Robert Troy (Longford-Westmeath, Fianna Fail)
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178. To ask the Minister for Finance if a couple earning under €36,000 as a pension will not be subject to USC following new guidelines issued in budget 2018; and if this change will come into affect in January 2018. [46677/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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It is unclear from the Deputy’s question whether the earnings of under €36,000 refer to the pension of one individual or the combined pension income of both individuals in a couple.  It is also unclear if the question refers to Social Welfare pension income and/or to occupational pension income. 

The Universal Social Charge is an individualised tax, meaning that a person’s liability to the tax is determined on the basis of his or her own individual income and personal circumstances. Therefore the USC liability may differ depending on the split of income between the individual members of the couple.

It is therefore not possible to provide a detailed reply to the Deputy’s question.  However, I would point out that social welfare pensions are not liable to the USC and are not taken into account in determining the income of an individual for USC purposes.  The current entry threshold to USC is €13,000, therefore a pensioner would be within the scope of USC only if he/she personally has income, other than State pension or other social welfare income, exceeding €13,000.

The Deputy will be aware that, in Budget 2018, I have continued to fulfil the Government’s commitment to make steady and sustainable progress in reducing the income tax burden, with a particular focus on low and middle income earners. Therefore, should the couple referenced be within the charge to USC, they will benefit from the reduction in the 2.5% USC rate to 2% and potentially also from the reduction in the 5% rate to 4.75%.

Revenue have published a leaflet setting out, in summary form, the tax and USC provisions that are due to come into effect from 1 January 2018 and this is available at