Income Tax Collection Income Tax Collection Pay As You Earn (PAYE) system applies to Schedule E income Employees fall under the PAYE system Employers responsible for the deduction of Income Tax, PRSI and USC from payments to employees

Income Tax Collection Pay As You Earn (PAYE) Non-PAYE income up to €50,000 gross and up to €3,174 assessable can be taxed through PAYE system Coded into tax credits Tax paid by filing a Form 12 tax return

Income Tax Collection Self-assessment Chargeable persons Income above €50,000 gross, or Assessable income above €3,174 All proprietary directors

Income Tax Collection Obligations of chargeable persons For the prior year file an income tax return (Form 11) by 31st October Pay the balance of income tax due for the prior year by 31st October Pay Preliminary tax for the current tax year

Income Tax Collection Preliminary Tax 100% of previous year’s liability 90% of current year’s liability 105% of pre-preceding year’s liability

Income Tax Collection Surcharge for late filing 5% of tax liability if return is made within two months of due date (max €12,695) 10% of tax liability if return is more than two months late (max €63,485)

Income Tax Collection Late payment of tax Can be subject to interest of 0.0219% per day

Income Tax Collection Share Options A share option is an employment award that gives an employee the option to purchase a share at a set price regardless of market price of the share This is taxable income PAYE employees become chargeable persons when they receive share options

Income Tax Collection Obligations Register for self-assessment File an RTSO1 form within 30 days of exercise and pay tax, PRSI and USC File an income tax return