Budget 2016: Insights & Analysis

The Irish Minister for Finance, Mr. Michael Noonan presented Budget 2016 earlier today. Please click on these links to download our Budget 2016: Insights and Analysis and our Tax Rates & Bands 2016.

ByrneWallace welcomes the overall Budget 2016 package which comes at a time when Ireland is successfully emerging from the “banking, fiscal and economic crisis” of recent years and also responding to major changes in global tax policy. It is against this background that the Irish Government presented its proposals today.

• As anticipated, the Irish Government has re-affirmed its commitment to the 12.5% corporation tax rate for trading activities.
• A package of incentives focusing on entrepreneurs has been introduced, including a capital gains tax rate of 20% on the disposal of certain business assets.
• There are welcome improvements in personal tax matters which see an effective reduction in income tax rates below the 50% marginal tax threshold for most earners. 
  
• One year after announcing the introduction of the Knowledge Development Box, we now have details of the proposed new corporation tax rate of 6.25% for qualifying knowledge development activities.
  
• A comprehensive roadmap for Ireland’s tax competitiveness has been announced to address compliance with the OECD’s detailed reports on Base Erosion and Profit Shifting (BEPs) and the EU Commission Action Plan on Corporate Taxation.

For the most part, Budget 2016 offers welcome improvements in personal taxation matters as well as new measures to help maintain and promote Ireland as a competitive jurisdiction in which to carry on business.

ByrneWallace can assist you and your business in navigating the changes proposed by Budget 2016. Please contact any member of our Tax Team or your usual ByrneWallace contact for more information and advice.