As widely anticipated, the Budget focused mainly on cutting expenditure, but also included various taxation measures.

The tax highlights…

• No changes to income tax rates, income levy, or PRSI for 2010.
• Universal social contribution scheme to replace PRSI, the health levy, and income levy to be introduced in 2011
• No change to income tax bands, allowances or credits
• Increase in effective tax rate for high earners to 30% (plus PRSI and levies) for 2010
• Non-resident Irish nationals or Irish domiciled individuals with worldwide income in excess of €1m and Irish located capital in excess of €5m will be subject to an Irish domicile levy of €200k per annum
• Introduction of a carbon tax at the rate of €15 per tonne
• Reduction in rates of excise duty on beer and cider, wine and spirits. No change to rates of duty on tobacco products.
• Introduction of car scrappage scheme for cars of ten years and older
• Decrease in standard VAT rate from 21.5% to 21%
• Further enhancements to the R&D tax credit regime and Intellectual Property regime may be included in the Finance Bill
• Measures to bolster Ireland’s competitiveness as a centre for international financial services to be introduced in the Finance Bill
• Reiteration of commitment to 12.5% corporation tax rate

This is an extract from the PWC Budget Report. For further details please view their budget report here