CAP2 Tax Reference Material (ROI) - 2013 Exams

5/26/2018 CAP2 Tax Reference Material (ROI) - 2013 Exams

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CP2-TXR-REF-S13 1 07/06/2013

CA Proficiency 2

PAPER 4 TAXATION II(Republic of Ireland)

Summer 2013 (Tuesday 25thJune 2013 9.30 a.m. to 1.20 p.m.)

TAXATION REFERENCE MATERIAL

FOR

TAX YEAR 2012


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INCOME TAX RATES

Lone Parents (single,

widowed or surviving civil

partner) with qualifying

children Rate

Single/Widow(er)/Survivi

ng Civil Partner except

loan parents with

qualifying children Rate

Married Couple/Civil

Partners Rate

First 36,800 20% First 32,800 20% First 41,800/65,600* 20%

Balance 41% Balance 41% Balance 41%

* Depending on personal circumstances of a married couple

INCOME TAX CREDITS Non-Refundable

Tax Credits

Basic Personal tax credit

Single person 1,650

Married couple/civil partnership 3,300

Widowed person/surviving civil partner (year of bereavement) 3,300

Widowed person/surviving civil partner tax creditno dependant children 2,190

One-parent family tax credit 1,650

Widowed parent/surviving civil partner tax credit

Year 1 after the year of bereavement 3,600





Age tax creditsingle/widowed/surviving civil partner 245

Age tax creditmarried/civil partnership 490

Incapacitated Child tax credit 3,300

Dependent relative (Maximum) 70Dependent relativeincome limit 13,837 -

Home carers credit 810

Income limit of home carer 5,080

Blind person 1,650

Both spouses blind 3,300

Employee tax credit 1,650

Rent Relief*

Specified Limits for 2012 55 Years

of age or

over

Others

Single.. 2,400 1,200Married /widowed/civil partner 4,800

* The tax credit is equal to the lower of the actual rent paid at the standard rate or the

specified limit at the standard rate of tax.

Rent - a- room relief ( Maximum) - 10,000


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Fees paid for Third Level Education*

Approved Course Tax Relief (subject to Threshold) Disregard for Tax Relief

2012/2013

Full Time 20% of Fees Paid 2,250

Part Time 20% of Fees Paid 1,125

* Subject to a maximum limit of 7,000 for academic year 2012/2013

INCOME TAX ALLOWANCE

Employed person taking care of incapacitated person 50,000 (max.)

INCOME TAX EXEMPTION LIMITS 2012

PERSONS under 65 years Maximum Allowable

Single / Widowed/Surviving Civil Partner 0

Married/Civil Partners 0

PERSONS aged 65 and over Maximum Allowable

Single / Widowed/Surviving Civil Partner 18,000*

Married/Civil Partners 36,000*

Dependent children: Increase exemption by 575 for each of first two, and by 830 for each additional child.

UNIVERSAL SOCIAL CHARGE (USC)EMPLOYEES

For the year 1 January 2012 to 31 December 2012:

The rates of Universal Social Charge are (where gross income is greater than 10,036 per annum):

Rate of USC Annual Income Monthly Income Weekly Income

2% Up to 10,036 per annum Up to 836 per month Up to 193 per week

4% Next 5,980 Next 498 Next 115

7% Balance Balance Balance

Persons over 70 years are not liable at the rate of 7% but instead pay at 4%.

Persons who hold a full medical card are not liable at the rate of 7% but instead pay at 4%.

Exempt Categories:

Where an individual's total income for a year does not exceed 10,036;

All Department of Social Protection payments;

Income already subjected to DIRT.


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SELF EMPLOYED

For the year 1 January 2012 to 31 December 2012:

The rates of Universal Social Charge are:

Under 70 and NOT in receipt of a

Medical Card

Over 70 OR in receipt of a

Medical Card

Up to 10,036 2% 2%Next 5,980 4%

4%Next 83,984 7%

Balance (>100,000) * 10% 7%

* There is a surcharge of 3% on individuals who have income from self-employment that exceeds 100,000 in a

year, regardless of age.

Surcharge on use of Property Incentives

There is a surcharge of 5% on investors with gross income greater than 100,000 where certain property tax reliefs have

been used.


