Tax Rates
No changes announced to rates of capital gains tax, capital acquisition tax or stamp duty.
Posted at: 05:27PM
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Income Tax
No changes announced to the income tax bands.
Posted at: 05:26PM
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Business Taxation
The scheme of accelerated capital allowances for energy efficient equipment is being extended to include refrigeration and cooling systems, electro-mechanical systems, and catering and hospitality equipment.
Posted at: 05:18PM
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Business Taxation
The Minister awaits the report of the Innovation Taskforce and will explore recommendations in the context of the Finance Bill.
The Minister notes that he shall also be bringing forward changes in the Finance Bill which will strengthen Ireland's competitive edge in the international financial services sector with a view to making Ireland a European hub for the international funds industry.
Posted at: 05:17PM
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Indirect Tax
VRT exemption for electric vehicles and VRT reliefs of up to €2,500 for plug in electric vehicles are being extended by two years until 31 December 2012.
Posted at: 05:14PM
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Other Measures
Preparations are underway to introduce a new water meter system in homes. When introduced, water charges will be based on water consumption above a free threshold.
These charges, like the charge on second homes, will finance the provision of local services by local authorities.
Posted at: 04:52PM
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Income Tax
Homeowners who are now in negative equity whose entitlement to mortgage interest relief would expire in 2010 or after, will now continue to receive relief up to end of 2017.
Posted at: 04:43PM
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Property
Work is to begin shortly on the development of a site valuation tax and the development of a register of land ownership and valuation to facilitate same.
Posted at: 04:38PM
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Indirect Tax
The Minister has announced a car scrappage scheme which will apply from 1 January 2010 to 31 December 2010. The scheme will provide for up to a €1,500 reduction in Vehicle Registration Tax on a new car bought where a car of 10 years old or more is scrapped.
Posted at: 04:34PM
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Indirect Tax
The Minister has announced the following reductions in excise on alcohol products as follows:
- 12 cent reduction on a pint of beer and cider.
- 14 cent reduction on a half glass of spirits.
- 60 cent reduction on a bottle of wine.
These changes are effective from midnight 09 December 2009.
No changes are being made to the rate of excise on tobacco products.
Posted at: 04:32PM
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Business Taxation
No change to the 12.5% corporation tax rate.
The three year corporation tax and capital tax exemptions which is available to new start ups in 2009 will be extended to new start ups in 2010.
Posted at: 04:30PM
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Income Tax
Qualifying loans taken out before 1 July 2011 will continue to get relief at current levels for seven years. From 1 July 2011 transitional arrangements will apply.
Mortgage interest relief to be abolished by 2017.
Posted at: 04:30PM
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Indirect Tax
The 21.5% VAT rate will reduce to 21% from 1 January 2010.
Posted at: 04:25PM
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Public Service Pension Scheme
New pension scheme for all new public service entrants to be introduced in 2010. This will be based on career average earnings rather than final earnings at date of retirement as currently applies.
The minimum public service pension age is being increased to 66 years of age from 65 years of age. Legislation will be introduced in 2010 to give effect to these measures.
Posted at: 04:23PM
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Other Measures
The NTMA will establish in early 2010 a new investment opportunity in a National Solidarity Bond. The bond will be open for investment by ordinary citizens early in the new year. The bond will be in addition to the current range of "state savings" products.
Posted at: 04:20PM
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Income Tax
The specified reliefs regime to be amended to ensure a minimum effective income tax rate of 30% (on top of PRSI and levies) for high earners availing of various tax incentives. The entry point to the restriction will now occur at adjusted income levels of €125,000 with the full restriction applying at €400,000.
Posted at: 04:11PM
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Budget Framework / Other Measures
The Minister has announced the following reductions in Public Sector pay:
The salary of the Taoiseach will be reduced by 20%.
Ministers and secretaries general of government departments will have a pay-cut of 15%.
Public Servants earning 200,000 or more will have a 15% pay reduction.
Public Servants earning from 165,000 to 200,000 will have a 12% pay reduction.
Public Servants earning from 125,000 - 165,000 will have an 8% pay reduction.
Other Public Servants' pay reductions which will effect from 1 January 2010 include:
A 5% reduction on the first 30,000 of income.
A 7.5% reduction on the next 40,000 of income
A 10% reduction on the next 55,000 of income.
Posted at: 04:10PM
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Income Tax
The National Pensions Framework will separately consider the tax treatment of lump sums above €200,000. The Minister accepts the Commission on Taxation's recommendation that pension lump sums less than €200,000 should not be taxed.
Posted at: 04:09PM
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Income Tax
Irish non-resident nationals and domiciled individuals will pay €200,000 in any year where their worldwide income exceeds €1m and their Irish located capital exceeds €5m. This will apply regardless of where the individual is tax resident. Details to be announced in the Finance Bill.
Posted at: 04:03PM
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Indirect Tax
Introduction of a carbon tax at a rate of €15 per tonne on fossil fuels. Effective for petrol and auto-diesel from midnight 9 December, for home heating oil and gas from May 2010. Measures for coal and peat are subject to a commencement order. Reliefs to be announced for low-income families.
Posted at: 04:02PM
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Income Tax
The Minister has announced reform of the income tax system to make it more simple, fairer and broader.
The Minister envisages:
- A universal social contribution paid by all workers at a low rate (which will replace the current PRSI/health levy/income levy), and
- income tax will apply on a progressive basis as earnings increase. The objective is to introduce a new income tax system in 2011.
Posted at: 03:59PM
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Budget Framework
The minister has announced that:
1 - GDP has decreased by 7.5% in 2009.
2 - GDP will decrease another 1.25% in 2010 from 2009 levels; however, the Minister expects a return to growth in 6 - 9 months' time.
Posted at: 03:52PM
