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Saturday, 19 May 2012

Tax refund from Ireland

Most employees in Ireland pay tax through the Pay As You Earn system. This means that tax is taken directly from wages and is allocated to the Irish tax office (Revenue). 60% of foreign employees who work in Ireland have a claim to a tax refund. Request a tax refund from Ireland and enjoy the advantages which we offer you. A tax refund from Ireland must be requested within four years.

A claim for a tax refund from Ireland arises if:

  • during your employment in Ireland an incorrect level of tax credit was apportioned
  • your employment ended prior to the end of the tax year
  • you didn’t work during the entire tax year
  • you got married during the tax year

Pay Related Social Insurance refund (PRSI Refund)

If you earned less than € 352 per week in Ireland, you are not obliged to pay insurance. If insurance was withheld from your wages, then you have a claim for PRSI refund in the full amount. If you earned more than € 352, you can still obtain overpaid insurance from Ireland (PRSI Refund). The average amount of PRSI Refund is more than € 300.

Insurance in Ireland is withheld from wages regularly each week. If you had an irregular income or you didn't work for the entire tax year in Ireland, it is probably that you are entitled to a PRSI Refund. You can request PRSI Refund from Ireland for up to four years retroactively.

    How to prevent paying too much tax

    It is important that you make sure that tax is withheld from your wages in the correct amount from the start of your job. In order to avoid paying higher taxes than is necessary, you need to do two things from the start of your job:

    • provide your employer with a Personal Public Service Number (PPS No). This is a unique identification number for public services and employment in Ireland. Your employer will report your employment along with your PPS Number to tax office at the start of your employment.
    • request confirmation regarding the level of your tax credit. You can request confirmation of your tax credit level from the Irish tax office (Revenue) by filling out Form 12A.

    A tax credit consists of different allowances to which you may have a claim. Everyone has a claim to a personal tax credit, but you may also request allowances for health insurance or interest on a mortgage. Details about Tax credits nad Standard Rate Cut-Off Point are available on the Web site of the Irish tax office (Revenue).

    If you were not assigned a correct tax credit, it’s very likely that you have a claim to a tax refund from Ireland. A tax credit decreases the level of tax which is withheld from wages. The amount of gross tax depends on the amount of income. Subsequently, the tax credit is deducted from the gross tax. The resulting sum is the tax obligation. If your tax obligation is lower than the real amount of tax withheld, then you have a claim to a tax refund from Ireland. You can calculate the level of your tax overpayment using the tax calculator.

    Forms for a tax refund from Ireland

    Official tax forms P45 and P60 are used for claiming a tax refund from Ireland. Copies of forms P45 and P60 are acceptable to the Revenue. Forms P45 and P60 are not standardly required when requesting PRSI Refund from Ireland. The relevant office, however, may additionally ask for forms P45 and P60. If you do not have forms P45 and P60 we will request them from Ireland for you after your registration.