INCOME TAX EXEMPTION
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
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.