Frequently Asked Tax Questions in Ireland
Self-Assessment Questions
New to self-assessment? This section explains the basics: who it applies to, how the system works, when and how to pay preliminary tax, and what happens if you miss a deadline. The helpful guide for anyone filing outside the PAYE system.
a) If the non-PAYE income exceeds €5,000 you must register for the Self Assessment Income Tax system and submit an Income Tax Form 11.
b) If the income doesn’t exceed the threshold you can submit an Income Tax Form 12 which is the form normally used by PAYE earners.
a) The Income Tax Form 12 is for PAYE individuals with additional income under €5,000.
b) The Self Assessment Income Tax Form 11 is for individuals registered for the Self Assessment tax system.
a) You will need to register for VAT if your sale of services exceeds €37,500 per annum or sale of goods exceeds €75,000 per annum.
a) If you exceeded the VAT threshold and failed to register, you will be liable any VAT due and may incur interest and penalties for late payment.
Tax on Raisin and Overseas Savings
Online savers will find answers here on how deposit interest is taxed. Learn how overseas interest earned via platforms like Raisin is treated differently to Irish deposit interest, and when your deposit income means you need to file a Form 11 return.
Yes. If you are an Irish tax resident, you must declare all foreign savings interest, including interest earned through Raisin or other online platforms, on your Irish tax return.
Even though your savings are held with EU banks, Revenue still treats the interest as taxable income in Ireland.
FastTax.ie makes this easy by guiding you through exactly what to declare.
Some countries deduct withholding tax before paying interest.
If this happens:
- You still declare the full interest earned
- Any foreign tax paid can usually be credited against your Irish tax bill
FastTax.ie helps ensure this is handled correctly.
Yes. There is no minimum amount below which foreign interest can be ignored.
All foreign deposit interest must be declared as part of your Form 11 tax return if you are required to file one (total non-PAYE income of over €5,000 net), or else via MyAccount for PAYE workers.
If foreign interest is not declared:
- Revenue will apply a higher tax rate to the interest earned
- Interest and penalties may also apply
Declaring your interest correctly protects you and ensures full compliance.
The FastTax.ie process helps you ensure that you remain compliant and avoid costly omissions.
Rental Income Tax Return Questions
Landlords and property owners will find answers here on how rental income is taxed. Learn what must be declared, which rental expenses and mortgage interest are allowable, and when your rental income means you need to file a Form 11 return.
It is a legal requirement and you must register each residential letting with them. If you do not register you cannot claim tax relief for mortgage interest against your rental income.
Unfortunately yes! The rent a room exemption does not apply so you need to record your expenses and receipts to claim them as a tax deduction against your Airbnb income.
Unfortunately not.
You do not need to pay tax on it provided the gross income does not exceed the following limits:
- 2019- €14,000
Self-Employed Tax Return Questions
This section answers the most common questions for freelancers, sole traders, and contractors. Understand how to report your income, what business expenses you can claim, how preliminary tax works, and how to stay on top of your Form 11 obligations.
You claim is based on the percentage business use of the car e.g. Total annual running costs €5,000 Business Use 75% Tax claim for €3750 (€5,000 x 75%)
Ongoing expenses are the regular costs you incur to keep your business running. They are recurring, necessary, and usually tax-deductible.
Examples for businesses:
- Rent and utilities
- Staff wages
- Marketing and advertising
- Software subscriptions
- Insurance
- Routine maintenance
These are different from capital expenses, which relate to buying long-term assets like equipment or vehicles.
Keeping track of ongoing expenses helps with:
- Budgeting and cash flow
- Reducing your taxable profit
- Filing accurate tax returns
An annual fixed assets claim refers to claiming capital allowances on long-term business assets, such as equipment, machinery, or vehicles.
Instead of deducting the full cost of an asset in one year, you claim a percentage of it each year over time.
Examples of capital allowance rates:
- Plant & machinery: 12.5% over 8 years
- Industrial buildings: 4% over 25 years
Example:
If you buy equipment for €40,000, you can claim €5,000 per year (12.5%) for 8 years against your taxable profits.
To claim:
- The asset must be used wholly and exclusively for the business.
- Include the claim in your Form 11 tax return.
Drawings are money or assets you take out of your business for personal use. This applies to sole traders and partners—not company directors.
Key points:
- Drawings are not a business expense and can’t reduce your taxable profits.
- You are taxed on the profit your business makes, not how much you withdraw.
- Drawings reduce your capital in the business but do not affect your tax bill.
Example:
You earn €50,000 in business profit and take out €20,000 during the year. You’re still taxed on the full €50,000.
Tax Return Credits & Deductions Questions
Wondering which credits and reliefs you’re entitled to? This section breaks down common ones — like the age credit, home carer credit, medical expenses, and pension contributions — including how to claim them and how they reduce your overall tax bill.
