• Modest changes to USC
• Income tax rates remain the same
• Increase to the income tax standard rate bands
• Increase to earned income credit of €200 for self-employed individuals
• Increase in home carer tax credit
• Relief for 100% of interest paid by landlords on residential properties with effect from 1 January 2019

• Extension of three-year exemption from corporation tax
• Changes to the Key Employee Engagement Programme introduced last year which treats profits as subject to capital gains tax in place of income tax
• 0% benefit-in-kind for electric vehicles of up to €50,000 extended for three years
• Accelerated capital allowances for employer-provided fitness and childcare facilities
• Accelerated capital allowances for gas-propelled vehicles and refuelling equipment
• Increase in employer contribution to National Training Fund levy

Exit tax

As part of Ireland’s commitment to implementing the Anti-Avoidance Tax Directive, Budget 2019 introduced an exit tax regime which takes effect from Budget night.

The tax will arise where companies migrate or transfer assets offshore and are no longer within the scope of Irish tax. An exit tax at 12.5% will apply to all unrealised gains.

Controlled foreign company (CFC) rules

Budget 2018 announced that the government would introduce controlled foreign company (CFC) rules, to prevent the diversion of profits to offshore entities in low-tax or non-tax jurisdictions. To date, CFC rules have not been part of the Irish tax regime. Budget 2019 confirms that CFC rules will apply for accounting periods commencing on or after 1 January 2019.

Transfer pricing

The Minister has also committed to carrying out a review of the existing transfer pricing legislation to ensure that it is in line with international best practice.

The Minister has announced that the VAT rate on tourism-related services is to increase from 9% to 13.5%. This increase will apply to catering and restaurant supplies, tourist accommodation, cinemas, theatres, museums, hairdressing, horses, greyhounds, amusement parks, historic houses and open farms.

The reduced VAT rate of 9% for newspaper publications and sporting facilities will remain for 2019.

The VAT rate on electronically supplied newspapers and e-books will be reduced from 23% to 9%.

These measures will take effect from 1 January 2019.

Tax-free threshold for gifts/inheritances from parents to children increased from €310,000 to €320,000

Group thresholds are as follows:

Parental leave

A new paid parental leave scheme will be introduced to provide two extra weeks’ leave to every parent of a child in their first year. It is planned to increase this to seven extra weeks.

Minimum wage

Increase in minimum wage from €9.55 to €9.80 with effect from 1 January 2019.

Betting

Betting duty on customers is to be increased to 2% on all bets placed in the State while the commission earned by betting intermediaries has increased from 15% to 25%.

VRT relief

Extension to the VRT relief for conventional hybrids and plug-in electric hybrids to 31 December 2019.

Cigarettes

Price of 20 cigarettes to rise by 50c from midnight 9 October 2018. All tobacco products will be chargeable to a minimum excise duty of €11 even if sold at a price lower than this

Future growth loan scheme

As part of the Government’s Brexit response, a number of measures are being introduced in Budget 2019.

Further to the €300 million invested through the new Brexit loan scheme last year, a new future growth loan scheme is being introduced for SMEs and the agriculture and food sector providing up to €300 million. Other provisions include a fund of over €110 million for the introduction of Brexit measures across a number of departments.

Stock relief

Stock relief measures previously announced are being extended up to 31 December 2021.

Averaging of farm profits

The averaging of farm profits regime is being extended to include off-farm trading income.

Young trained farmers

Stamp duty relief for young trained farmers involved in agricultural land transactions is being extended up to 31 December 2021.

Increased funding

Current expenditure funding of €57 million for the Department of Agriculture, Food and Marine. In addition to this, €60 million in current and capital Brexit-related supports will be provided to strengthen the sector’s ability to meet the challenges of Brexit.

Additional €53 million in capital funding to finance the first round of projects under the new Rural Regeneration Development funds.