The PSRI is similar to U.S. Social Security payments and covers health and medical care, social assistance, training, and unemployment benefits. There are several classes and payment rates that apply. In general, for workers in the industrial, commercial, and service sectors, a rate of 6.5 percent is paid by the employer and 5.5 percent paid by the employee on the first IR 21,500 of wages. Other rates apply for different classes and income levels. Individual income tax is chargeable on a sliding scale taking into account several factors such as a personal allowance, PAYE payments, PRSI allowance, marital status, number of dependents, and other exemptions or entitlements.
Taxable income is the total income after making various deductions.
Any individual who lives or visits Ireland, but does not have a permanent home there, will be taxed on the income obtained in Ireland and the United Kingdom as well as other income remitted to Ireland. Individuals who neither live or visit Ireland nor maintain a permanent home there for any tax year are liable only for Irish taxes on income earned in Ireland. For non-resident companies, such as an American branch or subsidiary in Ireland, the corporate tax is levied on the profits arising from the Irish operations. An American firm in the Republic is taxed at the same rate as Irish firms. Investors have the advantage of liberal depreciation allowances, a low tax rate for manufacturing operations, and certain preferences for specific commercial activities within an enterprise zone, such as the Dublin Financial Centre.