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PENSION CONTRIBUTIONS

The maximum amount on which tax relief may be claimed in respect of qualifying premiums are as follows:

Age % of Net Relevant Earnings

Under 30 years of age 15%

30 to 39 years of age 20%

40 to 49 years of age 25%50 to 54 years of age 30%

55 to 59 years of age 35%

60 years and over 40%

PREFERENTIAL LOANBENEFIT IN KIND

Specified rate 2009 onwards:

5% in respect of qualifying home loans12.5% in respect of all other loans

*MOTOR BENEFIT-IN-KIND SCALE

Annual Business Kilometres Cash Equivalent

(% of OMV)

24,000 or less 30%

24,001 to 32,000 24%

32,001 to 40,000 18%

40,001 to 48,000 12%

48,001 and over 6%


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CAPITAL ALLOWANCES

RESTRICTED COST OF PASSENGER MOTOR VEHICLE FOR CAPITAL ALLOWANCES AND MOTOR

LEASES EXPENSES RESTRICTION PURPOSES

From 1st

January 2002 ........................... 22,000

From 1st

January 2006 ........................... 23,000

From 1st

January 2007 ........................... 24,000

Carbon Emissions Restrictions on Motor Vehicles bought on/after 1 July 2008

Category A Category B/C Category D/E Category F/G

0-120g/km 121-155g/km 156-190g/km 191g/km+

Category A-C Use the specified amount regardless of cost

Category D-E Two steps to calculate the limit:

1. Take the lower of the specified limit or cost

2. Limit is 50% of this amount

Category F- G No allowance is available

PLANT AND MACHINERY

Plantexpenditure after 4 December 2002 12.5% straight line

Cars other than those used as a taxi or in car hire business 12.5% straight line

INDUSTRIAL BUILDINGS

Expenditure incurred after 1 April 1992 4% straight line


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VAT

VAT Rate

Standard 23%

Reduced rate 13.5%

Second reduced rate 9%

Flat rate for farmers 5.2%

Livestock 4.8%

The main zero-rated goods and services are:

Exported goods (export, in this regard, means export outside the EU), most food and drink of a kind used for human

consumption, sea going ships of more than 15 tons, oral medicine, fertilizers, animal feed other than pet food, certain

printed books and booklets, most clothing and footwear appropriate to a child under 11 years, seeds and plants.

The main exempted activities are:

Certain lettings of immovable goods, medical, dental and optical services, insurance services, betting, funeral services,

transport of passengers and their baggage, educational services, certain banking services.

The main goods and services liable at the reduced rate are:

Immovable goods, services consisting of the development of immovable goods, concrete and concrete goods,, waste

disposal services, repair and maintenance of movable goods, short term hire of cars, boats, general agricultural and

veterinary services, fuel for power and heating, electricity, gas, timber, coal, driving instruction.

The main goods and services liable at the second reduced rate are:

Supply of food and drink (excluding alcohol and soft drinks), hotel lettings, guesthouses, caravan parks, camping sites,

admissions to cinemas, threatre, certain musical performances, museums, fairground amusement receipts, hairdressing

services.The main goods and services liable at the standard rate are:

Applies to all supplies of goods and services by taxable persons, that are not exempt or specifically liable at 0%, 5.2%,9% or

13.5%. Includes goods such as adult clothing and footwear, office equipment and stationery, drink and certain foods.

PRSI 2012

EMPLOYEES

Tax Year 2012:

Employees Income chargeable as below: Employee rate Employer's rate

Income up to and including 356 per week 4% 4.25%

Income greater than 356 per week 4% 10.75%

Note 1: Employees are exempt from PRSI on the first 127 per week.

SELFEMPLOYEDTax Year 2012

All Income is subject to PRSI at 4%. *

* Individuals in receipt of income of less than 5,000 in 2012 will not be subject to PRSI, a minimum contribution of 253 is

required.


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CORPORATION TAXRATES

Standard Rate Higher Rate

% %

Year ended 31st

December 2012 .................. 12.5 25

STAMP DUTYRATES

Shares

1%

Residential Property

Instruments executed on or after 8 December 2010

Consideration Rate

First 1,000,000 1%

Balance 2%

Non-Residential Property

Instruments executed on or after 7 December 2011

2%

CAPITAL GAINS TAXRATES

From 3/12/1997

to

From 15/10/2008

to

From

8/4/2009

From

7/12/2011

onwards

14/10/2008 07/04/2009 to 6/12/2011

Rate 20% 22% 25% 30%

CAPITAL GAINS TAX ANNUAL EXEMPT AMOUNT

1,270


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CAPITAL GAINS TAX INDEXATION TABLES

Year of

Assessment Multiplier for Disposal in Period Endedin which

Expenditurewas 5

thApril 5

thApril 5

thAprl 5

thApril 5

thApril 31

stDec 31

stDec 31

stDec

Incurred 1997 1998 1999 2000 2001 2001 2002 2003 et seq.

