Minister for Finance Paschal Donohoe’s tax revenue and expenditure plans to protect Ireland’s future are outlined in detail in Finance Bill 2018. Here, our tax experts look at the real-world implications for you and your business.
Finance Bill 2018 sets out the proposed legislative changes required to implement many of the Budget Day announcements of 11 October last. It provides for the introduction of two internationally agreed measures – the CFC regime which applies for accounting periods beginning on or after 1 January 2019 and the new 12.5% Exit Tax which applies from Budget night.
The existing provisions governing tax relief from income tax for investment in corporate trades (i.e. EII Relief and SURE relief) have been simplified and consolidated whilst the Bill also sees the introduction of a new relief, Start-up Capital Incentive (SCI), which is aimed at allowing tax relief to certain persons who invest in early stage start-up ventures.
The proposal to reinstate full interest deductibility for landlords from 1 January 2019 is provided for and the Bill also proposes a 28-day minimum rental period for those seeking to avail of “rent-a-room” relief. In line with prior years, the Bill contains a number of targeted anti-avoidance provisions. Other housekeeping measures include proposed amendments to the provisions governing the tax appeals procedure which are designed to improve the appeals process.
Director, PwC Ireland (Republic of)
Tel: +353 1 792 6692