Dáil Éireann Debate, Wednesday - 18 September 2013
137. Deputy Dominic Hannigan asked the Minister for Finance if he will outline exactly on what income the universal social charge is payable; if persons from outside the State who are paid a fee to work here are liable for same; and if he will make a statement on the matter. [37686/13]
Amharc ar fhreagraThe Universal Social Charge (USC) is a charge on the gross income of individuals if their gross income exceeds the USC threshold of €10,036 per annum. It applies to gross income before deduction for the various tax incentives or reliefs such as pension contributions. In addition, it also applies to income sources that are exempt from income tax such as income of certain artists or income from woodlands. However, allowance is made for the deduction of normal expenses associated with a trade, including normal capital allowances.
There are some types of income which are not chargeable to USC, such as social welfare payments and other similar payments made by bodies such as the Health Service Executive. Those in receipt of such income are only liable to the USC to the extent that they have income from other sources which exceeds €10,036 per annum. Furthermore, persons resident in Ireland are liable to USC on their world-wide income. Persons who are not resident in Ireland are liable to USC on income arising here. Such persons may obtain double taxation relief in their country of residence in respect of USC paid. Full details regarding the USC including the sources of income which are exempt from the charge can be obtained on the Revenue Commissioners website at http://www.revenue.ie/en/tax/usc/index.html.
