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.

Start-Up Exemption

  • The 3 year relief for start-up companies will be extended to new business start-ups until the end of 2018.

Employer’s PRSI

  • 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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