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An Employers Guide to Budget 2021

In an unprecedented Budget Minister for Finance Paschal Donohoe has announced a total budgetary package amounting to €17.75 billion. But what does it mean for Irish employers? Below is a list of the Taxation & Support measures applicable to Irish businesses

  • The Government re-affirmed their commitment to Ireland’s 12.5% corporation tax rate.
  • Further updates to Ireland’s Corporation Tax Roadmap will be published at a later date.
  • All intangible assets acquired after 13 October 2020 to be brought fully within the tax depreciation balancing charge rules.
  • Exit Tax rules to be amended to clarify the operation of interest on instalment payments.
  • Extension of the Knowledge Development Box relief available in respect of certain IP development activities until December 2022
  • Companies qualifying for Knowledge Development Box relief may be entitled to a deduction equal to 50% of its qualifying profits. This relief is to be extended for a further two years until the end of December 2022.
  • The accelerated capital allowances scheme for energy efficient equipment is being extended for a further 3 years
  • The additional 5% of qualifying expenditure allowed as an increased film corporation tax credit for certain qualifying films to be extended by one year to December 2021.
  • Announcement of a COVID Restrictions Support Scheme which will provide weekly payments to qualifying businesses of up to €5,000 in the form of an advanced credit for tax deductible trading expenses.
  • A modified Dividend Withholding Tax scheme will be introduced from 1 January 2021

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