Budget 2010
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Budget 2010 Garvey & Co Chartered Accountants
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Budget 2010. Garvey & Co Chartered Accountants. Speech. Taxes – “we have reached the limit” “Regain our competitive edge” European Commission deadline extended to 2014. Summary. million Public pay1,000 Social welfare 760 Spending programmes 980 Capital 960 - PowerPoint PPT Presentation
Transcript of Budget 2010
Budget 2010
Garvey & Co
Chartered Accountants
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Speech
• Taxes – “we have reached the limit”• “Regain our competitive edge”• European Commission deadline extended to 2014
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Summary
million• Public pay 1,000• Social welfare 760• Spending programmes 980• Capital 960
Others 300
TOTAL 4,000
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Public Pay - Basic
• First €30,000 5%• Next €40,000 7.5%• Next €55,000 10%
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Public Pay - Higher
• €125,000 - €165,000 8%• €165,000 - €200,000 12%• Over €200,000 15%
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Public Pay - Pensions
• New single pension scheme for new entrants• Career average earnings• Retirement age up to 66• Linked to increases in state pension age• Considering linking to CPI rather than pay parity
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Social Welfare
• General decreases of 4.1%• Job seekers for younger hit harder
– 20-21 year olds €100– 22-24 year olds €150
• Old age pensions exempt• Child benefit €16 per month except social welfare
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Other
• Review of local government• National solidarity bond• €136 million for training• €70 million for flood relief• Credit review system• €22 million for visitor attractions• Discounted rail travel and JFK project
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Income Tax
• No changes to bands or credits• New system for 2011 – universal social
contribution• Taxation of pension lumps sums and
contributions to be reviewed• Extension of mortgage interest relief• High earner effective rate• Irish domicile levy
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Mortgage Interest Relief
• Abolished by 2017• Loans before 1 July 2011 get relief for 7 years• Transitional measures for loans between 1 July
2011 and end of 2013
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High Earners
• Effective rate increased from 20% to 30%• Full restriction at €400,000 (currently €500,000)• Some restriction from €125,000 (currently
€250,000)• Possible curtailment and removal of further reliefs
in Finance Bill
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Irish Domicile Levy
• Irish non-resident nationals and domiciled individuals
• Worldwide income exceeding €1 million• Irish located capital exceeding €5 million• Levy of €200,000
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Corporation Tax
• 12.5% rate is permanent• Current start up scheme extended for 2010• R&D and IP Regimes to be enhanced• Capital Allowances for energy efficient equipment
to be extended to new categories
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VAT
• Standard rate back to 21% from 1 January• Special schemes for second hand cars and
agricultural machinery abolished (moved to margin scheme)
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VRT
• New scrappage scheme– €1,500 relief– Over 10 years replaced by Band A or B– 1 January to 31 December 2010
• Existing schemes extended– Exemption for electric vehicles– €2,500 for certain hybrid vehicles– Extended to 31 December 2012
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PRSI
• No change to rates or bands• €36 million for Employers Job Incentive Scheme
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Carbon Tax
• Net tax (maintain or reduce payroll taxes)• 50% for retrofitting, also rural transport• Visibility?• €15 per tonne• Phased
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Excise Duty
• 12 cent per pint• 14 cent per spirit measure• €2.76 per bottle of spirits• 60 cent per bottle of wine• Other pro-rata• Including VAT
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Capital Taxes
• CAT• CGT• Stamp duty• NO CHANGES
• But – NAMA windfall tax of 80%
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Future Taxes
• Property Tax• Domestic Water Charges
To fund local government
• Review of pension treatment• Review of tax shelters
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Employment Subsidy Scheme
• Open to all sectors• Competitive and oversubscribed• Closing 23 December 2009• Similar conditions to phase 1
– 10 or more employees– Maintain employment– No financial difficulty at 1 July 2008– Viability plan to December 2010 and beyond
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Stimulus
• Car scrappage• Excise and VAT reductions• Retrofitting• Training• PRSI exemption• Credit review system• Financial services sector – International Funds
