An individual aged 65 or over with total income below €18,000 is exempt. In the case of a married couple, one of whom is aged 65 or over, the threshold is €36,000.
If the claimant has dependent children, the exemption limit is increased by €575 for each of the first and second child, and €830 for the third child and each subsequent child.
The other main exemptions from income tax are:
(b) Income of artists, writers and composers, subject to an overall annual limit of €50,000 (s 195).
(e) Income of amateur sports bodies (s 235).
(f) Rent from let farm land (s 664). A claimant must be aged 55 or over, or unable through physical or mental incapacity to carry on farming. Exemption is given for the lower of:
(i) the farm rental income surplus, or
(ii) €40,000 where the lease is for more than 14 years, €30,000 where the lease is for 10 to 14 years, €22,500 where the lease is for seven to 10 years, or €18,000 in any other case.
(g) Rent-a-room relief (s 216A). Income from lodgers is exempt provided your gross income from such letting does not exceed €14,000 in the tax year.
(h) Home childcare earnings of up to €15,000 in the tax year (s 216C).
(i) Earnings of special assignees (s 825C). 30% of income above €75,000 in the case of employees assigned from a tax treaty country to work in their employer’s Irish operation.
(j) Start Your Own Business relief (s 472AA). Where a person previously long-term unemployed sets up a business, the first €40,000 of profits in a tax year are exempt. Expires 31.12.2018.