Supplementary Budget 2009 - Income Levy
Income Levy
Changes as a result of supplementary Budget 2009.
Q. What changes are taking place in the income levy ?
The rates effective from 1 May 2009 are being doubled.
New rates are :-
- 2% on first €75,036,
- 4% on next €99,944,
- 6% on balance
The exemption limit for persons under 65 years is being reduced to €15,028 from €18,304 with effect from 1 May 2009.
Q. How will the changes impact for payroll or employees ?
The new rates will apply to all payments made on or after 1 May 2009. Instructions will issue shortly to employers and Payroll operators on how to implement the changes.
Q. How will the changes in rates impact for the self-employed who will pay income levy with preliminary tax?
New composite annualised rates will apply for the self-employed.
They are :-
- 1.67% on first €75,036,
- 3% on next €25,064,
- 3.33% on next €74,880,
- 4.67% on next €75,140,
- 5% on balance
Q. How is the exemption limit for persons under 65 years affected ?
With effect from 1 May 2009 the exemption of €18,304 is reduced to €15,028.
The revised legislation provides that where someone has utilised a proportion of the original exemption in the period up to 30 April 2009, then in applying the new lower limit to the income for the year of assessment, any underpayment of levy arising in the period to 30 April 2009 as a result of that higher exemption for that short period will be disregarded.
Income Levy - Frequently Asked Questions (PDF, 234KB)
Income Levy Certificate 2009 (PDF, 240KB)