Finance (No.2) Bill 2023 sets out the legislative changes required to implement tax measures recently announced on Budget Day.
The budget tax proposals include:
- Increasing the income tax standard rate cut-off by €2,000 for all workers, increase in PAYE tax credits and the reduction in the USC.
- Introduction of the new landlord tax relief to help to retain rental properties in the market and increase in the Rent Tax credit.
- Extension of Accelerated Capital Allowances for energy efficient equipment to 2025.
- Equalising EIIS investor relief from €250,000 to €500,000 for all investments.
- Increase in the VAT registration thresholds for SMEs to €40,000 for services and €80,000 for goods.
- Reduced Capital Gains Tax rate of 16% for Angel Investors in innovative SMEs on gains of up to €3m.
- Increasing the R&D tax credit from 25% to 30%, as well as increasing the first year upfront payment from €25,000 to €50,000.
- Extension of the VRT relief for battery electric vehicles to 2025 and the extension of BIK reliefs for battery electric vehicles to 2027.
- The commencement of a range of amendments to the Key Employee Engagement Programme (KEEP) for the attraction and retention of staff.
Increased Cost of Business (ICOB) Grant provides
- Funding of €250m to provide a targeted refund to businesses who are rate payers.
- The rates grant will be paid through local authorities and benefit up to 130,000 small businesses.