Taxes

• Tax= a compulsory payment to the government
• Why pay tax?

  • government uses it for revenue to fund essential public services
  • Make sure equal distribution of wealth is an economy
  • government uses taxes to promote/ discourage activities
• PAYE( pay as you earn): payed by workers
• Self assessed income tax: payed by self employed
• USC(universal social charge): for incomes over a certain amount
• VAT: on goods and services
• Customs duties: on goods imported into Ireland from countries outside European union
• Excise duties: on certain goods eg) alcohol
• Carbon tax: tax on products that emit carbon dioxide
• Local property tax: on houses
• Stamp duty: on certain written documents eg) cheques
• VRT( vehicle registration tax): new car owners
• DIRT: tax earned on savings
• CGT( capital gains tax): tax on profits earned from sale of assets eg) property
• CAT(capital acquisition tax): paid in gifts and inheritance
• Capital: wealth in form of money or any item that has monetary value
• Types:

  direct: levied on income as earned eg) DIRT or PAYE

  indirect: levied on money as spent on goods and services eg) VAT, excise duties