Dáil Éireann Debate, Thursday - 5 October 2023
150. Deputy Ged Nash asked the Minister for Finance if he is concerned at the low number of individuals who pay the domicile levy; if he has any plans to reform the levy; and if he will make a statement on the matter. [43054/23]
View answerThe domicile levy is a levy to be paid annually by individuals who:
• are domiciled in Ireland in the tax year;
• whose world-wide income in the tax year exceeds €1m;
• whose liability to Irish income tax in the tax year is less than €200,000; and
• who owns Irish property on 31 December in the tax year where the market value of that property is greater in value than €5m.
The amount the levy set at is €200,000. Any Irish income tax paid by the relevant person is allowed as a credit in calculating the actual amount due in any year.
The levy was introduced as part of the Finance Act 2010. Its purpose was to ensure that wealthy individuals contributed to the Irish taxation system during a time of economic and fiscal difficulty. For the tax years 2010 and 2011, it was a requirement that the person liable be both an Irish citizen and Irish domiciled. The requirement to be an Irish citizen was removed for the tax year 2012 and later years.
I am advised by Revenue that 13 individuals paid the levy in 2021, raising €1.6 million. I am also advised that between 2019 and 2021, the levy has raised €6.4 million.
The domicile levy interacts with the wider Remittance Basis of Taxation and I intend to carry out a detailed examination and review of this in 2024. This review will include a public consultation, which will be published in the coming months.
