Latest News

Ireland's Budget 2012: the key points

With debate still continuing over Ireland’s 2012 Budget – the first of what is set to be a series of austerity budgets designed to get the country’s deficit under control by 2015, in line with the EU/IMF Programme of Support – Copsey Murray has provided a roundup of the key points.

They include a measure that may be of interest to UKbased companies considering establishing in Ireland, although full details will not be available until the Finance Bill is published in February 2012.

Under the measure, designed to support efforts by multinational and Irish firms to expand into BRICS countries, individuals who spend more than 60 days per year developing markets for Ireland in Brazil, Russia, India, China and South Africa may qualify for a targeted foreign earnings deduction.

Other significant measures included a two per cent increase in the standard rate of VAT to 23 per cent and there were no increases in income tax rates.Key points

• Capital Gains and Capital Acquisition (gifts and inheritances) tax rates increased to 30 per cent
• Capital Acquisitions Tax Group A threshold reduced to €250,000
• Entry point to Universal Social Charge increased from €4,004 to €10,036
• Deposit Interest Retention Tax (DIRT) rate increased to 30 per cent
• Minor changes to Mortgage Interest Relief
• Stamp Duty on nonresidential property reduced to two per cent
• CGT Exemption for properties bought between now and end 2013
• Legacy property reliefs changes being abandoned
• Surcharge on legacy property reliefs for individuals with gross incomes in excess of €100,000
• No changes to High Earner Restriction
• Introduction of Special Assignee Relief Programme
• Statutory redundancy rebate to employers reduced from 60 per cent to 15 per cent
• Student registration fees increased by €250 to €2,250
• Child Benefit reduced for third and subsequent children
• Fuel allowance – number of payments cut from 32 to 26 weeks
• Introduction of household charge of €100.

Copsey Murray’s more detailed overview of Budget measures can be viewed here.