The Tax System in Ireland

The tax system in Ireland
20XX
• Introduction
TABLE OF • Overview of tax revenue and type of

tax
CONTENTS • Changes in taxation
• Conclusion
20XX
INTRODUCTION
Ireland, a country in Western Europe,

occupies five-sixths of the westernmost major
island of the British Isles. The economy of the
Republic of Ireland is a highly developed
knowledge economy, focused on services in
high-tech, life sciences, financial services, and
agribusiness, including agrifood.
20XX
In the global GDP per capita tables,
Ireland ranks 2nd of 192 in the IMF table
and 4th of 187 in the World Bank ranking.
Ireland was among the founding

members of the Organisation for
Economic Cooperation and Development
(OECD) in 1961.
20XX
Summary of cost of living in Ireland:
• A family of four estimated monthly costs are
92,422,549.7₫ (3,441.2€) without rent.
• A single person estimated monthly costs
are 26,423,767.5₫ (983.9€) without rent.
• Cost of living in Ireland is, on average,
123.4% higher than in Vietnam.
• Rent in Ireland is, on average, 375.1%
higher than in Vietnam.
20XX
Ireland has income disparity, with differences between the richest and
lowest earners, similar to many modern nations. The government and
other groups are working to address this issue by implementing measures
that benefit those with lower earnings and try to reduce inequality.
Taxation Personal income taxes,
in
VAT added tax,
Ireland
comes
Excise tax ,
from
Corporation taxes …
20XX
TAX HAVEN
Ireland is referred to as a “tax haven” because of the

country's taxation and economic policies. Legislation heavily
favors the establishment and operation of corporations, and
the economic environment is very hospitable for all
corporations, especially those invested in research,
development, and innovation.
Overview of tax
revenue and
type of tax.
• Taxes play an important role in
regulating the economy,
including encouraging or
restricting certain economic
activities through tax policy.
• Taxes are also used as a tool to
reduce income and wealth
inequality, contributing to
sustainable development and
social justice.
Ireland’s tax rate
• The tax rate for businesses that

Ireland is applying 15%
• Ireland has tax treaties with other
countries that permit
multinational businesses to pay
lower taxes and provide
additional incentives to
encourage them to invest in
research and development.
Two main categories of taxes
Direct Indirect
taxes taxes.
Direct tax Indirect tax
Income tax Sale tax
Capital Gains tax Service tax
Securities transaction tax Custom Duty
Perquisite Tax Excise duty
Corporate tax VAT

Personal income tax.
• Irish income
tax is imposed • An individual
on the who is resident
worldwide but not
income of an domiciled in
individual who Ireland is liable
is resident and to Irish income
domiciled in tax on Irish-
Ireland. source income
2024 (EUR)
Filing status
Tax at 20% Tax at 40%
Single and widowed person: Balance of income

Income up to 42,000
no dependent children over 42,000
Balance of income
Married couple: one income Income up to 51,000
over 51,000
Married couple: two Balance of income

Income up to 84,000
incomes over 84,000
Personal income tax rates

Payroll tax
• Payroll tax is defined as taxes paid by

employers, employees, or the self-
employed.
• All employees who earn more than
€13,000 annually owe USC, which is
another progressive tax. Their employer
deducts it at the time of processing
payroll through PAYE (Pay As You
Earn).
• Contributions to USC determine the
eligibility of employees and their family
members for many insurance benefits,
including unemployment assistance
Universal social charge
Rate Income Band
0.5% Up to €12,012
From €12,012.01 to
2%
€22,920
From €22,920.01 to
4.5%
€70,044
8% From €70,044.01 and over
Self-employed income over

11%
€100,000
Property tax
• Property taxes in Ireland apply to the
assets of an individual or a business.
• Many property taxes are highly
distortive and add significant
complexity to the life of a taxpayer
or business
• Sound tax policy minimizes
economic distortions. Except for
taxes on land, most property taxes
increase economic distortions and
have long-term negative effects on
an economy and its productivity.
Changes in taxation
Horizontal trends
Started at 61.5 million as the
lowest point in the chart,
fluctuating through the next 3
years, ending with nearly 70
million in 2013.
In 2015, continued to rose up to
87.3 million before the Covid-
19 pandemic occurred
In 2019, revenue and other
revenue moderately increased to
111.5 million in the last year of
the period.
The percentage rose by around 1%, from nearly 28% to
approximately 29%.
It suddenly fell off in 2014, then plummeted dramatically.
Although in the next year, this number was changed slightly,
it continued to lessen until the last year of the period.
Compare with the percentage of the tax
rate in other countries in the OECD’s
group
While the rate of Ireland was 61.5 million, that of

