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Budget 2014 announced

Ireland

The Irish Budget 2014 has been announced, with the primary aim of facilitating Ireland's exit from the EU/IMF programme, which is hoped will occur before the end of the year. Taxand Ireland highlights the key tax measures introduced by the new Budget. 

Corporate Tax

  • Corporate tax remains the same at 12.5%

International Tax Strategy

  • Publication of Ireland’s International Tax Strategy statement reiterating Ireland’s support for the BEPS project and including the introduction of measures which ensure that Irish corporations must be resident in at least one jurisdiction for tax purposes

DIRT & Exit Taxes on life assurance policies and investment funds

  • Increased to a rate of 41% from 1 January 2014

Banking Levy

  • Introduction of a levy on banking institutions for the period 2014 to 2016 inclusive

Rates & Bands

  • No change to income tax, universal social charge or PRSI rates and no narrowing of tax bands

Top Slicing Relief

  • Abolished in its entirety for all ex-gratia lump sums in respect of termination and severance with effect from 1 January 2014

Standard Fund Threshold

  • Maximum allowable pension fund at retirement for tax purposes to be reduced (from its current level of €2.3m) to €2 million in 2014

CGT Relief

  • CGT relief introduced in the Finance Act 2012 to be extended to properties purchased up to 31 December 2014

Home Renovation Incentive Scheme

  • New Home Renovation Incentive Scheme to provide relief to homeowners who carry out renovation and improvement works to their principal private residences in 2014 and 2015

Real Estate Investment Trusts (REITs)

  • Immigrant Investor Programme to be extended to include investments in REITs in Ireland

Discover more: Budget 2014 announced


Your Taxand contact for further queries is:
Sonya Manzor
T. +353 1 639 5213
E. sonya.manzor@williamfry.ie

Also published in Thomson Reuters' Taxnet Pro, 17 October 2013

Taxand's Take

A number of pro-business measures were announced, including improvements to the R&D regime and a package of 25 measures designed to support entrepreneurship, jobs and growth. The Minister for Finance confirmed Ireland’s steadfast commitment to the 12.5% corporate tax rate and published its International Tax Strategy Statement, which reinforces Ireland’s open and transparent tax system and its support for the OECD’s Base Erosion and Profit Shifting (BEPS) project. DIRT and exit tax on life assurance policies and investment funds are due to increase to 41% from 1 January 2014. On a positive note, no changes were made to income tax, capital tax or VAT rates.

Taxand's Take Author