Dáil Éireann Debate, Wednesday - 19 December 2012
91. Deputy Finian McGrath asked the Minister for Finance if he will clarify the liability of self employed persons to pay the universal social charge when their business operates exclusively in Northern Ireland but they are resident in the Republic of Ireland and the liability of PAYE employed persons who work exclusively in Northern Ireland but are resident in the Republic of Ireland. [57181/12]
View answerI am advised by the Revenue Commissioners that individuals resident in the State are liable to tax and Universal Social Charge (USC) on their worldwide income. Therefore, where a person is resident in the State the following rates of USC apply to income from a business or an employment outside the State.
The standard rates of Universal Social Charge are: 2% on the first €10,036; 4% on the next €5,980; 7% on the balance. There is a surcharge of 3% on individuals who have income from self-employment that exceeds €100,000 in a year. This surcharge also applies to income over €100,000 from an employment outside the State which is treated in this State for tax and USC purposes in the same way as income from self-employment; that is, under self-assessment.
An individual whose total income for a year does not exceed €10,036 is exempt from USC.
