Tuesday, 10 November 2015

Ceisteanna (189)

Charlie McConalogue

Ceist:

189. Deputy Charlie McConalogue asked the Minister for Finance if a person who has an off-farm PAYE job is eligible for the €500 self-employed tax exemption on farm self-employment income; and if he will make a statement on the matter. [39444/15]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

The Finance Bill 2015 proposes to introduce a new tax credit known as the Earned Income Tax Credit which will, subject to enactment of the Bill, be available for the tax year 2016 and later years.

The tax credit, which is capped at €550, is available in respect of an individual's earned income other than earned income that already qualifies for the Employee (PAYE) Tax Credit.  As such, farm self-employment income which arises from a trade qualifies as earned income for the purposes of the new Earned Income Tax Credit.

Where an individual has income that qualifies for the Earned Income Tax Credit and the Employee (PAYE) Tax Credit, the aggregate value of the tax credits is limited to €1,650, which is the maximum amount available for the Employee (PAYE) Tax Credit.

Similarly, an employee with two separate employments is limited to a maximum Employee (PAYE) Tax Credit of €1,650.