Irish Budget Overview

The details were set out by Ireland’s Minister for Finance on Tuesday 10th October 2017. The total budget adjustment for 2017 is €1.3 billion, weighted at about 3:1 between spending increases and taxation cuts.

Corporation tax rate will remain at 12.5 per cent and remains lower than the United Kingdom and many other EU countries. Furthermore, due to the numerous double taxation agreements Ireland has in place, Ireland still remains attractive for International Holding and Trading companies.

Non- Domicile Legislation – there has been no change in the Irish Non-domicile legislation, which makes Ireland an attractive location for residence and for individuals to take advantage of.

The reduced VAT rate of 9 per cent for the tourism and hospitality industry (rather than the standard rate of 13.5 per cent) is to stay in place this year.

The rate of capital gains tax on qualifying asset disposals has been reduced from 20 per cent to 10 per cent, up to a limit of €1 million in chargeable gains.

The point at which capital acquisitions tax will apply to gifts from parents to children is being increased by €30,000 to €310,000.

A help-to-buy scheme for first-time buyers will involve a 5 per cent PAYE rebate of up to €20,000 over four years on new homes worth up to €400,000. Buyers of homes costing between €400,000 and €600,000 will also be entitled to the €20,000, though the percentage of the purchase price this equates to will be lower.

The only taxation increase is an extra 50 cent being added to the price of a packet of 20 cigarettes. The excise on alcohol and fuel is being left unchanged.

Ireland Taxes 2017-2018

  • Corporate Tax Rate 12.50
  • Personal Income Tax Rate 48.00
  • Sales Tax Rate 23.00
  • Social Security Rate 14.75
  • Social Security Rate For Companies 10.75
  • Social Security Rate For Employees 4.00

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