Taxes Consolidation Act 1997 section 472

Employee tax credit

Section 472 provides for the employee tax credit (also known as the PAYE tax credit), which is available to individuals whose income is subject to the PAYE system of tax deduction.

• The credit is the lesser of 20% of emoluments and €2,000; in a jointly assessed couple, each spouse or civil partner may claim separately against their own emoluments.
• Certain emoluments are excluded: those paid to a proprietary director, or to the spouse, civil partner or child of a proprietary director or self-employed individual, do not qualify.
• Children of proprietary directors or self-employed individuals may nonetheless qualify if they are in full-time employment throughout the year, earn at least €4,572, and are a specified employed contributor or have PAYE operated on their income.
• Irish residents working abroad under a foreign PAYE-type system, who are also fully taxable in Ireland under Schedule D, may claim the credit in respect of those earnings.