How come foreigners are exempt from paying tax here

DullSpark

I'm working on a job where loads of foreigners and people from North of the border are employed. However they all seem to be exempt from tax until they have earned over approx €15000.

Alot of these are unskilled workers and are clearing well over €1000 net a week before the tax kicks in and they off back home again.

Seems a bit unfair to me

LawBoy2018

https://www.boards.ie/discussion/2058222075/how-come-foreigners-are-exempt-from-paying-tax-here

Nobody in Ireland earning €15K per year pays income tax, just €120 in USC.

Any more details?

Where are they living?

Unskilled, a grand a week, paye?

Geuze

https://www.boards.ie/discussion/2058222075/how-come-foreigners-are-exempt-from-paying-tax-here

Typically, people are exempt from income tax until 16,500

Furze99

Playing the system I guess, them's the rules and another one of the perks of partition. Another reason why the ordinary Sean or Sinead Citizen might cast a cold eye on some future border poll. Handy arrangement for some.

duffysfarm

https://www.boards.ie/discussion/comment/118296015#Comment_118296015

yeah, i think you need to do the maths on this again. One minute they are paying no tax on income under €15k and the next they are clearing €1,000 a week before tax. Two figures contradict each other and no one in this country can earn €1,000 a week before tax kicks in

Furze99

Quite possibly working in the building trades.

DullSpark

https://www.boards.ie/discussion/comment/118296096#Comment_118296096

I meant people earning over a grand a week without paying a cent in tax. I get that people earning less then €16500 a year should be exempt from tax but there should be a way that prevents people coming in and making a handy buck even if it meant taxing them and let them claim it back on a rebate. I've spoke with young lads aged 19-20 coming down here from up north taking home €1300 a week

Princess Consuela Bananahammock

Are the exemt? Or are they just taking nixers and not decaring it?

LawBoy2018

https://www.boards.ie/discussion/comment/118296164#Comment_118296164

But it's the same thing at the end of the day? Why do you care?

LawBoy2018

https://www.boards.ie/discussion/comment/118296096#Comment_118296096

Ever heard of a sole trader? Lol

There's also cross border taxation agreements between UK and ireland, there's thousands living in the north, working in the south and vice versa.

PAYE still has to be paid, or we'd all be at it :-)

Bicyclette

If you are concerned about people not paying the correct taxes, you can report them here https://www.revenue.ie/en/corporate/assist-us/reporting-shadow-economy-activity/reporting.aspx

Mrs OBumble

Many Irish people keep their (official) income below 18k, so they pay very little tax.

Tow

Revenue are well aware of this issue. They want to split the tax Year to quarters to make it less beneficial.

The old trick many companies had to put up with was employees working for 38 weeks a year, so they would qualify for their 'full entitlements'.

DullSpark

https://www.boards.ie/discussion/comment/118307524#Comment_118307524

Look I don't fully understand the tax system here but I don't get my first €16000 each year taxed at 0, pretty sure I pay it right through so I don't know why these guys get away with it.

We're all stuck still paying this USC charge while all these people come in get their money and head off home. Pure joke

Geuze

You do.

Everybody gets a 1650 personal tax credit, that means 8250 tax free.

Most workers get the 1650 PAYE/employee tax credit.

So most workers get 3,300 tax credits.

Check your Cert of tax credits, or check your payslip - do your tax credits add up to 3,300?

3,300 tax credits mean you pay zero tax on the first 16,500 income.