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Relief is given mainly in the form of a credit on tax payable. Some forms of relief are granted as a deduction, that is, a reduction in the taxable income.
- Most relief refers exclusively to Irish residents.
- The following amounts are subject to the definitions in law.
| Class of Relief |
Amount - EUR |
| Basic credit |
1,830 |
| Exemption for a married couple |
3,660 |
| Exemption limits for a senior citizen |
20,000 |
| Single parent |
1,830 |
| Rent on a residential apartment |
4,000 |
| Medical insurance |
at source |
| Payment to an approved pension scheme |
Subject to ceiling |
| Mortgage interest |
20%-25% For first time buyers |
Ireland Business Deductions
In addition to the deductions/credits listed above, deductions and business expenses may be claimed as detailed below:
- Offset of losses - A loss from one source of income may be offset against revenue from another source in the same tax year, including capital gains.
A loss may be offset forward without any limit on the number of years.
A loss may be offset back for one year.
In a cluster of companies with controlling shareholders who have a 75% holding, a loss in one company may be offset against the profits in another company in the group.
- Transactions between affiliated parties - Transactions with affiliated companies with a material identity of ownership or control are carefully inspected by the tax authorities who compare the value of the transactions with accepted market prices.
- Financing costs -Business financing costs may generally be deducted.
75% of the financing costs for an affiliated company with foreign owners is permitted only subject to the restrictions. In most cases the amount paid is not allowable as an expense.
- Bad Debts - Provision for bad debts is allowable on certain conditions.
- Depreciation Expenses - The straight-line method is the usual method of depreciation ,defined as capital allowance, in Ireland.
A depreciation table is presented below:
| Asset |
Annual Depreciation (%) |
| Computers |
12.5 |
| Building |
2 - 4 |
| Machinery and equipment |
12.5 |
| Hotels |
15 |
| Vehicles |
12.5 |
| Buildings in Inner City Improvements Areas |
50% |
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