Taxation of DSP payments

How DSP payments are taxed

Taxable Department of Social Protection (DSP) payments are liable to Income Tax (IT), but not Universal Social Charge (USC) nor Pay Related Social Insurance (PRSI). How the tax on DSP payments is collected depends on whether you are either a PAYE taxpayer or self-employed.

If a taxable DSP payment is your only source of income you may not have to pay tax. This is because your tax liability does not exceed your tax credits. If you have a DSP payment and another source of income, you may have to pay tax.

Note

If you are getting a DSP payment, you might get an Employee Tax Credit in addition to your normal tax credits.

PAYE taxpayer

Revenue reduces your annual tax credits and rate band on your Tax Credit Certificate (TCC) to take account of any taxable DSP payments. You can view, print or download your TCC in My Documents in myAccount.

Revenue will make an amended Revenue Payroll Notification (RPN) available to your employer or pension provider so they can collect any tax due.

Self-employed

You must include details of any taxable DSP payments on your Form 11 and pay the tax due when making your annual income tax payment. Please use the Revenue Online Service (ROS) to submit your tax return.

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