Allowable Deductions: \u00a0<\/b>Any expenditure that can be deducted from gross income to reduce the amount subject to income tax before calculating how much tax is due<\/p>\n
Allowable Expenses:<\/strong>\u00a0<\/b>Expenses incurred purely for the trade, i.e. incurred \u2018wholly and exclusively’ for the purposes of the trade. Examples include cost of running vehicles, rent, repairs, and accountancy fees<\/p>\n Assessable Income:\u00a0<\/b>The amount of money considered when calculating tax payments<\/p>\n Asset:<\/b>\u00a0Something with value that you own outright or have an interest in (such as a leasehold)<\/p>\n From Irish tax perspective, is not clearly defined in tax legislation but in general, the asset must be:<\/p>\n Audit:\u00a0<\/strong>Official inspection of your organisation\u2019s accounts<\/p>\n Australian Business Number (ABN):\u00a0<\/b>A unique 11 digit number that identifies your business to the Australian Government<\/p>\n Australian Taxation Office (ATO):\u00a0<\/b>This is the Australian Government\u2019s statutory agency for revenue collection. The ATO collects income tax, goods and services tax, and other federal taxes<\/p>\n AVCs:\u00a0<\/strong>Additional Voluntary Contributions that can be made to your private pension to build up an additional retirement fund<\/p>\n Beneficiary:\u00a0<\/strong>The individual who receives benefits from certain acts. For example, the beneficiary could be a person entitled to benefits from a trust property<\/p>\n Benefit-in-Kind:\u00a0<\/b>Benefits-in-Kind are benefits employees or directors have that are not included in their salaries. They include things like company cars, private medical insurance or free accommodation<\/p>\n Most benefits from employment that are provided in addition to your salary are subject to income tax.<\/p>\n Generally, there are two types of benefits that an employee may get in addition to a salary:<\/p>\n Capital Gain:\u00a0<\/strong>The profit from the sale of a capital asset. Example: Asset such as land, buildings and shares<\/p>\n Capital Gains Tax (CGT):<\/b>\u00a0A type of tax levied on the profit from the disposal of an asset. Tax on gains that arise on the sale of capital assets, items such as land, buildings and shares<\/p>\n Canada Revenue Agency (CRA):\u00a0<\/strong>Canadian federal agency administering tax laws for the Government of Canada and for most provinces and territories<\/p>\n Corporate Income Tax:<\/b>\u00a0A type of tax levied on the income of corporations, usually imposed at the national level<\/p>\n Creditor:\u00a0<\/strong>Person or company to whom money is owed<\/p>\n Deduction (tax):\u00a0<\/strong>A reduction in tax obligation from the taxpayer\u2019s gross income. Deductions are removed from taxable income and thus lower tax liability<\/p>\n Dependant:\u00a0<\/b>Individual who relies on another; for example a child or disabled family member\u00a0<\/strong><\/p>\n Dividends:\u00a0<\/strong>Sum of money regularly paid by a company to shareholders from its profits<\/p>\n DIRT:\u00a0<\/strong>Deposit Interest Retention Tax deducted at source from interest paid on deposits of Irish residents (e.g. from banks, credit unions, etc.)<\/p>\n Domicile:\u00a0<\/strong>Permanent home country of a person or the country they live in and have substantial ties with<\/p>\n Double Taxation Treaty:\u00a0<\/strong>An agreement with two or more countries to reduce how much tax a worker or company must pay, so they don\u2019t need to pay tax twice on the same income<\/p>\n Duty-Free Zone:\u00a0<\/strong>A zone where merchandise can be brought in without import duties<\/p>\n Earned Income<\/strong>: Income derived from paid work\u00a0<\/strong><\/p>\n Effective Tax Rate:<\/strong>\u00a0Used in the US to describe the average rate at which an individual is taxed on\u00a0earned income<\/p>\n Emergency Tax:\u00a0<\/b>The tax an individual pays when it\u2019s not clear what tax band they should be assigned to. To avoid this in Ireland, you should give your employer your PPS, p45 or tax credit certificate<\/p>\n Excise Tax\/Duty<\/strong>:\u00a0<\/strong>A tax on the sale of particular goods<\/p>\n Exempt Income:\u00a0<\/b>Used in the US to describe types of income not subject to federal income tax<\/p>\n Final Cumulative Payslip:<\/b>\u00a0In the US this is a statement you receive with your final paycheck detailing your total earnings and tax paid<\/p>\n Fixed Assets:\u00a0<\/strong>Assets purchased for long-term use and not for immediate resale (for example, land, equipment)<\/p>\n Flat Tax:\u00a0<\/strong>A tax system with a constant marginal rate<\/p>\n Form 8843<\/strong>:\u00a0<\/strong>Statement for Exempt Individuals and Individuals with a Medical Condition. An information statement for the US government used by non-resident aliens<\/p>\n Form P50:\u00a0<\/strong>A form for the first time you claim for a repayment of income tax and\/or USC during unemployment<\/p>\n Form 12:\u00a0<\/strong>In Ireland this is for PAYE employees to declare additional net income up to \u20ac3,174, for non-residents, or claiming other credits that can\u2019t be claimed through the online PAYE system<\/p>\n Form P2<\/strong>: Employee Copy of Tax Credits, Standard Rate Cut-Off Point, Universal Social Charge and Local Property Tax<\/p>\n Form P2c:\u00a0<\/strong>Employers Copy of Employee\u2019s Certificate of Tax Credits, Standard Rate Cut-Off Point, Universal Social Charge and Local Property Tax<\/p>\n Gross Income<\/strong>: The amount of income paid to an employee before any deductions are made<\/p>\n Gross Pay:\u00a0<\/strong>An employee\u2019s pay before any deductions such as tax are made<\/p>\n Home Carer Tax Credit:\u00a0<\/strong>A\u00a0Home Carer tax credit<\/a>\u00a0is given to married couples or civil partners where one individual cares for a dependent. The credit is given in the case of those who are jointly assessed for tax<\/p>\n Health Expenses:\u00a0<\/b>The amount spent on a diagnosis or treatment of medical problems. You may be entitled to a refund of some of the amount you paid for qualifying medical expenses\u00a0<\/strong><\/p>\n Help-To-Buy Incentive<\/strong>:\u00a0<\/strong>A scheme introduced in Budget 2017 for first-time-buyers purchasing newly built homes. This is in the form of a refund of income tax and Deposit Interest Retention Tax paid over the previous 4 years<\/p>\n\n
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E<\/h2>\n
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