In these troubled financial times there’s not much good news to report and the most successful businesses will be those with a clear control of their cost base, a structured approach to credit control and an understanding of the problems being faced by their clients.

Recent changes announced by the Minister for Finance, Brian Lenihan, in his budget statement for 2009 include:

VAT and CGT have all increased along with a new Income Levy of 1%. One particularly interesting highlight is the 3 Year tax exemption for Start-up Companies

It’s not all doom and gloom however, and New start-up companies which commence trading in 2009 will be exempt from corporation tax and capital gains tax in each of the first 3 years provided that their tax liability in the year does not exceed €40,000.

Currently this measure is being examined to ensure that it is in compliance with EU rules on State-Aid and will be followed up on in the Finance Bill. This is very pro business and investment move by the government.

The full Revenue brief can be downloaded as a PDF file at the address below, or contact Nolan & Associates, Chartered Accountants for further information at www.nolanassociates.com

http://www.revenue.ie/budget/budget2009/summary.pdf

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