AITI Chartered Tax Adviser

What is Employee(PAYE) tax credit?

You can claim this tax credit if you pay tax through the PAYE system.
The tax credit is the lower of:
(a) €1,650, and
(b) your employment earnings for the year,
multiplied by the standard rate of tax.
If you are a married couple assessed jointly, each of you is entitled to the tax credit which you would have been entitled as a singly assessed person.

You are not entitled to this tax credit if you are a proprietary director (i.e., a director who can control more than 15% of the ordinary share capital of a private company) or the spouse or child of such a director. However, a child may claim the PAYE tax credit if the child is not a proprietary director, and he/she:
(a) pays tax and PRSI through the PAYE system,
(b) is a full-time employee of the company throughout the tax year,
(c) earns not less than €4,572 from the company in the tax year.