Finance Act 2018

The legislative provisions to enact Minister for Finance Paschal Donohoe’s tax revenue and expenditure plans to protect Ireland’s future are detailed in Finance Act 2018.

Our tax experts look at the real-world implications for you and your business.

Finance Act 2018 sets out the legislative changes required to implement many of the Budget Day announcements of 9 October last. The most significant measures are the introduction of the CFC regime which applies to accounting periods beginning on or after 1 January 2019 and the new 12.5% Exit Tax which became effective for transactions on or after 10 October 2018.

These headline measures are concrete evidence of the changed international tax landscape resulting from agreements reached at international level in recent years. As Ireland continues on the journey set out by it in the Corporation Tax Roadmap these agreed measures are likely to be a feature of Finance Acts for a number of years to come.

The existing provisions governing tax relief from income tax for investment in corporate trades have been simplified and consolidated whilst the Act 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.

In line with prior years, the Act contains a number of targeted anti-avoidance provisions. Other housekeeping measures include amendments to the provisions governing the tax appeal procedure.

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Director, PwC Ireland (Republic of)

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