Preliminary Tax is an estimate of your total tax bill for the year which you pay on the 31st of October every tax year. Its important to remember that preliminary tax also includes PRSI, Health Levy and Income Levy
The amount of Preliminary Tax paid for any year is not less than the lower of:
90% of the final liability for the current tax year
The final liability to tax for the immediately previous year (100% Rule) or
105% of the final liability for the pre-preceding year where the Collector- General is authorised to collect tax by direct debit.
Tax flow can be improved by choosing which preliminary tax to pay. For example if your sales have increased dramatically in the current tax year it is cashflow advantageous to pay 100% of the last years tax bill
i intend to let my house in dublin , i have been to the the tax office and been informed that any rent i get will be subject to 20% tax (minus 75% of the interest plus expense of maintaining the property)i will allso have to pay a yearly tax to the corporation of 200 euro….she allso informed me that i will have to pay preliminary tax….this confuses me, as she said she couldnt tell me how much that would be, and im confused if it is indeed an estimate of the income tax i have to pay, or a another seperate tax intirely i have to pay.
i need clarification and would appreciate any explanations you may offer
I am doing my first year returns (started sept 2015 sole trader)
I have 500 prsi to pay do I have to pay a further 500 as well now for prelimanary tax I can find this info anywhere