Ponty
pfm Member
Corporate taxes are not personal taxes.
The Irish personal income tax regime takes much more than the UK's, but it at least has the virtue of being simple and transparent enough that I can summarise the whole thing here (PAYE and self-employed are pretty much the same):
Income from €0-€35,799.99, taxed at 20%
Income over €36,800, taxed at 40%
"National Insurance" equivalen of around 4%
A Social levy of approx 3% on income under €70000, 8% on balance
There is no tax-free allowance, but you get a refund of up to 2000 or so on your calculated income tax liabilty (4000 if you're married) - this arrangement is neutral to middle-income earners but much fairer to lower-income earners than a tax-free allowance.
On top of that, indirect taxation is higher too: new cars are taxed at around 20% above the UK, and there are no tax benefits for company cars; VAT is 23%, excise duties on alcohol are higher, primary healthcare is not free. The only thing that is cheaper here than the UK is motor fuel, by about 2-3p/litre; and 3rd-level education (which is tuition free, but annual capitation fees run to around €4000).
Incidentally, stock options are considered to be a Benefit in Kind here. The difference between the option price and market value at time of vesting is taxed as income; any profit made on sale is then taxed as Capital Gains (at 33% for gains above €1250).
Yes, plenty here have been stung by the stock option tax liability and falling share price double whammy. It’s not a one way bet by any means! CT cannot be ignored, many are lambasting the govt for keeping it at 19% and not increasing to 25% yet Ireland sit there at 12.5% without undue pressure. Of course, I understand it keeps their US corporate sponsors happy (despite the trapped cash problem) and provides a load of employment on the flip side, but it’s a staggeringly low rate which the UK would be crucified for implementing.