Taxation Conor Flashcards
What is taxation?
It is money that all businesses and households must pay to the government. In Ireland Texas are collected by revenue commissioners on behalf of the government.
What are direct taxes?
They are paid directly by households and businesses and what they earn
What are indirect taxes?
These are taxes charged on what people spend
What is the progressive tax?
It promotes income equality. The more you earned the more you pay.
What is regressive tax – promotes income inequality?
High and low income people are paying the same tax everybody pays the same
What is PAYE?
It is income tax
It is a tax on your wage and salaries. You have to pay it by low and it is a progressive tax.
There are two rates 40% and 20%
What is PRSI?
Pay related social insurance
It is taken from the employees wages and pay revenue by employers
It is paid so employees can qualify for welfare by benefits in the future
You have to pay it bylaws
What is universal social charge?
USC
It is a progressive tax paid on your wages and salaries and it is paid by everyone who earned over €12,000
What is DIRT tax?
Deposit interest retention tax
It is paid on interest earned on savings in a deposit account at a rate of 33%
What is local property tax?
It is an annual tax based on the value of your property
What is capital Acquisitions tax?
It is tax on gifts and inheritance tax at 33%
There is no tax charged for spouses/civil partners
Can receive €40000 from parents tax-free
What are the taxes paid by businesses only?
Corporation tax
Self-assessment income tax
Commercial rates
Employers PRSi
What is corporation tax paid by a business?
It is tax charged on the profits made by a business
It is 12 1/2% in Ireland
It makes Ireland 🇮🇪 attractive for MNCs
What is self assessment income tax paid by businesses?
It is a direct tax paid by self-employed entrepreneurs on their business profits
What is commercial rates in terms of taxes paid by businesses?
They are charges on businesses premises depending on the value and location
The money is used by local authorities for a straight light, et cetera
What is employer as PRSI in terms of taxes paid by businesses?
There are tax a business pay to revenue for every employee it has
Money is not taken from employees wages it has taken from the business profits
What are some taxes paid by business businesses and households?
VAT
Motor tax
Excise duties
Capital gains tax
Custom duty
What is value added tax?
Tax on goods and services
It is an indirect tax – charged on more people spend
Different routes supply to different sectors. The standard rate in Ireland is 23% but for hospitality is 13%.
What is motor tax?
It is a tax charged and all vehicles on public roads
The amount depends on emissions
What are excise duties paid by businesses and households?
They are charged on certain goods such as cigarettes and Vapes to discourage customers from using the product
What types of products have excise duties?
Things that are not good for people like cigarettes, Vapes and petrol
What is capital gains tax CGT?
Tax on the gain made when an asset is sold
It must be declared by the business or individual
