Dáil Éireann Debate, Thursday - 9 March 2017
101. Deputy Michael McGrath asked the Minister for Finance the number of persons that were in a position to benefit from the earned income tax credit in 2015; the qualifying criteria for persons that are self employed; and if he will make a statement on the matter. [12659/17]
Amharc ar fhreagraFollowing clarification with the Deputy's office, I understand that his query relates to the number of persons that were in a position to benefit from the earned income credit (EIC) in 2016. I am advised by Revenue that income tax returns in respect of 2016 are not yet available.
Prior to the announcement of the introduction of the EIC in Budget 2016, it was estimated that, based on 2013 returns, the number of income earners who would be in a position to benefit from the introduction of the EIC would be in the order of 112,000. Based on the most recent data (2014 returns) and on the basis of the qualifying criteria announced in Budget 2016, it is now estimated that the number of income earners who would currently be in a position to benefit from the EIC is in the order of 147,500.
The EIC is available to taxpayers with active self-employed trading or professional income and to business owners or managers who do not have access to the PAYE credit on employment (salary) income from their business. The credit was increased in Budget 2017 from €550 to €950. If an income earner also qualifies for the PAYE tax credit, the combined value of both the EIC and the PAYE tax credit cannot exceed €1,650.
