Corporation tax rate

As in previous years, there is a firm commitment given to retain the 12.5% corporation tax rate as a key part in Ireland’s strategy to attract foreign direct investment.

Employer’s PRSI

As a result of changes in the training levy, employer’s PRSI will increase to 10.85% in 2018, proposed 10.95% in 2019 and 11.05% in 2020.

Capital allowances for intangible assets

A tax deduction for capital allowances on intangible assets and any associated interest cost will now be limited to 80% of the relevant income arising from the intangible asset in the accounting period.

Key Employee Engagement Programme (KEEP)

This is a new scheme aimed at improving the ability of SMEs to attract and retain key staff. Where an SME grants share options to employees between 1 January 2018 and 31 December 2023, gains from exercising these options will be taxed at a CGT rate of 33% rather than being subject to income tax, USC and PRSI at rates of up to 52%. The tax becomes payable when the shares are sold.

Accelerated capital allowances for expenditure on energy-efficient equipment

The current scheme is being extended for a further three years to the end of 2020.