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How tax on basic and commssion works?

  • 28-06-2016 03:30PM
    #1
    Registered Users, Registered Users 2 Posts: 10


    Hi,

    I'm highly Confused by tax. So I'm hoping someone can help explain it better.

    So I earn a basic salary of 19000 annual however I also earn commission which can vary each month and an annual medical health contribution. Because cinnamon can vary so much I like to be able to calculate what I earn.

    I've tried calculating my take home pay based on 20% tax. But it's never that high. I've noticed I'm charged between 11 - 13% tax depending on what I earn. Can anyone explain why I'm only on that instead of 20% (not that I'm complaining)

    The reason I ask is because I've recently been promoted to 20947 Euro annual salary and commission will be added monthly.

    I'm not very good with numbers and understanding taxes, it looks like a different language when I look at tax certs, so please if possible try dumb it down for me ha.


Comments

  • Registered Users, Registered Users 2 Posts: 15,073 ✭✭✭✭Geuze


    The tax rate is 20% on income up to 33-34k, yes.

    But, then you deduct tax credits to arrive at how much income tax you owe.


  • Registered Users, Registered Users 2 Posts: 14,595 ✭✭✭✭CIARAN_BOYLE


    Gross salary (under srcop) x20% = gross tax
    Gross tax -tax credits= net tax (on your payslip)


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