INCOME TAX EXEMPTION

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Who is eligible for Income Tax Exemption?
Individuals and married couples with small incomes may be exempt from income tax if their income is below certain limits (see table).

What if the income is marginally over these limits?
Where income exceeds the income tax exemption limit, marginal relief is available on incomes twice the relevant exemption limits.

Can a farmer avoid farm accounts to calculate the liability?
Yes. For low income farmers, tax liability can be based on the Farm Profile system. It calculates taxable profits based on the difference between cash receipts and cash payments plus a number of tax adjustments for capital allowances. The farm profile can be obtained (Form AG12) from your local tax office.

Can the Revenue Commissioners review the situation?
Yes. Based on the information provided in the basic farm profile, the tax inspector will decide whether a farmer needs to submit a full tax return based on accounts or a farm profile.

How often is the situation reviewed?
The tax inspector contacts the farmer every 3 years to review the circumstances. If a farmer's circumstances change which results in an increased income, the farmer should notify the inspector of taxes. This may result in a requirement to submit an annual return of income based on accounts or the farm profile.