OECD’s group was 347.8 million.
The percentage of tax by OECD’s group remained
higher than in Ireland, ending at nearly 500.0
million after a period.
The table - the rate of tax revenue over GDP’s rate
shown by OECD increased slightly over the years,
at around 3% to 10%.
This is because the formula for calculating this data
is total taxes divided by GDP, and Ireland’s taxes
are low, so when using the equation, it was still
lower than that of OECD’s.
Vertical trends
Income tax, property

tax, payroll tax, and
goods and services tax
are the four categories
of taxes that make up
the majority of tax in
Ireland's tax system.
Tax
payroll
• Between 2010 and 2020,
payroll tax always made up a
minor percentage of the total
tax collected; it ranged from
0.668% to 0.897% and peaked
at 0.968% in 2020
 The reason is: lower payroll
taxes can enhance the
competitiveness of businesses,
especially in industries with
high labor costs.
Property Tax
• The tax rate peaked in 2014 at 7,57%
and fluctuated from 5.17% to 7.06%
over ten years. After the COVID-19
pandemic, the tax rate tended to
decline slightly in 2022, by roughly
4.88%
=> The reason is that revenue from
stamp duties on houses has declined
slightly to lower levels, as the number of
transactions has fallen since 2019
Personal income tax (PIT)
• Personal income makes up a large amount

of all taxes that the government collects.
Income tax reached a peak of 32.83% in
2015—six times more than property tax.
More precisely, the tax percentage stays
high throughout the COVID-19 epidemic
(2019–2021)
=> The reason is that those on low incomes
gain from the redistribution of the tax as
benefits,
Tax on goods and
services
• The proportion of goods and services
tax is likely to decline during 2010-
2022 if the three tax kinds have a
consistent tendency to slightly rise and
fall even further during the COVID-19
epidemic. In 2022, we see a low point
for the tax ratio of 26.43%
=> The reason is after the pandemic, the
Irish government wants to boost
consumer spending
Conclusion
General
In general, the tax system in Ireland is pretty

beneficial for the firms locating here such as Apple,
Google,etc… in comparison with other OECD
countries. The tax revenue of Ireland equal nearly ⅕
compared with other countries on OECD group
from 2010 to 2022. Personal income tax and goods
and services tax account for the highest number;
while payroll tax and property taxes just make up a
minor proportion
20XX
Solutions
And we will propose some solutions to improve
the Ireland tax system. For the personal income
tax, Ireland's authorities should broaden the
personal tax base. Because of the narrow tax
base, the tax source is overly dependent on
workers who are paid higher. Broadening the tax
base may be more sustainable in the long term.
This is because laborers can contribute according
to their financial ability.
20XX
Simplify
The tax system also needs to be simplified due
to its complexity. This complexity may make it
difficult for Irish people to compute the tax
payable. Simplifying tax types may help
people easily identify the amount of tax that
they have to pay to the government. Also,
many more people could approach and
understand about taxes.
20XX
Environment and VAT
About environmental tax, the government
should raise these taxes to increase the budget
for the environment, so that the government
could use it to state management of the
environment.
In terms of VAT tax, applying a fixed rate of

VAT tax may make it become the main
revenue of tax.
20XX
Reducing tax rate
Furthermore, reducing the margin tax rate should

be considered in order to attract more
multinational firms and employees. The decline
of cost of location and hire workers may affect to
the decision of employers that they ought to
situate their company in this place or not
20XX
For Viet Nam
In Vietnam, Corporate Incomes Tax(CIT) is 20%, while

in Ireland this figure is just 12.5%. The low rate of CIT
can boost the development of domestic as well as
overseas businesses, so Viet Nam should consider
this type of tax. Reducing Personal Income Tax can
create more employment and creativity motivation.
20XX
Property
Tax revenue can be raised by raising the Local Property Tax
(LPT). Although this could lead to a dramatic increase in tax
liabilities for property owners who had a stable income from
property before (because the property price increased instantly)
in the short run, the rates would likely be capitalized into the
price of residential property in the longer run. As a result,
higher rates of LPT would be likely to alleviate the growth of
house prices. From this aspect, the increase of LPT is beneficial
for financial stability and increasing revenue
20XX
20XX

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The tax system in Ireland

TABLE OF • Overview of tax revenue and type of

Ireland, a country in Western Europe,

Ireland was among the founding

Ireland is referred to as a “tax haven” because of the

• The tax rate for businesses that

Capital Gains tax Service tax

Securities transaction tax Custom Duty

Perquisite Tax Excise duty

Corporate tax VAT

Single and widowed person: Balance of income

Married couple: two Balance of income

Personal income tax rates

• Payroll tax is defined as taxes paid by

8% From €70,044.01 and over

Self-employed income over

While the rate of Ireland was 61.5 million, that of

Income tax, property

• Personal income makes up a large amount

In general, the tax system in Ireland is pretty

In terms of VAT tax, applying a fixed rate of

Furthermore, reducing the margin tax rate should

In Vietnam, Corporate Incomes Tax(CIT) is 20%, while

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