CP2-TXR-REF-S13 1 07/06/2013

CA Proficiency 2


PAPER 4 TAXATION II
(Republic of Ireland)


Summer 2013 (Tuesday 25
th
June 2013 9.30 a.m. to 1.20 p.m.)













TAXATION REFERENCE MATERIAL

FOR

TAX YEAR 2012








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INCOME TAX RATES

Lone Parents (single,
widowed or surviving civil
partner) with qualifying
children



Rate
Single/Widow(er)/Survivi
ng Civil Partner except
loan parents with
qualifying children



Rate


Married Couple/Civil
Partners



Rate
First 36,800 20% First 32,800 20% First 41,800/65,600* 20%
Balance 41% Balance 41% Balance 41%

* Depending on personal circumstances of a married couple
INCOME TAX CREDITS
Non-
Refundable
Tax Credits

Basic Personal tax credit
Single person 1,650
Married couple/civil partnership 3,300
Widowed person/surviving civil partner (year of bereavement) 3,300
Widowed person/surviving civil partner tax credit no dependant children 2,190
One-parent family tax credit 1,650

Widowed parent/surviving civil partner tax credit


Year 1 after the year of bereavement 3,600
Year 2 after the year of bereavement 3,150
Year 3 after the year of bereavement 2,700
Year 4 after the year of bereavement 2,250
Year 5 after the year of bereavement 1,800

Age tax credit single/widowed/surviving civil partner 245
Age tax credit married/civil partnership 490
Incapacitated Child tax credit 3,300
Dependent relative (Maximum) 70
Dependent relative income limit 13,837 -
Home carers credit 810
Income limit of home carer 5,080
Blind person 1,650
Both spouses blind 3,300
Employee tax credit 1,650

Rent Relief*
Specified Limits for 2012

55 Years
of age or
over


Others
Single.. 2,400 1,200
Married /widowed/civil partner 4,800
* The tax credit is equal to the lower of the actual rent paid at the standard rate or the
specified limit at the standard rate of tax.

Rent - a- room relief ( Maximum) - 10,000











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Fees paid for Third Level Education*

Approved Course Tax Relief (subject to Threshold) Disregard for Tax Relief
2012/2013
Maximum Level of Fees
Full Time 20% of Fees Paid 2,250 5,000
Part Time 20% of Fees Paid 1,125 5,000
* Subject to a maximum limit of 7,000 for academic year 2012/2013

INCOME TAX ALLOWANCE

Employed person taking care of incapacitated person 50,000 (max.)



INCOME TAX EXEMPTION LIMITS 2012


PERSONS under 65 years
Maximum Allowable

Single / Widowed/Surviving Civil Partner 0
Married/Civil Partners 0


PERSONS aged 65 and over
Maximum Allowable

Single / Widowed/Surviving Civil Partner 18,000*
Married/Civil Partners 36,000*


Dependent children: Increase exemption by 575 for each of first two, and by 830 for each additional child.

UNIVERSAL SOCIAL CHARGE (USC)

EMPLOYEES

For the year 1 January 2012 to 31 December 2012:

The rates of Universal Social Charge are (where gross income is greater than 10,036 per annum):

Rate of USC Annual Income Monthly Income Weekly Income
2% Up to 10,036 per annum Up to 836 per month Up to 193 per week
4% Next 5,980 Next 498 Next 115
7% Balance Balance Balance


Persons over 70 years are not liable at the rate of 7% but instead pay at 4%.
Persons who hold a full medical card are not liable at the rate of 7% but instead pay at 4%.

Exempt Categories:

Where an individual's total income for a year does not exceed 10,036;
All Department of Social Protection payments;
Income already subjected to DIRT.





CP2-TXR-REF-S13 4 07/06/2013
SELF EMPLOYED

For the year 1 January 2012 to 31 December 2012:

The rates of Universal Social Charge are:

Under 70 and NOT in receipt of a
Medical Card
Over 70 OR in receipt of a
Medical Card
Up to 10,036 2% 2%
Next 5,980 4%
4%
Next 83,984 7%
Balance (>100,000) * 10% 7%

* There is a surcharge of 3% on individuals who have income from self-employment that exceeds 100,000 in a
year, regardless of age.


Surcharge on use of Property Incentives

There is a surcharge of 5% on investors with gross income greater than 100,000 where certain property tax reliefs have
been used.

