Income tax changes take effect tomorrow

0

The tax package announced in the October budget will take effect from tomorrow.

From tomorrow, the flat-rate bracket for all employees will drop from € 35,300 to € 36,800 for single people, from € 39,300 to € 40,800 for single-parent families and from € 44,300 to € 45,800 for couples.

Finance Minister Paschal Donohoe said the changes would benefit everyone who pays income tax.

“In Budget 2022, I sought to make changes to the personal income tax system to ease the burden on middle and middle income earners and help them cope with the rising cost of living” , said Minister Donohoe.

The € 50 increase in each of the main tax credits – personal tax credit, employee tax credit and labor income tax credit – will also take effect from January 1.

The ceiling of the 2% bracket of the Universal Social Charge will also increase with the increase in the national minimum wage from € 10.20 to € 10.50 per hour.

Paschal Donohoe said this will ensure that a full-time worker who benefits from the pay rise will stay outside of USC’s top rate.

“The government is well aware of the impact of the rising cost of living on individuals and families. The income tax changes that will come into effect from tomorrow are an important part of the government’s response to support citizens in the face of this challenge, ”said the Minister of Finance.


Source link

Share.

About Author

Comments are closed.