Ch4: Personal Taxation

• Direct Taxation - tax based on your income or wealth, such as:

  • Income Tax / PAYE - paid every time money is earned from the employee to the government
  • Capital Gains Tax / CGT - amount of tax paid depends on the relationship between the person and another person, ex) aunt and nephew. Usually at 33%.
  • Capital Acquisitions Tax / CAT - tax paid on profits made of the selling of an asset, ex) property, stocks.
  • Deposit Interest Retention Tax / DIRT - tax paid on interest gained from a savings account
• Indirect Taxation - tax on any good or service you purchase, such as:

  • Customs Duty - tax paid on goods brought in from non-EU countries, such as the USA. This encourages the sale of Irish goods.
  • Motor Tax - paid by the owner of the car, to publicly drive the car. Tax is calculated based on CO2 emissions or engine size.
  • Local Property Tax - an annual tax charged on all residential properties, based on the market value of the property.
  • Value Added Tax / VAT - paid by consumers on certain goods and services at different rates, depending on the good or service bought.