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.
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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%.
| File | Description | Year |
|---|---|---|
| 2011 Report | Report showing the effect of the High Earners Restriction for 2011 | 2011 |
| 2010 Report | Report showing the effect of the High Earners Restriction for 2010 | 2010 |
| 2009 Report | Report showing the effect of the High Earners Restriction for 2009 | 2009 |
| 2008 Report | Report showing the effect of the High Earners Restriction for 2008 | 2008 |
| 2007 Report | Report showing the effect of the High Earners Restriction for 2007 | 2007 |