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PENSION CONTRIBUTIONS

The maximum amount on which tax relief may be claimed in respect of qualifying premiums are as follows:

Age % of Net Relevant Earnings
Under 30 years of age 15%
30 to 39 years of age 20%
40 to 49 years of age 25%
50 to 54 years of age 30%
55 to 59 years of age 35%
60 years and over 40%



PREFERENTIAL LOAN BENEFIT IN KIND


Specified rate 2009 onwards:

5% in respect of qualifying home loans
12.5% in respect of all other loans

*MOTOR BENEFIT-IN-KIND SCALE

Annual Business Kilometres Cash Equivalent
(% of OMV)
24,000 or less 30%
24,001 to 32,000 24%
32,001 to 40,000 18%
40,001 to 48,000 12%
48,001 and over 6%



CP2-TXR-REF-S13 8 07/06/2013
CAPITAL ALLOWANCES

RESTRICTED COST OF PASSENGER MOTOR VEHICLE FOR CAPITAL ALLOWANCES AND MOTOR
LEASES EXPENSES RESTRICTION PURPOSES


From 1
st
January 2002 ........................... 22,000

From 1
st
January 2006 ........................... 23,000

From 1
st
January 2007 ........................... 24,000


Carbon Emissions Restrictions on Motor Vehicles bought on/after 1 July 2008

Category A Category B/C Category D/E Category F/G

0-120g/km 121-155g/km 156-190g/km 191g/km+

Category A-C Use the specified amount regardless of cost
Category D-E Two steps to calculate the limit:
1. Take the lower of the specified limit or cost
2. Limit is 50% of this amount
Category F- G No allowance is available



PLANT AND MACHINERY

Plant expenditure after 4 December 2002 12.5% straight line
Cars other than those used as a taxi or in car hire business 12.5% straight line

INDUSTRIAL BUILDINGS

Expenditure incurred after 1 April 1992 4% straight line
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VAT

VAT Rate

Standard 23%

Reduced rate 13.5%

Second reduced rate 9%

Flat rate for farmers 5.2%

Livestock 4.8%

The main zero-rated goods and services are:

Exported goods (export, in this regard, means export outside the EU), most food and drink of a kind used for human
consumption, sea going ships of more than 15 tons, oral medicine, fertilizers, animal feed other than pet food, certain
printed books and booklets, most clothing and footwear appropriate to a child under 11 years, seeds and plants.

The main exempted activities are:

Certain lettings of immovable goods, medical, dental and optical services, insurance services, betting, funeral services,
transport of passengers and their baggage, educational services, certain banking services.

The main goods and services liable at the reduced rate are:

Immovable goods, services consisting of the development of immovable goods, concrete and concrete goods,, waste
disposal services, repair and maintenance of movable goods, short term hire of cars, boats, general agricultural and
veterinary services, fuel for power and heating, electricity, gas, timber, coal, driving instruction.

The main goods and services liable at the second reduced rate are:

Supply of food and drink (excluding alcohol and soft drinks), hotel lettings, guesthouses, caravan parks, camping sites,
admissions to cinemas, threatre, certain musical performances, museums, fairground amusement receipts, hairdressing
services.
The main goods and services liable at the standard rate are:

Applies to all supplies of goods and services by taxable persons, that are not exempt or specifically liable at 0%, 5.2%,9% or
13.5%. Includes goods such as adult clothing and footwear, office equipment and stationery, drink and certain foods.

PRSI 2012


EMPLOYEES

Tax Year 2012:
Employees Income chargeable as below: Employee rate Employer's rate
Income up to and including 356 per week 4% 4.25%
Income greater than 356 per week 4% 10.75%

Note 1: Employees are exempt from PRSI on the first 127 per week.

SELF EMPLOYED
Tax Year 2012
All Income is subject to PRSI at 4%. *

* Individuals in receipt of income of less than 5,000 in 2012 will not be subject to PRSI, a minimum contribution of 253 is
required.

CP2-TXR-REF-S13 10 07/06/2013

CORPORATION TAX RATES

Standard Rate Higher Rate
% %

Year ended 31
st
December 2012 .................. 12.5 25



STAMP DUTY RATES

Shares

1%

Residential Property
Instruments executed on or after 8 December 2010


Consideration Rate

First 1,000,000 1%
Balance 2%


Non-Residential Property
Instruments executed on or after 7 December 2011

2%



CAPITAL GAINS TAX RATES


From 3/12/1997
to
From 15/10/2008
to
From
8/4/2009
From
7/12/2011
onwards
14/10/2008 07/04/2009 to 6/12/2011

Rate 20% 22% 25% 30%


CAPITAL GAINS TAX ANNUAL EXEMPT AMOUNT

1,270

CP2-TXR-REF-S13 11 07/06/2013





CAPITAL GAINS TAX INDEXATION TABLES


Year of
Assessment Multiplier for Disposal in Period Ended
in which
Expenditure
was 5
th
April 5
th
April 5
th
Aprl 5
th
April 5
th
April 31
st
Dec 31
st
Dec 31
st
Dec
Incurred 1997 1998 1999 2000 2001 2001 2002 2003 et seq.

