Dáil Éireann - Volume 675 - 17 February, 2009

Written Answers. - Tax Code.

Deputy Róisín Shortall asked the Minister for Finance the categories of people who are exempt from the income tax levy other than the fact that they are below the income threshold; and the reason for same. [6326/09]

  Deputy Brian Lenihan: The following categories of individuals are exempt from the income levy:

an individual with a gross income of less than €18,304 per annum,

an individual who is entitled to a full medical card and

an individual who is aged over 65 years with an income less than €20,000 for 2009.

In addition, a married couple, where either one or both spouses is aged 65 years or over and whose joint income is less than €40,000, will be entitled after the end of the year to a refund of any income levy that they might have paid. In addition to the exemption from the income levy of certain categories of individuals, certain income sources are also excluded from the scope of the income levy. These include:

social welfare payments and similar type payments made by other Government Departments,

statutory redundancy payments and other redundancy related payments that are relieved from income tax,

payments exempt from income tax on social or other grounds such as payments from the Haemophilia Trust, payments made to thalidomide sufferers, foster care payments and other similar type payments.

A full list of such exempt income is available in Appendix A and B of the document “Frequently Asked Questions on the income levy” which is posted on the Revenue website. These categories of individuals and income sources have been exempted from the income levy on social and equity grounds, mainly with a view to protecting the most vulnerable in our society.