Revenue has published eBrief 15/10 which deals with a number of recent queries on the 2009 ROS Form 11. The eBrief clarifies that it is the annual composite rates that are to apply for the purposes of calculating the Income Levy due on aggregate income for 2009. The employment/pension information required on the Form 11 and the tax exempt income subject to PRSI are also clarified in the eBrief.

Income Levy

The following composite rates apply for the full 2009 tax year for the purpose of calculating the income levy due on all relevant income:

• 1.67%: Income up to €75,036 per annum
• 3%: Income between €75,037 and €100,100 per annum
• 3.33%: Income between €100,101 and €174,980 per annum
• 4.67%: Income between €174,981 and €250,120 per annum
• 5%: Income in excess of €250,120 per annum

While for deduction purposes under the PAYE system, the Income Levy was chargeable on relevant emoluments at different rates for the periods 1 January 2009 to 30 April 2009 and 1 May 2009 to 31 December 2009, it is the composite rates that are to apply for the purposes of calculating the Income Levy due on aggregate income. The aggregate income is charged at the composite rates with credit given for any amount of Income Levy deducted on relevant emoluments under the PAYE system.

Employment/Pension Income Details required on the Form 11

The information required is the gross amount of all employment and occupational pension income, and the amount of Income Levy deducted on this income for the following periods:

• 1 January 2009 to 30 April 2009
• 1 May 2009 to 31 December 2009

Employees should have received a 2009 Income Levy Certificate(s) along with their P60 from their employer. The certificate will detail the amount of Income Levy deducted for the periods above. Where there is employment/pension income, this part of the Form 11 return must be completed.

Practitioners are reminded that they should have this information in advance of the return filing date, as it is not possible to file a return through ROS without this information. Revenue has stated that where a paper return is filed without this information, it will be returned for proper completion.

PRSI on Exempt Income

PRSI due on certain tax exempt income will be included in the Income Tax assessment for the years 2009 et seq.

PRSI is chargeable on the following tax exempt income:

• Artist's income (section 195 TCA 1997).
• Woodland income (section 232 TCA 1997).
• Childcare income (section 216C TCA 1997) – special flat rate of €253 on the childcare income, in addition to any other PRSI due.

EBrief 15/10 is reproduced here.