Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I thank Deputy Nash for raising this issue. The domicile levy was introduced in the Finance Act 2010, as he said, to ensure Irish-domiciled individuals who met certain criteria would make a contribution to the Exchequer, irrespective of where they were resident for tax purposes. The purpose of the levy is to ensure individuals with substantial income and assets located in the State will make some sort of contribution to the Exchequer.

The levy is payable, on a self-assessment basis, on or before 31 October in the year following the valuation date. For example, the due date in respect of 2021 was 31 October 2022. Based on the most up-to-date figures provided to me by Revenue, as the Deputy noted, 13 domicile levy returns filed for 2021 incurred a liability for the levy for that year. The amount of the levy collected by Revenue in 2021 was just over €1.6 million, while returns for 2022 are not due to be filed until the end of this month.

To be liable for the levy, an individual must satisfy all qualifying criteria, one of which is that the person must have had an Irish income tax liability of less than €200,000 for the year. In cases where the individual has an Irish income tax liability that exceeds €200,000, he or she will not be liable for the levy.

The operation of the levy is kept under review by my Department and I understand Revenue carries out ongoing compliance activity in this area. The domicile levy will be further considered by my Department in the context of a planned examination and review of the remittance basis of tax in 2024. This review will include a public consultation, which will be published in the coming months.

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