There are no changes to the income tax rates, band or tax credits.Local Property Tax
With effect from 1 July 2013 a local property tax (LPT) will apply and some of the main features of this tax are as follows:
- Revenue will be responsible for administering and collecting this tax.
- It will operate through a self-assessment system which will require property owners to ascertain the market value of their property. Revenue guidance will be provided or a competent valuer can be used.
- The initial valuation is set until 2016.
- The LPT will be charged at 0.18% of the market value of the property up to €1 million and at 0.25% on amounts above €1 million.
- The market value of the property will be divided into bands with the initial band covering €0 - €100,000. Thereafter bands of €50,000 width will apply up to €1 million. The LPT will be calculated by applying the tax rate to the mid-point of the band. No band will apply where the property is valued at over €1 million.
- There will be an exemption to the end of 2016 for new or previously unused properties which are bought during the period from 1 January 2013 to 31 December 2016.
- First time buyer purchases in 2013 will also be exempt until 2016.
- Returns must be submitted to Revenue by 7 May 2013. There will however be a 3 week extension for electronic filers.
- The household charge ceases with effect from 1 January 2013.
- The NPPR ceases with effect from 1 January 2014.
- Any unpaid arrears together with interest and penalties on the NPPR and the household charge will remain as a charge on the relevant property.
From 1 July 2013 this benefit will be taxable for all claimants.
Charitable donations with effect from 1 January 2013 from all individual doners will be treated the same with the tax relief being repaid to the particular charity at a new blended rate of 31%. An annual donation limit of €1 million will apply.
PRSI & Universal Social Charge
The weekly PRSI exemption of €127 has been removed.
The minimum level of annual PRSI for self-employed contributors will increase from €253 to €500.
From 2013 PRSI will be extended to all other sources of income i.e. dividends, rental income, deposit interest for certain public servants and from 2014 for all employees.
From 1 January 2013 the reduced rate of USC which applies to medical card holders and individuals aged over 70 will be discontinued for anyone with income in excess of €60,000 per annum.
With effect from 1 January 2013 Top Slicing Relief will no longer be available on ex-gratia lump sums where the non-statutory element exceeds €200,000.
The employer rebate for statutory payments which was previously reduced from 60% to 15% will be abolished from 2013.
DIRT & Exit Tax
From 1 January 2013 deposit interest retention tax (DIRT) will be increased to 33%. Exit taxes will be increased to 33% for annual payments and 36% for others.