1974/75 6.017 6.112 6.215 6.313 6.582 6.930 7.180 7.528
1975/76 4.860 4.936 5.020 5.099 5.316 5.597 5.799 6.080
1976/77 4.187 4.253 4.325 4.393 4.580 4.822 4.996 5.238
1977/78 3.589 3.646 3.707 3.766 3.926 4.133 4.283 4.490
1978/79 3.316 3.368 3.425 3.479 3.627 3.819 3.956 4.148
1979/80 2.992 3.039 3.090 3.139 3.272 3.445 3.570 3.742
1980/81 2.590 2.631 2.675 2.718 2.833 2.983 3.091 3.240
1981/82 2.141 2.174 2.211 2.246 2.342 2.465 2.554 2.678
1982/83 1.801 1.829 1.860 1.890 1.970 2.074 2.149 2.253
1983/84 1.601 1.627 1.654 1.680 1.752 1.844 1.911 2.003
1984/85 1.454 1.477 1.502 1.525 1.590 1.674 1.735 1.819
1985/86 1.369 1.390 1.414 1.436 1.497 1.577 1.633 1.713
1986/87 1.309 1.330 1.352 1.373 1.432 1.507 1.562 1.637
1987/88 1.266 1.285 1.307 1.328 1.384 1.457 1.510 1.583
1988/89 1.242 1.261 1.282 1.303 1.358 1.430 1.481 1.553
1989/90 1.202 1.221 1.241 1.261 1.314 1.384 1.434 1.503
1990/91 1.153 1.171 1.191 1.210 1.261 1.328 1.376 1.442
1991/92 1.124 1.142 1.161 1.179 1.229 1.294 1.341 1.406
1992/93 1.084 1.101 1.120 1.138 1.186 1.249 1.294 1.356
1993/94 1.064 1.081 1.099 1.117 1.164 1.226 1.270 1.331
1994/95 1.046 1.063 1.081 1.098 1.144 1.205 1.248 1.309
1995/96 1.021 1.037 1.054 1.071 1.116 1.175 1.218 1.277
1996/97 - 1.016 1.033 1.050 1.094 1.152 1.194 1.251
1997/98 - - 1.017 1.033 1.077 1.134 1.175 1.232
1998/99 - - - 1.016 1.059 1.115 1.156 1.212
1999/00 - - - - 1.043 1.098 1.138 1.193
2000/01 - - - - - 1.053 1.091 1.144
2001 - - - - - - 1.037 1.087
2002 - - - - - - - 1.049
2003 et seq. - - - - - - - 1.000





CP2-TXR-REF-S13 12 07/06/2013

CAPITAL ACQUISITIONS TAX

Benefits taken from 1
st
December 1999 onwards

Rates of Tax

Threshold amount Nil
Balance 20% (Up to 20 November 2008)
Balance
Balance
22%
25%
(21 November to 7 April 2009)
(From 8 April 2009 to 6 December 2011)
Balance 30%

(From 7 December 2011 onwards)




EXEMPTION THRESHOLDS FOR GIFTS OR INHERITANCES

Group Thresholds A B C



From 1
st
December 1999 380,921 38,092 19,046
From 1
st
January 2001 402,253 40,225 20,113
From 1
st
January 2002 422,148 42,215 21,108
From 1
st
January 2003 441,198 44,120 22,060
From 1
st
January 2004 456,438 45,644 22,822
From 1
st
January 2005 466,725 46,673 23,336
From 1
st
January 2006 478,155 47,815 23,908
From 1
st
January 2007 496,824 49,682 24,841
From 1
st
January 2008 521,208 52,121 26,060
From 1
st
January 2009 to 7 April 2009 542,544 54,254 27,127
From 8
th
April 2009 434,000 43,400 21,700
From 1
st
January 2010 to 7 December 2010 414,799 41,481 20,740
From 8
th
December 2010 to 6 December 2011 332,084 33,208 16,604
From 7
th
December 2011 onwards 250,000 33,500 16,750


CP2-TXR-REF-S13 13 07/06/2013
CAPITAL ACQUISITIONS TAX

TABLE A
1 2 3 4

Years of Age Joint Factor Value of an interest Value of an interest
in a capital of 1 in a capital of 1
for a male life aged for a female life
as in Column 1 aged as in Column 1

