Thanks for the replies people
So profit from the sale of shares, it's safe to just divert 33% of the profits for CGT (minus the yearly exemption of €1,270), right? Which needs to be paid within the calendar year, and filed for by the next financial year?
And dividend income falls under income tax. So I'll try do an example to help better understand it:
I'm not married, and lets say earn €55k gross /year, and lets just say €3k in dividends. So my employer does all my normal tax stuff, so I just sort the €3k out, right?
Higher rate €3,000 @ 40% due to being in the higher tax bracket = €1,200
USC €3,000 @ 4.5% on €3k = €135
PRSI €3,000 @ 4% on €3k = €120
Bringing total tax due to:
€1,455 (net income is thus €1,545)
This post will be deleted if not edited immediately they really shaft you don't they? This doesn't feel right though. It seems as though you are taxed on income you don't see. Like if you are taking away USC and PRSI on income that is already taxed by the income tax, this just feels wrong. Perhaps I'm going off here.
Is the above calculation correct, or do you calculate the USC, & PRSI on the remainder after the income tax is taken out like so:
Higher rate: 3,000 - 40% = €1,800 remaining
USC: 1,800 - 4.5% = €1,719 remaining
PRSI: 1,719 - 4% = €1,650.24 net income left over (total tax paid:
€1,349.76)
Appreciate any further guidance!