Oireachtas Joint and Select Committees
Wednesday, 6 March 2013
Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance
Finance Bill 2013: Committee Stage
11:00 am
Michael Noonan (Limerick City, Fine Gael) | Oireachtas source
If it was introduced in the budget, it would amount to €71 million over two tax years - this year and next year. The break was somewhere around €38 million and whatever adds up to €71 million for the next year.
Deputy Pearse Doherty's point needs an answer. Any person who has been self-employed with self-employed income exceeding €100,000 will pay at a rate of 10% on the excess amount over €100,000. A pensioner in receipt of a pension is taxed under PAYE and the rate of USC will be a maximum of 7%. In cases of combined incomes, for example, a pension from PAYE income and income from self employment, differentiation will be made and they will be treated separately. The rate of 10% will be applied to the self-employed income. The key to the Deputy's query is that, for the purpose of 128(2), relevant income shall not include any amount in respect of which an individual is chargeable to tax under Schedule E in accordance in with section 128(2). It is a distinction between how one is taxed as a PAYE worker or as a self-employed worker. That is included in the section.
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