Éamon Ó Cuív (Galway West, Fianna Fail)
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To ask the Minister for Finance if the universal social charge was deductible in 2011 from all income; if there is an exemption from USC in 2012 if a person's income is under €10,036; and if he will make a statement on the matter. [43664/12]

Michael Noonan (Limerick City, Fine Gael)
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The Universal Social Charge (USC) was introduced in Budget 2011 and came into effect on 1 January 2011. It replaced the Income Levy and Health Levy. It is a charge payable on gross income, including notional pay, after any relief for certain trading losses and capital allowances but before pensions contributions.

An individual whose total income does not exceed €10,036 in 2012 (€4,004 in 2011) is exempt from USC. Furthermore, Department of Social Protection (DSP) payments are also exempt along with income already subjected to Deposit Interest Retention Tax (DIRT).

Where an individual's total income exceeds the annual threshold of €10,036 per annum, all income is subject to USC. In this way the rates of USC are progressive.

It should be noted that a lower rate of USC applies to individuals aged 70 years or over and also to full medical cards holders. This is a transitional measure which will be in place until end 2014, after which the standard rates of USC will apply to those aged 70 years or over and also to full medical card holders. Full details regarding the USC can be obtained on the Revenue Commissioners website at the following link