Earned Income Tax Credit

Tax credits are used to reduce your overall tax liability. If you are self-employed you can claim an Earned Income Tax Credit. 

Note: The credit available is the lower of:

• €2,000
  or
• 20% of your qualifying earned income

Examples of income that qualifies for the earned income credit includes:

• trading income (Case I and II)
  and
• pay earned by proprietary directors

The credit is not available against your passive or investment income, such as:

• rental income
  or
• deposit interest income

However, it's important to note that if you also qualify for the PAYE tax credit. Although, the combined value of these 2 tax credits can't exceed €2,000.