Restriction of Reliefs

Each year a report is issued showing the effects of the Restriction of Reliefs measure which limits the use of certain tax reliefs and exemptions by high-income individuals. These reports can be accessed below.

    Information Notes on the Revenue Commissioners’ Report on the Restriction of Reliefs Measure for the 2011 Tax Year

1. The report notes that the restriction measure has ensured the payment of an average effective income tax rate of 30% for those subject to the full restriction in 2011. When the USC is included, the average tax rate is 39.7%

2. It should be noted the 20% and 41% tax rates are marginal rates.

3. The marginal rate is different to effective income tax rates which are considerably lower for the average taxpayer.

4. In addition, high earners that were subject to the restriction in 2010 also paid PRSI and Income Levy, which was progressive and increased along with income level.

5. The actual effective rate of income tax for an average individual taxpayer earning €40,000, for example, is 15.53%.

6. Single individuals in the PAYE system would need income of almost €100,000 to have an effective income tax rate of 30%.

FileDescriptionYear
2011 ReportReport showing the effect of the High Earners Restriction for 20112011
2010 ReportReport showing the effect of the High Earners Restriction for 20102010
2009 ReportReport showing the effect of the High Earners Restriction for 20092009
2008 ReportReport showing the effect of the High Earners Restriction for 20082008
2007 ReportReport showing the effect of the High Earners Restriction for 20072007

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