Dáil Éireann Debate, Wednesday - 25 September 2013
99. Deputy Pearse Doherty asked the Minister for Social Protection the amount of revenue raised per quarter in 2013 by extending PRSI to all income such as consultants' private practice from 1 January 2013; and if she intends to extend this to income such as dividends, rents in Budget 2014 as detailed in Budget 2013. [39888/13]
View answerFollowing the Minister for Finance’s 2013 Budget Statement indicating that the income base on which PRSI is charged will be broadened, I introduced the following measures.
With effect from 1 January 2013 modified rate contributors with additional earned self-employed income (from a profession or trade) and any other unearned income (such as rental income) became liable to PRSI at the rate of 4% on all such income. This measure was provided for in the Social Welfare and Pensions (Miscellaneous Provisions) Act 2013 and is expected to yield €8m in 2013 and €12m in a full year. As the PRSI on this income is paid within the Revenue Commissioners’ self-assessed system of tax collection, details of the amount of revenue raised in 2013 are not yet available.
In 2014, the exemption from PRSI applying to all employees who have no additional self-employed earned income but who do have unearned income only (such as rental income or dividends), will be abolished. The income will become liable to PRSI at the rate of 4%. This measure is projected to yield €14m in 2014 and €20 million in a full year.
