Section 531AN Rate of charge

(1) For each tax year an individual shall be charged to universal social charge on his or her aggregate income for the tax year-

(a) at the rate specified in column (2) of Part 1 of the Table to this section corresponding to the part of aggregate income specified in column (1) of Part 1 of that Table where the individual is-

(i) aged under 70 years, or

(ii) aged 70 years or over at any time during the tax year and has aggregate income that exceeds €60,000, or

(b) at the rate specified in [column (2) of Part 2 of the Table to this section corresponding to the part of aggregate income specified in column (1) of Part 2 of that Table where the individual is aged 70 years or over at any time during the tax year and has aggregate income that does not exceed €60,000.

(2) Notwithstanding subsection (1) and the Table to this section, where an individual has relevant income that exceeds €100,000, the individual shall, instead of being charged to universal social charge on the amount of the excess at the rate provided for in column (2) of Part 1 of that Table, be charged on the amount of that excess at the rate of 11 per cent.

(2A) For the purposes of subsection (2), relevant income shall not include any amount in respect of which an individual is chargeable to tax under Schedule E in accordance with section 128(2).

Amendments

Finance Act 2012 section 2(3)(a).

(3) Notwithstanding subsection (1) and the Table to this section, where an individual is in receipt of aggregate income which does not exceed €60,000, is aged under 70 years and has full eligibility for services under Part IV of the Health Act 1970, by virtue of sections 45 and 45A of that Act or Council Regulation (EC) No. 883/2004 of 29 April 2004 (OJ No. L166 30.4.2004, p. 1), the individual shall, instead of being charged to universal social charge on the part of aggregate income for the tax year concerned that [exceeds €19,874 at the rate provided for in column (2) of Part 1 of that Table, be charged on the amount of the excess at the rate of 2 per cent.

(3A) Where an individual is chargeable to income tax under Case IV of Schedule D in respect of an encashment amount, or a deemed encashment amount, as the case may be, under section 787TA, then—

(a) notwithstanding subsection (1) and the Table to this section, the individual shall be charged to universal social charge for the tax year in which the income tax is charged on the full amount so charged to income tax at the rate of 2 per cent, and

(b) the amount so chargeable to income tax shall not be regarded as relevant income for the purposes of subsection (2).

(4) Subsection (3) shall cease to have effect for the tax year 2021 and subsequent tax years.

TABLE

 

Part 1

Part of aggregate income

Rate of universal social charge

(1)

(2)

The first €12,012

0.5 per cent

The next €7,862

2 per cent

The next €50,170

4.5 per cent

The remainder

8 per cent

Part 2

The first €12,012

0.5 per cent

The remainder

2 per cent

 

Amendments

Finance Act 2014 section 2(c)(vi).

Finance Act 2017 section 2(1)(c).

 Finance Act 2018 section 2(1)(b).

Finance Act 2019 section 2.

(5) Subject to subsection (7), where relevant emoluments are paid on 31 December in a tax year or, if that year is a leap year, on 30 or 31 December in that year (referred to in this section as the “relevant date”) to an individual who is paid weekly or fortnightly, the part of aggregate income specified in column (1) of Part 1 or column (1) of Part 2, as appropriate, of the Table to this section shall be increased by the greater of—

(a) where the individual is paid weekly, one-fifty second of the amounts referred to in the appropriate column, and

(b) where the individual is paid fortnightly, one-twenty sixth of the amounts referred to in the appropriate column,

but where the relevant emoluments paid on the relevant date is less than the increase provided in paragraph (a) or (b), as appropriate, the increase in the part of the aggregate income shall be limited to the amount of the relevant emoluments.

Amendments

Finance Act 2015 section 2(1)(b).

Finance Act 2016 section 2(1)(c).

(6) Where subsection (5) applies in respect of an individual, each amount of aggregate income referred to in subsections (1) and (3) and section 531AM(2) shall be increased by the greater of—

(a) where the individual is paid weekly, one-fifty second of the amount, and

(b) where the individual is paid fortnightly, one-twenty sixth of the amount,

but where the amount of the relevant emoluments paid on the relevant date is less than the increase provided in paragraph (a) or (b), as appropriate, the increase shall be limited to the amount of the relevant emoluments.

Amendments

Finance Act 2015 section 2(1)(b).

Finance Act 2016 section 2(1)(d).

(7) Subsection (5) shall not apply where—

(a) the normal day on which relevant emoluments are paid to an individual during a tax year changes either during that year or the preceding year, or

(b) a payment of relevant emoluments occurs on a relevant date and that date is not the normal day on which relevant emoluments are paid to an individual.

(8) A reference in subsection (7) to the normal day is a reference to the day during the weekly or fortnightly cycle, as the case may be, on which relevant emoluments are paid to the individual concerned.