Finance Minister Michael Noonan has today unveiled the Government’s much-heralded ‘Jobs Budget’, including the following tax measures:
A levy of 0.6% is to be applied on the capital value of pension assets held within the State.
Employers PRSI on lower-paid employees is to be halved. This will apply until the end of 2013 for employees earning less than €356 per week (not the figure of €365 per week as announced by the Minister in the Dáil today).
Employers PRSI will no longer apply to share-based remuneration.
A cut in the lower rate of VAT to 9% on so-called ‘tourism-related’ goods and services. This will apply from 1 July 2011 until the end of 2013. The VAT cut will apply to
- restaurant and catering services
- hotel and holiday accommodation,
- theatre, cinema, museum, fairground and other entertainment tickets
- newspapers and magazines.
Air Travel Tax
The Air Travel Tax of €3 per passenger is to be abolished, but not with immediate effect. Its abolition is to be conditional on the major Irish airlines opening new tourist routes into Ireland.
R&D Tax Credit
The Minister intends to introduce a technical change to the Research & Development tax credit legislation, in order to allow companies more flexibility in how they account for the credit. This is intended to make the credit more attractive for qualifying companies.
Unsurprisingly, the Minister confirmed that ‘our 12.5% rate of corporation tax is here to stay’
The Department of Finance have just published full details of the Jobs Initiative on their website.