and subsequent years.

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[-]

Deleted by FA10 s3(1)(d). Applies as respects for the year of assessment 2009 and subsequent years.