Finance Act 2015

Chapter 2

Universal Social Charge

Amendment of Part 18D of Principal Act (universal social charge)

2. (1) Part 18D of the Principal Act is amended—

(a) in section 531AM—

(i) in paragraph (a) of the Table to subsection (1) —

(I) in subparagraph (IV), by substituting “Schedule 3,” for “Schedule 3, and”,

(II) in subparagraph (V), by substituting “782A(3), and” for “782A(3).”, and

(III) by inserting the following subparagraph after subparagraph (V):

“(VI) emoluments in the nature of a contribution by an employer to a PRSA (within the meaning of Chapter 2A of Part 30).”,

and

(ii) in subsection (2), by substituting “€13,000” for “€12,012”,

and

(b) in section 531AN—

(i) in subsection (3) by substituting—

(I)“€18,668” for “€17,576”, and

(II)“3 per cent” for “3.5 per cent”,

(ii) in subsection (3A)(a) by substituting “3 per cent” for “3.5 per cent”,

(iii) by inserting the following after subsection (4):

“(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—

(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.

(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—

(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.

(7) Subsection (5) shall not apply where the normal day on which relevant emoluments are paid to an individual, who is paid weekly or fortnightly, during a tax year changes either during that year or the preceding year.”,

and

(iv) by substituting the following Table for the Table to that section:

“TABLE

PART 1

Part of aggregate income

Rate of universal social charge

(1)

(2)

The first €12,012

1 per cent

The next €6,656

3 per cent

The next €51,376

5.5 per cent

The remainder

8 per cent

PART 2

Part of aggregate income

Rate of universal social charge

(1)

(2)

The first €12,012

1 per cent

The remainder

3 per cent

”.

(2) (a) Subsection (1), other than subparagraph (iii) of paragraph (b), applies for the year of assessment 2016 and each subsequent year of assessment.

(b) Subsection (1)(b)(iii) applies for the year of assessment 2015 and each subsequent year of assessment.