Changes in income taxes

• Average reduction of 10% in all tax credits

                                             2011                2010

                                                    €                      €

• Single                           1,650               1,830
• Married                         3,300               3,660  
• PAYE                            1,650               1,830  
• Average reduction of 10% in the standard rate bands

                                               2011                2010

                                                   €                      €

• Single, widowed            32,800             36,400
• Married one income       41,800             45,400
• Married two incomes      65,600             72,800
• One parent, widowed     36,800             40,400
• Reduction of 10% in the transferability of bands between spouses
• Employees PRSI ceiling removed
• Increase in the PRSI rate for the self-employed, higher earning public servants and office holders

New Universal social charge (USC)

• To incorporate Health Levy and Income Levy (not PRSI), rates as follows:
  • 0% < €4,004
  • 2% €0 - €10,036
  • 4% €10,037 - €16,016
  • 7% > €16,016
  • Overall very top earners combined top rate was 14%, now 11%

RCT (Relevant Contractors Tax) Reform

• 20% rate for tax registered subcontractors
• 35% rate for not tax registered subcontractors
• Abolition of the monthly repayment scheme and replacement with an offset scheme (i.e. RCT can only now be offset against other taxes and not repaid)