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Ireland Tax Deductions





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 1,760
    Exemption for a married couple 3,520
    Exemption limits for a senior citizen 19,000
    Single parent 1,760
    Rent on a residential apartment 360-1,440
    Medical insurance at source
    Payment to an approved pension scheme Subject to ceiling


    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 in Ireland. In certain cases, such as in the case of vehicles, depreciation may be requested on the basis of the "depreciated balance".
    • A depreciation table is presented below (cars - on the depreciated balance basis):

    Class of asset Annual Depreciation (%)
    Industrial building 4
    Commercial building 2 - 4
    Machinery and equipment 12.5
    Hotels 15
    Vehicles 12.5 (Subject to maximum)
    Investments in Gas and Oil (under license) 100
    Buildings in Inner City Improvements Areas 50% maximum






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