1974/75 6.017 6.112 6.215 6.313 6.582 6.930 7.180 7.528

1975/76 4.860 4.936 5.020 5.099 5.316 5.597 5.799 6.080

1976/77 4.187 4.253 4.325 4.393 4.580 4.822 4.996 5.238

1977/78 3.589 3.646 3.707 3.766 3.926 4.133 4.283 4.490

1978/79 3.316 3.368 3.425 3.479 3.627 3.819 3.956 4.148

1979/80 2.992 3.039 3.090 3.139 3.272 3.445 3.570 3.7421980/81 2.590 2.631 2.675 2.718 2.833 2.983 3.091 3.240

1981/82 2.141 2.174 2.211 2.246 2.342 2.465 2.554 2.678

1982/83 1.801 1.829 1.860 1.890 1.970 2.074 2.149 2.253

1983/84 1.601 1.627 1.654 1.680 1.752 1.844 1.911 2.003

1984/85 1.454 1.477 1.502 1.525 1.590 1.674 1.735 1.819

1985/86 1.369 1.390 1.414 1.436 1.497 1.577 1.633 1.713

1986/87 1.309 1.330 1.352 1.373 1.432 1.507 1.562 1.637

1987/88 1.266 1.285 1.307 1.328 1.384 1.457 1.510 1.583

1988/89 1.242 1.261 1.282 1.303 1.358 1.430 1.481 1.553

1989/90 1.202 1.221 1.241 1.261 1.314 1.384 1.434 1.503

1990/91 1.153 1.171 1.191 1.210 1.261 1.328 1.376 1.442

1991/92 1.124 1.142 1.161 1.179 1.229 1.294 1.341 1.4061992/93 1.084 1.101 1.120 1.138 1.186 1.249 1.294 1.356

1993/94 1.064 1.081 1.099 1.117 1.164 1.226 1.270 1.331

1994/95 1.046 1.063 1.081 1.098 1.144 1.205 1.248 1.309

1995/96 1.021 1.037 1.054 1.071 1.116 1.175 1.218 1.277

1996/97 - 1.016 1.033 1.050 1.094 1.152 1.194 1.251

1997/98 - - 1.017 1.033 1.077 1.134 1.175 1.232

1998/99 - - - 1.016 1.059 1.115 1.156 1.212

1999/00 - - - - 1.043 1.098 1.138 1.193

2000/01 - - - - - 1.053 1.091 1.144

2001 - - - - - - 1.037 1.087

2002 - - - - - - - 1.049

2003 et seq. - - - - - - - 1.000


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CAPITAL ACQUISITIONS TAX

Benefits taken from 1st

December 1999 onwards

Rates of Tax

Threshold amount NilBalance 20% (Up to 20 November 2008)

Balance

Balance

22%

25%

(21 November to 7 April 2009)

(From 8 April 2009 to 6 December 2011)

Balance 30% (From 7 December 2011 onwards)

