Dáil Éireann Debate, Wednesday - 17 December 2014
56. Deputy Sean Fleming asked the Minister for Finance if persons living here who are 80 years of age and whose only source of income is a pension from the UK, and where this amount is over €400 per week, are liable to universal social charge in respect of any portion of their income for 2013, 2014 and for 2015; and if he will make a statement on the matter. [48721/14]
View answerA UK pension that is similar to a social welfare pension in this State is not liable to USC. Other than such pensions, however, Irish resident individuals are liable to pay tax, including universal social charge (USC), on income arising from Irish and foreign sources, including occupational pensions.
Individuals aged 70 years or over, whose aggregate income for the year is €60,000 or less, will only pay USC at rates of 1.5% on the first €12,012 of income and a maximum rate of 3.5% on the balance in 2015. These rates were 2% on the first €10,036 of income, and a maximum rate of 4% on the balance in 2013 and 2014.
However, the UK and Ireland have a convention in place to eliminate double taxation on income arising in one State where the individual is resident in the other State. Irish tax, under the terms of the convention, includes income tax and USC. If the individual has paid UK tax on the income, a credit is allowed in computing the Irish income tax and USC liabilities to ensure that the income is not subject to double taxation. Further information on the USC is available from the Revenue website at:
http://www.revenue.ie/en/tax/usc/universal-social-charge-faqs.pdf
