News

Minister of Finance, Paschal Donohoe, delivered his 2nd budget today, 9th October.

Business Tax

• The Minister of Finance confirmed the government’s commitment to maintaining the current corporation tax rate of 12.5%.
• The weekly threshold for the higher rate of employer’s PRSI is increasing from €376 to €386.
• As previously announced, the PAYE rules are changing from 1 January 2019 to a real-time system which will require employers to, check the correct tax deductions for each employee before making payments and report employee payments in real-time.
• The government has committed to a review of transfer pricing rules.
• The Three Year Start Up relief scheme is to be extended until the end of 2021.
• New accelerated capital allowances have been introduced for gas-propelled commercial vehicles and refuelling equipment, to encourage the use of a more environmentally friendly fuel.
• New accelerated capital allowances have been introduced for employer-provided fitness and childcare facilities.
• A three-year extension for the Young Trained Farmer stamp duty relief, until the end of 2021, has been announced.
• Changes are being made to the Key Employee Engagement Programme (KEEP) to encourage use of the scheme. The changes include:
  • increasing the maximum annual market value of share options that may be granted to 100% of salary
  • replacing the three year limit with a lifetime limit
  • increasing the overall value of options that may be awarded per employee from €250,000 to €300,000.

Back to summary of Republic of Ireland Budget 2019

A PDF version of the full Summary of the Facts is available here.