EXEMPTION THRESHOLDS FOR GIFTS OR INHERITANCES

Group Thresholds A B C

From 1st

December 1999 380,921 38,092 19,046

From 1st

January 2001 402,253 40,225 20,113

From 1st

January 2002 422,148 42,215 21,108

From 1st

January 2003 441,198 44,120 22,060

From 1st

January 2004 456,438 45,644 22,822

From 1st

January 2005 466,725 46,673 23,336

From 1st

January 2006 478,155 47,815 23,908

From 1st

January 2007 496,824 49,682 24,841

From 1

st

January 2008 521,208 52,121 26,060From 1

stJanuary 2009 to 7 April 2009 542,544 54,254 27,127

From 8th

April 2009 434,000 43,400 21,700

From 1st

January 2010 to 7 December 2010 414,799 41,481 20,740

From 8th

December 2010 to 6 December 2011 332,084 33,208 16,604

From 7th

December 2011 onwards 250,000 33,500 16,750


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CAPITAL ACQUISITIONS TAX

TABLE A

1 2 3 4

Years of Age Joint Factor Value of an interest Value of an interest

in a capital of 1 in a capital of 1

for a malelife aged for a femalelife

as in Column 1 aged as in Column 1

0 .99 .9519 .9624

1 .99 .9767 .9817

2 .99 .9767 .9819

3 .99 .9762 .9817

4 .99 .9753 .9811

5 .99 .9742 .9805

6 .99 .9730 .9797

7 .99 .9717 .9787

8 .99 .9703 .9777

9 .99 .9688 .9765

10 .99 .9671 .975311 .98 .9653 .9740

12 .98 .9634 .9726

13 .98 .9614 .9710

14 .98 .9592 .9693

15 .98 .9569 .9676

16 .98 .9546 .9657

17 .98 .9522 .9638

18 .98 .9497 .9617

19 .98 .9471 .9596

20 .97 .9444 .9572

21 .97 .9416 .9547

22 .97 .9387 .952123 .97 .9356 .9493

24 .97 .9323 .9464

25 .97 .9288 .9432

26 .97 .9250 .9399

27 .97 .9209 .9364

28 .97 .9165 .9328

29 .97 .9119 .9289

30 .96 .9068 .9248

31 .96 .9015 .9205

32 .96 .8958 .9159

33 .96 .8899 .9111

34 .96 .8836 .905935 .96 .8770 .9005

36 .96 .8699 .8947

37 .96 .8626 .8886

38 .95 .8549 .8821

39 .95 .8469 .8753

40 .95 .8384 .8683

41 .95 .8296 .8610

42 .95 .8204 .8534

43 .95 .8107 .8454

44 .94 .8005 .8370

45 .94 .7897 .8283

46 .94 .7783 .8192

47 .94 .7663 .8096

48 .93 .7541 .7997

49 .93 .7415 .7896

50 .92 .7287 .7791


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TABLE A Contd.

1 2 3 4

Years of Age Joint Factor Value of an interest Value of an interest

in a capital of 1 in a capital of 1

for a male life aged for afemale lifeas in Column 1 aged as in Column 1

51 .91 .7156 .7683

52 .90 .7024 .7572

53 .89 .6887 .7456

54 .89 .6745 .7335

55 .88 .6598 .7206

56 .88 .6445 .7069

57 .88 .6288 .6926

58 .87 .6129 .6778

59 .86 .5969 .6628

60 .86 .5809 .647561 .86 .5650 .6320

62 .86 .5492 .6162

63 .85 .5332 .6000

64 .85 .5171 .5830

65 .85 .5007 .5650

66 .85 .4841 .5462

67 .84 .4673 .5266

68 .84 .4506 .5070

69 .84 .4339 .4873

70 .83 .4173 .4679

71 .83 .4009 .4488

72 .82 .3846 .430173 .82 .3683 .4114

74 .81 .3519 .3928

75 .80 .3352 .3743

76 .79 .3181 .3559

77 .78 .3009 .3377

78 .76 .2838 .3198

79 .74 .2671 .3023

80 .72 .2509 .2855

81 .71 .2353 .2693

82 .70 .2203 .2538

83 .69 .2057 .2387

84 .68 .1916 .2242

85 .67 .1783 .2104

86 .66 .1657 .1973

87 .65 .1537 .1849

88 .64 .1423 .1730

89 .62 .1315 .1616

90 .60 .1212 .1509

91 .58 .1116 .1407

92 .56 .1025 .1310

93 .54 .0939 .1218

94 .52 .0858 .1132

95 .50 .0781 .1050

96 .49 .0710 .0972

97 .48 .0642 .0898

98 .47 .0578 .0828

99 .45 .0517 .0762

100 or over .43 .0458 .0698


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Table B

(Column 2 shows the value of an interest in a capital of 1 for the number of years shown in column 1)

1 2 1 2

Number of Value Number of Valueyears years

1 .0654 26 .8263

2 .1265 27 .8375

3 .1836 28 .8480

4 .2370 29 .8578

5 .2869 30 .8669

6 .3335 31 .8754

7 .3770 32 .8834

8 .4177 33 .8908

9 .4557 34 .897810 .4913 35 .9043

11 .5245 36 .9100

12 .5555 37 .9165

13 .5845 38 .9230

14 .6116 39 .9295

15 .6369 40 .9360

16 .6605 41 .9425

17 .6826 42 .9490

18 .7032 43 .9555

19 .7225 44 .9620

20 .7405 45 .9685

21 .7574 46 .975022 .7731 47 .9815

23 .7878 48 .9880

24 .8015 49 .9945

25 .8144 50 and over 1.000

Documents

CAP2 Tax Reference Material (ROI) - 2013 Exams