Frequently Asked Questions about Tax Issues
  • I am a PAYE worker with other income (rental income and dividends). Do I need to file a Tax Return?
    Yes, unless the non-PAYE income is small and has been coded onto your PAYE certificate (Certificate of Credits & Standard Rate Cut-off Points) to collect the extra tax due.
  • Are there any tax savings for the average PAYE worker?
    Yes, such as certain un-reimbursed medical expenses, service charges paid for bin collection, trade union subscriptions etc
  • Is mortgage interest deductable from residential rental Income for income tax purposes?
    Yes, for interest accruing on or after 1 January 2002 (or before 23 April 1998) on money borrowed to purchase, improve or repair the property.

    However, from 2006 onwards for an individual, an interest deduction will not be allowed unless it can be shown that the registration requirements of Part 7 of the Residential Tenancies Act 2004 have been complied with in respect of all tenancies that existed in relation to that premises in that tax year.
  • Do I have to pay tax on profits from the sale of company shares that I held.
    Yes possibly, CGT (Capital Gains Tax) is could be payable if the profit (as calculated for CGT purposes) exceeds your annual exemption (€1,270 for 2007).
  • My taxes are not up-to-date. What do I do?
    Get in contact with a professional tax adviser to discuss your current situation. He or she will advise you how to get your taxes in order and to keep yourself compliant with your tax obligations.
  • Will I get caught if I don't pay my tax and file returns when I am meant to?
    Extremely probable, Yes! Also , you will more than likely be charged interest and penalties. You should file tax returns and pay taxes when they are due.
  • Do I get a tax deduction for bringing my clients out for dinner or drinks?
    No. since 26 March 1982 no deduction is allowed for business entertainment such as : the provision of accommodation, food and drink and any other form of hospitality in any circumstances!
  • I rent my apartment. Do I get tax relief for rent paid each year?
    Tax relief at the standard rate of income tax (currently 20%) on some of your rent paid, amount depending on your age and your marital status, may be claimed by tenants in respect of rented residential accommodation which is your sole or main residence.
  • I am a living outside of Ireland and receiving rent from a house that I own in Dublin. Are my tenants obliged to deduct tax from my rents?
    If you are receiving the rent directly, and your usual place of abode is outside of Ireland, tax at the standard rate of income tax (currently 20%) must be deducted from your rent by your tenants and paid over to the Irish Revenue by them. However, rents paid to agents in Ireland are not paid under deduction of income tax. You should seek professional advice if you are a non-resident landlord.
  • Do I have to register for PAYE as an employer?
    Yes, if you have anyone 'employed' by you.