Can I refund
taxes
paid in Ireland?

All working people are obliged to pay tax in Ireland:

• Income Tax
• Universal Social Charge (USC)
• Pay-Related Social Insurance (PRSI)
• Local Property Tax (LPT)

At the same time, all working people are entitled to use a huge number of tax credits from the state.

The detailed information about the tax credits can be found at REVENUE.IE home page

• Tax credits, allowances and reliefs

Some of them are provided automatically. However, in order to get access to the full list of tax credits, you just need to initiate the online registration process.

Current income tax rates
The tax rate depends on the income, i.e. the higher is the income, the bigger are taxes. In 2019, the rate of the income tax starts from 20% for salaries of less than 35,300€ and reaches 40% for salaries over 35,300€.

The detailed information about the tax credits can be found at REVENUE.IE site

• Income Tax
• Universal Social Charge (USC)

In order to decrease the overall amount of taxes, foreign people and local citizens working in Ireland are entitled to use tax credits, tax reliefs, and tax exemptions. In some cases, tax credits are automatically added to the tax return, while in other cases you need to claim them.

1) If you received more than 75% of the income in Ireland, you are a citizen of EU/EEA, and you spend less than 6 months in Ireland (thus being a non-resident), you are able to claim tax credits in full.

1.1.) The personal tax credit is your chance to return the income tax and the USC in part. In 2018, the amount of tax credit is 1,650€ per year. In other words, you have to pay taxes for the salaries higher than 8,250€.

1.2.) The employee tax credit can be used by people, who work or receive retirement pension or allowances. This tax credit can be used to return the income tax and the USC in part. In 2018, the amount of tax credit is 1,650€ per year. In other words, you have to pay taxes for the salaries higher than 8,250€.

In addition, you are allowed to claim several other tax credits, which can't be provided automatically (check the next FAQ).

2) Employment Expenses This tax credit is not provided automatically within the salary, and you need to submit Form 12 to the local authority.
A tax credit is obtainable if you spend your money on work-related expenses: repairing or replacing small tools required to perform your work, and cleaning, restoring or replacing the special clothing (e.g., the uniform or boots).
The fixed amount (you have to provide receipts and invoices). Depending on the profession and the field of work, the amount of tax refund may vary from 20€ to 500€ (for specific positions).

3) Medical Expenses (medical services, recipes, consultations, dentist services and so on).
You are able to enjoy the tax credit in all cases, when you spend your own money for medical services, including those received abroad. You are able to return up to 20% of expenses. In case you paid 50€, you can return the amount of 10€.

• This tax credit is not provided automatically within the salary, and you need to submit the med2 to Revenue.

4) Rent Tax Credit. The tax credit for rentals was terminated on December 31, 2017. You can enjoy the tax credit for the past years (in 2019, you are able to get tax credit for 2015-2017)/
If you rent an apartment of a private owner or an agency on a permanent basis, you are able to get the rent tax credit for 2014. For every year, you need to provide the name of the agent, the full address, the date of rental and the date of payment.
Please note that the maximum amount of rent tax credit is 40€ per person in 2017. If you are married, widowed or live in a civil partnership, you can enjoy the amount of 80€.

• This tax credit is not provided automatically within the salary, and you need to submit Form 12 to Revenue.

5) Tax relief on tuition fees. You are able to return 20% of the tuition fees, including the funds paid for the student's fee. The maximum amount is 7000€ per one educational program.
If you didn't work, or third parties, including your parents, paid for you, they are able to return their taxes and get a tax refund.

• This tax credit is not provided automatically within the salary, and you need to submit Form 12 to Revenue.

6) Single Person Child Carer Credit (SPCCC)
If you are the sole parent of the child (of less than 18 years, or older with full-time attendance), and registered for more than 6 months at the same address, you are able to get the tax credit. In 2018, the amount of tax credit is 1,650€ per year. In other words, the salaries of less than 8,250€ are not taxed.

• This tax credit is not provided automatically, and one needs to submit a request to the Revenue.

7) Married Tax Credit
It's worth it! When one of the partners doesn't work at or works only for a limited time during the year, another spouse is eligible for the married tax credit for the amount of 3,300€.

• This tax credit is not provided automatically, and one needs to submit a request to the Revenue.

Who can refund taxes in Ireland and when

In Ireland, tax year runs from January 1 to December 31.

The main rule, refund or repayment cannot be claimed more than 4 years after the end of the relevant tax year. So, 31 December 2020, is the last day to apply for tax refunds for tax year 2016.

💡 Furthermore, in accordance with the tax legislation, one is able to demand tax refunds for the current tax year in 2 cases:

• If you left Ireland and have no plans to return during the current tax year.
• If you've been unemployed for at least four weeks.

Starting from January 1, 2019, both P45 and P60 forms are eliminated as a part of the PAYE modernization. Starting in 2019, employees are able to get all the information about their salaries via MyAccount.

Before 2019
The P45 Form is issued by the employer at the end of the contract. The P60 Form is issued by the employer at the end of the tax year (at the beginning of January).

💡 You will need the P60 Form to do the following:

• to prove the exact amount of imposed taxes;
• to refund overpaid taxes;
• to apply for tax credits;
• to prove the level of income in case if you need a loan.

Full tax calculation and the real meaning of the P21 Final Report. It's worth noting that this is a document with tax calculation for a single tax year issued by tax authorities and Revenue.

The calculation consists of the following information:

• the total income from all sources
• the breakdown of your tax credits and returns
• all taxes, the USC and fees paid during the year
• overpaid (Final Result: Overpayment) or unpaid taxes (Final Result: Underpayment)

When you will receive the P21

1. After submitting the tax return. Your calculation will be issued in a couple of days.
2. One is able to submit a request to the Revenue in order to get the P21 calculation. Your calculation will be issued in a couple of days.

In Ireland, a special number called PPS is used to identify the citizens. This number is permanent and allows having access to social benefits, state services, and other information in Ireland.

• The PPS number consists of 7 digits with one or two letters in the end.

💡 How and where to get the PPS:

• You need to submit an application to one of the nearest PPS (PPS Number Allocation Centres), as soon as you arrive in the country. You will get a notification with your PPS number will be sent in around 4-5 days after the interview.
• Before assigning a number, local authorities will invite you to show your passport, ID card, photos and official confirmation of your address in Ireland. The full list of the documents can be found on the website.