Corporation tax rate
No change to the 12.5% corporation tax rate.
Start Your Own Business (SYOB)
Individuals who have been unemployed for a period of at least 15 months prior to starting their own unincorporated business will be exempt from income tax for two years. The maximum exemption from income tax is €40,000 per annum.
Employment and Investment Incentive
The Employment and Investment Incentive will not be included as a specified relief for the purpose of the high earner restriction for three years.
Film relief
Last year the Minister announced a change in the operation of the Film Relief scheme by changing from a tax deduction for individual investors to a tax credit for film companies. This change is being accelerated from 1 January 2016 to 1 January 2015.
To make Ireland more attractive for major film productions expenditure on non-EU talent will now qualify. The Minister also announced the introduction of a withholding tax. EU approval and a commencement order will be required to implement these changes.
Changes to R&D tax credit
A review of the R&D tax credit scheme was completed and this has resulted in some positive changes.
In 2013 the first €300,000 of qualifying R&D expenditure will qualify for the 25% R&D tax credit on a volume basis. Credit will continue to apply to incremental expenditure in excess of €300,000 compared to such expenditure in the base year 2003.
The limit on the amount of expenditure outsourced to third parties that qualifies for relief is increased from 10% to 15% of total spend.
Changes to the key employee relief whereby some of the credit can be used to reduce the key employee’s tax bill will be introduced to make the relief more attractive.
Living City Initiative
This is being extended to cover residential properties built before 1915 and will apply to properties in Dublin, Cork, Limerick, Galway, Waterford and Kilkenny.
Irish registered non-tax resident companies
The Minister announced that he intends to implement changes in the Finance Bill to ensure that an Irish registered company will have to be tax resident in Ireland or another country and can no longer be “stateless”.
