5 December 2012

Budget 2013 highlights

Budget 2013 - Ireland
Please find attached our budget highlights and summary report for Ireland, budget delivered on the 5th December 2012.

Major Highlights:
  • The much hyped local property tax at 0.18% (thin edge of the wedge coming into effect in July 2013.);
  • PRSI badly hit – increase in minimum annual PRSI contribution for self-employed earners and removal of weekly PRSI allowance from full rate and modified rate of PRSI contributions (estimated to bring in over 300 million for the government in 2013);
  • Maternity benefit taxable from 1 July 2013;
  • Deposit interest rentention tax (DIRT) increased 33% or 36% (for interest payments made less frequently than annually);
  • Capital gains tax and Capital acquisitions tax increased to 33%;
  • Pre-retirement access to funded additional Voluntary contributions;
  • VAT Cash accounting threshold increased to 1.25 M;
  • USA and Ireland implementation of FATCA (Foreign Account Tax Compliance Act) – providing automatic exchange of information between the Irish and US tax authorities;

For further information on the changes to the scheme of tax relief for donations to charities and approved bodies or any other issue please contact us.

Addition links:
  1. Taxation annexes to the budget: http://budget.gov.ie/Budgets/2013/Documents/Taxation%20Annexes%20to%20the%20Summary%20of%202013%20Budget%20Measures.pdf
  2. Assistance for Small and Medium Enterprise (SMEs): http://budget.gov.ie/Budgets/2013/Documents/Budget%202013%20-%20Presentation%20on%20SME%20Sector.pdf
  3. Summary of 10 point tax reform plan to help small business (nnex D to 2013 budget): http://budget.gov.ie/Budgets/2013/Documents/Annex%20D%20-%20SME's.pdf
  4. Economic and Fiscal outlook 2013: http://budget.gov.ie/Budgets/2013/Documents/Budget%202013%20-%20Economic%20and%20Fiscal%20Outlook.pdf

Thankfully we haven’t had to adjust our VAT calculator this year and the dreaded potential vat increase to 24% hasn’t materialised. Our vat calculator is available as a free download for android at the Google Play store here:

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