Employment Initiatives 

The Key Employee Engagement Programme (KEEP) has been extended to 31 December 2025 to facilitate the buyback of KEEP shares by an issuing company and increasing the company limit to €6 million. 

The Special Assignee Relief Programme (SARP) is being extended for a further three years until 31 December 2025. The minimum basic salary needed to qualify for SARP is increased from €75,000 to €100,000 per annum. Individuals who are currently availing of SARP are not affected by this change. 

The Foreign Earnings Deduction will be extended to 31 December 2025.

The annual limit for the Small Benefit Exemption has been increased from €500 to €1,000. An employer will be permitted to grant two vouchers to an employee in a single year under the exemption. 

Research and Development Tax Credit

The Finance Bill 2022 will introduce changes to the payment provisions of the Research & Development (R&D) tax credit. These changes are intended to align it with new international definitions of refundable tax credits. The changes are stated to be broadly cost neutral, with no adjustment to the quantum of credit that a taxpayer may claim. Under the proposed changes, the payment will now be made by a new fixed three-year payment system. 

The existing cap on the payable element of the credit is also being removed. In addition, the first €25,000 of a claim will be payable in the first year to provide a cash flow benefit for smaller R&D projects and encourage more companies to engage with the regime. 

Knowledge Development Box

The sunset clause of the Knowledge Development Box (KDB) will be extended for four years to accounting periods commencing before 1 January 2027. The KDB's new effective rate will be 10%, and it is stated that this will come into effect from a date set by Ministerial commencement order, determined by reference to international progress on implementation of the OECD Pillar Two Tax Rule. It is expected that this will occur during 2023. 


The following reliefs have been extended to 31 December 2025:

  • Young Trained Farmer (Stamp Duty) Relief.
  • Farm Consolidation (Stamp Duty) Relief.
  • Farm Restructuring (Capital Gains Tax) Relief.

The Young Trained Farmer and Registered Farm Partnerships stock reliefs have been extended to 31 December 2024. 

There will be accelerated capital allowances for the construction of slurry storage facilities allowing for 50% of expenditure to be claimed over two years.


The Minister confirmed that the 9% VAT rate which is currently in place (i) for electricity and gas supplies, and (ii) to support the tourism and hospitality sectors, will continue until 28 February 2023.

The zero VAT rate will be applied to the following:

  • Newspapers and news periodicals, including digital editions
  • Automatic external defibrillators
  • Period products
  • All non-oral hormone replacement therapies
  • All non-oral nicotine replacement therapies

The flat rate compensation percentage for farmers will be reduced from 5.5% to 5%. 

Section 481 Film Relief

Section 481 relief will be extended from its current end date of 31 December 2024 to 31 December 2028.

Excise Duties

There will be a €0.50 increase on a pack of 20 cigarettes with pro-rata increases planned on other tobacco products.

The Minister has confirmed his commitment to the production of cider by stating that he will implement a revised EU Alcohol Directive option to grant up to 50% excise relief to independent small producers of cider and pear cider (known as "perry"). 

The Excise Reduction will be extended to the end of February 2023. This is noted as a one-off cost of living package and is not planned to form part of the budgetary tax package for 2023.

Compliance Regime

Revenue will conduct a range of targeted projects including PAYE compliance interventions with a focus on share schemes and increased debt management activity. These projects are expected to increase taxpayer compliance and in turn increase the yield of funds to the Exchequer. 

For further information on Budget 2022, please contact Brian Duffy or your usual William Fry Tax contact.