Chapter 10 // Personal taxation

Capital Acquisitions Tax (CAT)

Paid on gifts and inheritances; liable if value exceeds a certain limit.

Capital Gains Tax (CGT)

Tax on profits from selling assets (e.g., property, investments) above purchase price.

Carbon Tax

Applied to products emitting carbon, like heating oil and solid fuels.

Customs Duty

Tax on goods imported into Ireland from outside the EU.

Deductions

Payments deducted from gross pay to calculate net pay (e.g., tax, pensions).

Deposit Interest Retention Tax (DIRT)

Tax on interest earned from savings, deducted at source by financial institutions.

Direct Tax

Tax paid on income as it's earned by the person on whom it's levied.

Emergency Tax

Higher-than-normal tax rate to encourage new employees to organize tax affairs quickly.

Excise Duty

Tax on certain goods (e.g., fuel, alcohol, tobacco).

Gross Pay

Pay before deductions (basic pay + overtime + bonuses + commission).

Income Tax

Deducted at source by the employer.

Indirect Tax

Tax paid on income spent (e.g., VAT, excise duty, customs duty).

Local Property Tax (LPT)

Tax on residential property owners based on property market value.

Motor Tax

Compulsory tax for all vehicle owners.

Net Pay

Pay after all deductions.

Office of the Revenue Commissioners

Irish agency responsible for tax collection.

Pay As You Earn (PAYE)

Income tax deducted from employment earnings (wages, salaries, benefits).

Personal Public Service Number (PPSN)

Unique reference number for public service dealings, including tax.

Progressive Taxation

Tax rate increases as income increases.

Regressive Taxation

Tax that takes a higher percentage from low-income earners.

Self-Assessed Income Tax

Tax paid by the self-employed or those not on PAYE.

Stamp Duty

Tax on certain written documents, e.g., property purchase, cheques.

Standard Rate Cut-Off Point (SRCOP)

Income taxed at standard rate up to this point; above it taxed at higher rate.

Tax

Compulsory payment to the government for public services.

Tax Audit

Regular checks on tax returns by Revenue.

Tax Avoidance

Legally reducing tax liability by claiming tax reliefs or spending in certain ways.

Tax Credit

Amount reducing annual tax bill based on individual circumstances.

Tax Credits Certificate

Information used by employer to calculate tax deductions.

Tax Evasion

Illegal failure to declare income; results in penalties.

Tax Liability

Amount of tax a person must pay.

Tax Rate

Percentage of income taxed, e.g., 20% (standard), 40% (higher).

Taxation

Government revenue from taxes to fund public services.

Universal Social Charge (USC)

Additional charge on income over a certain amount, increases with income.

Value Added Tax (VAT)

Tax on goods and services purchased in Ireland.

Vehicle Registration Tax (VRT)

Tax on buying and registering a new car or motorcycle in Ireland.