- Up to 30 years of age – 15% of earnings subject to income cap
- 30 to 39 years of age – 20% of earnings subject to income cap
- 40 to 49 years of age – 25% of earnings subject to income cap
- 50 to 54 years of age – 30% of earnings subject to income cap
- 55 to 59 years of age – 35% of earnings subject to income cap
- 60 years or over – 40% of earnings subject to income cap
Our free pension tax relief calculator will do all the work for you and tell you what is the maximum pension contribution you can make to get maximum tax relief.
A personal tax credit directly reduces the income tax you owe. It’s based on your personal status.
2025 personal tax credit amounts:
- Single: €2,000
- Married or civil partners (joint assessment): €4,000
- Single person child carer: €1,900
- Blind person: €1,950
- Incapacitated child: €3,800
Revenue applies this automatically if they know your status but let them know if your circumstances change.
If jointly assessed, married couples or civil partners get a €4,000 personal tax credit or double the single rate. If separately assessed, each gets €2,000.
Joint assessment often reduces tax by allowing shared credits and rate bands, and is often the most advantageous option for married couples.
Tax Return Deadline Questions
Don’t miss a key deadline. This section lists important dates for:
- Form 11 filing
- Preliminary tax payments
- Capital Gains Tax (CGT) in both the Initial and Later Periods
It also explains ROS extensions and the penalties for missing a deadline or underpaying tax.
The person receiving the gift or inheritance (the beneficiary) is responsible for paying CAT, not the person giving it.
Who Pays and When
- You must pay 33% tax on the value of the gift or inheritance that exceeds your tax-free threshold, which depends on your relationship to the person giving it.
- If the total value of gifts or inheritances received from one group exceeds 80% of your threshold, you must file a Form IT38.
CAT Pay & File Deadlines (Based on Valuation Date)
The valuation date is when the value of the gift or inheritance is fixed. Your deadline depends on this date:
- Valuation date between 1 January – 31 August:
File and pay by 31 October of the same year. - Valuation date between 1 September – 31 December:
File and pay by 31 October of the following year.
Timely filing and payment are essential to avoid interest or penalties.
If you file your return late or pay your tax late, you may face interest charges and penalties from Revenue. Here’s what to expect:
1. Late Filing Surcharge
If your Form 11 is not filed by the 31 October deadline (or the extended mid-November deadline via ROS), the following penalties may apply:
- 5% of the total liability up to a maximum of €12,695 if the return is up to 2 months late.
- 10% of the total liability up to a maximum of €63,485 if the return is more than 2 months late.
This penalty is in addition to any interest you owe on late tax payments. Revenue can also apply further penalties for persistent non-compliance or under-declaration.
2. Late Payment Interest
If you pay your tax late (including Preliminary Tax or the balance due for the year), Revenue will charge daily interest on the overdue amount.
- The standard rate of interest is 0.0219% per day (about 8% per year).
- Interest is calculated from the original due date (typically 31 October) until the tax is paid in full.
3. Impact on Refunds or Tax Clearance
Late filing or payment may:
- Delay tax refunds
- Affect your tax clearance status
- Trigger Revenue enforcement actions or audits
How to Avoid Penalties
- File and pay on time (using FastTax.ie)
- Set reminders for the key deadlines.
- If you can’t pay in full, contact Revenue as early as possible to arrange a payment plan.
Using FastTax.ie can help you to easily meet your file + pay obligations.
Yes, you must file a tax return if you dispose of an asset—even if no CGT is due.
CGT Payment Deadlines
Your payment deadline depends on when the asset was sold (disposed of):
- Sold between 1 January – 30 November: Pay CGT by 15 December of the same year.
- Sold between 1 December – 31 December: Pay CGT by 31 January of the following year.
Payment must be made before filing your tax return to avoid interest or penalties.
Do I Need to File a Return?
Yes. If you sold or disposed of a chargeable asset, you must file a tax return—even if no CGT is owed.
- Filing Deadline: Submit your return by 31 October of the year after the disposal (or later if you file online via ROS).
- What to Include:
- Sale price
- Purchase price
- Associated costs (e.g. legal or auctioneer fees)
- Any reliefs or exemptions (e.g. annual exemption of €1,270)
Even if your gain is fully exempt or offset by losses, filing is still required to stay compliant.
FastTax.ie helps you to easily calculate any CGT owed and to include your CGT details on your Form 11 to stay compliant.
