Corporation Tax Rate
- The commitment to the 12.5% corporation tax rate has been reiterated.
Intellectual Property Regime
- Details of the “Knowledge Development Box” income-based tax regime for intangible assets were announced. A corporation tax rate of 6.25% will apply to profits arising from the exploitation of certain patents and copyright software which result from qualifying R&D carried out in Ireland.
- The regime has been announced as OECD compliant in light of the ongoing actions being undertaken by the OECD in relation to Base Erosion and Profit Shifting (BEPS).
- Ireland will deliver a “best-in-class” regime to compliment existing intangible asset and research and development regimes.
- Full details of this measure will be published in Finance Bill 2015.
Employment and Investment Incentive Scheme (Ell)
- The amount of finance that a company can raise under the Ell scheme will be increased to €5m annually and €15m over a company's lifetime. The holding period will be increased by 1 year.
- The Ell scheme will be extended to include investment in medium-sized enterprises in non-assisted areas, the management and operation of nursing homes and internationally traded financial services.
- Investment in hotels, guest houses and self-catering accommodation will also qualify for the Ell scheme for a further 3 years.
International Tax Strategy
- Additional commitment to the OECD BEPS process was announced with the introduction of country-by-country reporting which will increase transparency for tax authorities across borders in relation to multinational companies operating across multiple jurisdictions.
- The 3 year relief for start-up companies will be extended to new business start-ups until the end of 2018.
- An increase in the weekly threshold to €376 at which liability to Employer’s PRSI increases to 10.75% from 8.5%.
Excise Duty Relief for Microbreweries
- Availability of upfront rebate of the special relief reducing the standard rate of Alcohol Products Tax by 50% on beer produced in microbreweries.
Motor Tax Regime
- A simplified regime of motor tax rates for commercial vehicles will apply. The 20 existing rates will be replaced with 5 new rates of commercial motor tax ranging from €92 to €900 introduced. The new maximum rate is down from €5,195. Interim measures will apply pending the replacement of the current commercial motor tax regime with a fairer basis for calculating commercial motor tax.
9% VAT Rate
- The temporary 9% reduced rate of VAT, applicable to the tourism sector, will continue to apply.
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