Tax Highlights from Summer Economics Statement 2017

Summer Economics Statement 2017 - Crowe Horwath Ireland

The Government recently released its Summer Economic Statement setting out the importance of a growth-friendly taxation system. The Statement confirms that there is €0.22bn available for new taxation measures in Budget 2018. The forthcoming Taxation Strategy Group Papers will set out the potential options for revenue increases and reductions. The Government has proposed a number of measures which can be highlighted as follows:

Share-based remuneration

Development of a share-based remuneration incentive which will be focused on Small and Medium Enterprises (SMEs). Currently up to 55% income tax is due to be paid one month after an employee exercises a share option, but it is hoped the new scheme will postpone this tax charge to a later date (i.e. when sold).

12.5% Corporation Tax

The low rate of Corporation Tax of 12.5% continues to be a core part of Ireland’s corporate tax policy and the Government is determined to maintain Ireland’s attractiveness for foreign direct investment through this competitive offering. The R&D tax credit and recently introduced Knowledge Development Box further enhance Ireland’s attractiveness.

Reduction USC rates

A main priority of the Government is a fair tax system with particular focus on reductions in income tax for lower and middle income earners. The USC rates have been reduced gradually over the past number of years and further reductions are anticipated in the upcoming Budget.

For any additional information or help with any tax-related issues contact a member of our tax team.