0 .99 .9519 .9624
1 .99 .9767 .9817
2 .99 .9767 .9819
3 .99 .9762 .9817
4 .99 .9753 .9811
5 .99 .9742 .9805
6 .99 .9730 .9797
7 .99 .9717 .9787
8 .99 .9703 .9777
9 .99 .9688 .9765
10 .99 .9671 .9753
11 .98 .9653 .9740
12 .98 .9634 .9726
13 .98 .9614 .9710
14 .98 .9592 .9693
15 .98 .9569 .9676
16 .98 .9546 .9657
17 .98 .9522 .9638
18 .98 .9497 .9617
19 .98 .9471 .9596
20 .97 .9444 .9572
21 .97 .9416 .9547
22 .97 .9387 .9521
23 .97 .9356 .9493
24 .97 .9323 .9464
25 .97 .9288 .9432
26 .97 .9250 .9399
27 .97 .9209 .9364
28 .97 .9165 .9328
29 .97 .9119 .9289
30 .96 .9068 .9248
31 .96 .9015 .9205
32 .96 .8958 .9159
33 .96 .8899 .9111
34 .96 .8836 .9059
35 .96 .8770 .9005
36 .96 .8699 .8947
37 .96 .8626 .8886
38 .95 .8549 .8821
39 .95 .8469 .8753
40 .95 .8384 .8683
41 .95 .8296 .8610
42 .95 .8204 .8534
43 .95 .8107 .8454
44 .94 .8005 .8370
45 .94 .7897 .8283
46 .94 .7783 .8192
47 .94 .7663 .8096
48 .93 .7541 .7997
49 .93 .7415 .7896
50 .92 .7287 .7791
CP2-TXR-REF-S13 14 07/06/2013
TABLE A Contd.



1 2 3 4

Years of Age Joint Factor Value of an interest Value of an interest
in a capital of 1 in a capital of 1
for a male life aged for a female life
as in Column 1 aged as in Column 1

51 .91 .7156 .7683
52 .90 .7024 .7572
53 .89 .6887 .7456
54 .89 .6745 .7335
55 .88 .6598 .7206
56 .88 .6445 .7069
57 .88 .6288 .6926
58 .87 .6129 .6778
59 .86 .5969 .6628
60 .86 .5809 .6475
61 .86 .5650 .6320
62 .86 .5492 .6162
63 .85 .5332 .6000
64 .85 .5171 .5830
65 .85 .5007 .5650
66 .85 .4841 .5462
67 .84 .4673 .5266
68 .84 .4506 .5070
69 .84 .4339 .4873
70 .83 .4173 .4679
71 .83 .4009 .4488
72 .82 .3846 .4301
73 .82 .3683 .4114
74 .81 .3519 .3928
75 .80 .3352 .3743
76 .79 .3181 .3559
77 .78 .3009 .3377
78 .76 .2838 .3198
79 .74 .2671 .3023
80 .72 .2509 .2855
81 .71 .2353 .2693
82 .70 .2203 .2538
83 .69 .2057 .2387
84 .68 .1916 .2242
85 .67 .1783 .2104
86 .66 .1657 .1973
87 .65 .1537 .1849
88 .64 .1423 .1730
89 .62 .1315 .1616
90 .60 .1212 .1509
91 .58 .1116 .1407
92 .56 .1025 .1310
93 .54 .0939 .1218
94 .52 .0858 .1132
95 .50 .0781 .1050
96 .49 .0710 .0972
97 .48 .0642 .0898
98 .47 .0578 .0828
99 .45 .0517 .0762
100 or over .43 .0458 .0698
CP2-TXR-REF-S13 15 07/06/2013

Table B

(Column 2 shows the value of an interest in a capital of 1 for the number of years shown in column 1)

1 2 1 2


Number of Value Number of Value
years years


1 .0654 26 .8263
2 .1265 27 .8375
3 .1836 28 .8480
4 .2370 29 .8578
5 .2869 30 .8669
6 .3335 31 .8754
7 .3770 32 .8834
8 .4177 33 .8908
9 .4557 34 .8978
10 .4913 35 .9043
11 .5245 36 .9100
12 .5555 37 .9165
13 .5845 38 .9230
14 .6116 39 .9295
15 .6369 40 .9360
16 .6605 41 .9425
17 .6826 42 .9490
18 .7032 43 .9555
19 .7225 44 .9620
20 .7405 45 .9685
21 .7574 46 .9750
22 .7731 47 .9815
23 .7878 48 .9880
24 .8015 49 .9945
25 .8144 50 and over 1.000