Subject to certain exceptions and exemptions, income tax is chargeable on all income arising in the State to individuals, partnerships and unincorporated bodies.
The most common form of income tax is PAYE or Pay As You Earn deducted by employers from pay. Self-assessment applies to the self-employed and those with income from non-PAYE sources.
Exemption from Income Tax
There is provision for exemption from income tax, subject to conditions, of certain profits or income. The principal exemptions are from income tax on:
- Incomes below certain thresholds
- Income derived from certain leasing of farm land
- Certain earnings of writers, composers and artists
- Interest on Savings Certificates, Savings Bonds and Instalments Savings Schemes, subject to certain upper limits on holdings
- The discount on certain non-interest-bearing Government securities, and the premium on certain others
- Investment income arising from the investment of compensation payments made by the Courts, or under an out-of-court settlement, in respect of personal injury claims where the individual is permanently and totally incapacitated from maintaining himself/herself as a result of the injury.