A. The ROS pay and file extended tax return deadline for 2025 income tax returns and for beneficiaries liable to Capital Acquisitions Tax (CAT) is 18 November 2026
The extended deadline is for taxpayers who file a 2025 Form 11 income tax return and make the appropriate payment through ROS for:
- Preliminary Tax for 2026 and
- Income Tax balance due for 2025
To qualify for the ROS extension of 18 November 2026, it is necessary to both pay and file through ROS. If only one of these actions is completed through ROS, the extension does not apply and the required date to submit both returns and payments is no later than 31 October 2026.
Form 11 Tax Returns Questions
Got questions about the Form 11? This section covers who needs to file, what information is required, how to access and submit the form, and common mistakes to avoid. And remember — with FastTax.ie, you don’t have to do it alone.
You can apply to be excluded from the obligation to submit your return electronically if you don’t have the internet or due to old age.
All Form 11’s must be submitted electronically unless you receive an exemption from Revenue.
You must file a Form 11 if you are considered a self-assessed taxpayer. This includes:
- Self-employed individuals (e.g. sole traders, freelancers)
- Company directors (excluding some proprietary directors with PAYE only)
- Landlords earning rental income
- PAYE employees who also have:
- Rental income
- Investment income
- Foreign income
- Share options or dividends
- If the total amount of non-PAYE income exceeds €30,000 gross or €5,000 net.
- People claiming certain reliefs (e.g. High Earners Restriction, AVCs)
- Anyone notified by Revenue that they must file a Form 11
FastTax.ie makes it easy for chargeable persons to quickly and easily complete their Form 11. We offer flexible options to self-file via ROS or we can file for you.
Form 11 is the annual self-assessment tax return used by individuals who are self-employed or have income not fully taxed through PAYE.
It’s used to declare all sources of income, claim tax credits or reliefs, calculate your tax liability, and pay any tax due—including:
Income Tax
Universal Social Charge (USC)
Pay Related Social Insurance (PRSI)
Preliminary Tax for the following year
You must file a Form 11 if you’re a self-assessed taxpayer—this includes self-employed individuals, landlords, company directors, and those with significant non-PAYE income.
The deadline is typically 31 October each year (with a possible extension for online filers).
FastTax.ie helps Irish self-assessed individuals to quickly and easily complete their annual Form 11 income tax return.
PAYE Questions
This section is your quick reference guide if you’re taxed under the PAYE system whether as an employee or pensioner but have additional income. Find answers on topics like overpaid tax, missing tax credits, and when extra income (like rental or freelance work) means you need to file a Form 11.
Yes if you have PAYE source income.
Yes. A bonus will be treated in the same manner as your salary for PAYE purposes.
As a PAYE worker with consultancy income, you must register for Self Assessment if your non-PAYE income exceeds certain thresholds:
- Register for Self Assessment if:
- Your taxable non-PAYE income is €5,000 or more after deductions, or
- Your gross non-PAYE income is €30,000 or more.
- Do not register if:
- Your taxable non-PAYE income is less than €5,000, and
- Your gross non-PAYE income is less than €30,000, and
- Your non-PAYE income is coded for PAYE, meaning Revenue adjusts your tax credits and standard rate cut-off point.
What to do if you need to register:
If your consultancy income exceeds the thresholds, you must register for Self Assessment via Revenue’s eRegistration service or by completing Form TR1. You’ll then need to file Form 11 annually.
If below the thresholds:
You can report the income to Revenue, which will adjust your PAYE system accordingly.
Capital Gains Questions
CGT is due based on the asset disposal date:
- Between 1 Jan – 30 Nov: Pay by 15 Dec of the same year
- Between 1 Dec – 31 Dec: Pay by 31 Jan of the following year
Payment must be made before filing the tax return to avoid penalties.
If you incur a loss:
- Declare the Loss: Include it in your tax return under “Capital Gains.”
- Offset Losses: Offset against gains in the same year before applying the €1,270 exemption.
- Carry Forward Losses: Unused losses can be carried forward to offset future gains.
- Foreign Losses: Can only be offset against foreign gains and carried forward.
- Documentation: Keep records of the loss, as Revenue may request proof.
Whether you pay tax on a gift depends on its value and your relationship to the giver.
- Thresholds: Exceeding the tax-free threshold for your group triggers CAT at 33% on the excess.
- Small Gift Exemption: Gifts of up to €3,000 annually are exempt.
- Exemptions: Gifts from a spouse or civil partner are exempt. Certain reliefs (e.g., Agricultural, Business) may apply.
- Tax Return: You must file a Form IT38 if the value exceeds 80% of the threshold, even if no tax is due.
Lifetime tax-free thresholds for CAT are:
- Group A: €400,000 (e.g., parent to child)
- Group B: €40,000 (e.g., grandparent to grandchild)
- Group C: €20,000 (all other relationships)
Gifts from a spouse or civil partner are exempt.
These thresholds are cumulative and cover all gifts or inheritances since 5 Dec 1991.
