Domicile Levy

The Domicile Levy applies to individuals who are Irish-domiciled and are Irish citizens –

• whose world-wide income exceeds €1m,
• whose Irish property is greater in value than €5m, and
• whose liability to Irish tax in a relevant year was less than €200,000.

The amount of the levy is €200,000 and is payable annually. Irish income tax paid by an individual in a tax year is allowed as a credit in calculating the amount of Domicile Levy due for that year. However in this context, tax practitioners are reminded that:

• Income Levy
• Universal Social Charge (USC)
• Pay Related Social Insurance (PRSI)
• Health Levy

are not allowable as a credit against the Domicile Levy for any year as they are not income tax.

Part 18C.00.01 of the Income Tax, Capital Gains Tax and Corporation Tax Manual has been updated accordingly.

22 August 2014