Topic 4 taxation Flashcards
What is tax?
Tax is a compulsory payment made by households, consumers and businesses to the state to help meet the expense of running the country.
What is direct tax?
Direct Taxation refers to any tax that is based on your income, including PAYE, USC, DIRT, Capital gains tax etc.
What is progressive tax?
Progressive taxes are taxes where the percentage rate of tax a person pays increases as their income increases. Therefore, the more you earn, the more tax you pay.
What is Capital acquisitions tax?
Capital Acquisitions Tax is a tax on the current value of gifts received e.g. an inheritance
What is indirect tax?
Indirect Taxation refers to any tax on goods or services you purchase. For example Motor tax, stamp duty and Local property tax.
What is capital gains tax?
Capital Gains Tax is paid on the profit made by an individual on the sale of an asset, such as company shares.
What is customs duty?
Customs Duty is a tax that must be paid on goods we bring into Ireland from a country outside of the EU, for example from the USA.
What is DIRT?
Deposit Interest Retention Tax is a tax on the interest earned in savings accounts.
What is existe duty tax?
Excise Duty is charged on particular goods either when they are manufactured or when they are sold. Excise duties are usually charged on products that pose health risks such as cigarettes or alcohol.
What is PAYE?
Income Tax (PAYE) is a tax charged on all employees in Ireland. PAYE stands for Pay As You Earn.
What is local property tax?
Local Property Tax is an annual tax charged on all residential properties in the state, including houses, apartments, rented accommodation, social housing and local authority houses. This tax is calculated on the market value of the property.
What is stamp duty?
Stamp Duty is charged on the use of certain items, such as cheques, credit and debit cards and on the transfer of property.
What is USC?
Universal Social Charge (USC) is a tax on income that was brought in to raise revenue for the government.
What is VAT?
Value Added Tax (VAT) is paid by consumers on certain goods and services that they purchase.
