Universal Social Charge

The Income Levies and health levies have now been consolidated into one Universal Social Charge (“USC”) from 1 January 2011. The Universal Social Charge is a tax payable on gross income from all sources, including notional pay, after any relief for certain capital allowances, but before pension contributions.

 The rates of Universal Social Charge are:

• 2% on the first €10,036
• 4% on the next €5,980
• 7% on the balance.

However, these standard rates are modified in certain circumstances. In the case of individuals aged 70 or over, and individuals who hold full medical cards, the 4% rate applies to all income over €10,036.

There is a surcharge of 3% on individuals who have income from self-employment that exceeds €100,000 in a year, regardless of age. Thus, where such individuals are under 70 years and do not hold a full medical card, a rate of 10% applies to such income and where such individuals are aged over 70 years or hold a full medical card, a rate of 7% applies.

Exempt Categories:

• Where an individual's total income for a year does not exceed €4,004
• All Dept of Social Protection payments
• Income already subjected to DIRT

For further information please contact OSK Tax.