budget 2010 garvey & co chartered accountants. speech taxes – “we have reached the limit”...
TRANSCRIPT
Budget 2010
Garvey & Co
Chartered Accountants
test
Speech
• Taxes – “we have reached the limit”• “Regain our competitive edge”• European Commission deadline extended to 2014
test
Summary
million• Public pay 1,000• Social welfare 760• Spending programmes 980• Capital 960
Others 300
TOTAL 4,000
test
Public Pay - Basic
• First €30,000 5%• Next €40,000 7.5%• Next €55,000 10%
test
Public Pay - Higher
• €125,000 - €165,000 8%• €165,000 - €200,000 12%• Over €200,000 15%
test
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
test
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
test
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
test
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
test
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
test
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
test
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
test
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
test
VAT
• Standard rate back to 21% from 1 January• Special schemes for second hand cars and
agricultural machinery abolished (moved to margin scheme)
test
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
test
PRSI
• No change to rates or bands• €36 million for Employers Job Incentive Scheme
test
Carbon Tax
• Net tax (maintain or reduce payroll taxes)• 50% for retrofitting, also rural transport• Visibility?• €15 per tonne• Phased
test
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
test
Capital Taxes
• CAT• CGT• Stamp duty• NO CHANGES
• But – NAMA windfall tax of 80%
test
Future Taxes
• Property Tax• Domestic Water Charges
To fund local government
• Review of pension treatment• Review of tax shelters
test
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
test
Stimulus
• Car scrappage• Excise and VAT reductions• Retrofitting• Training• PRSI exemption• Credit review system• Financial services sector – International Funds
