Budget 2010 Summary

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As widely anticipated, the Budget focused mainly on cutting expenditure, but also included various taxation measures. The small business owner was saved from higher taxes but really there was no assistance or incentives given.

  • No changes to income tax rates, income levy, or PRSI for 2010.
  • Universal social contribution scheme to replace PRSI, the health levy, and income levy to be introduced in 2011
  • No change to income tax bands, allowances or credits
  • Increase in effective tax rate for high earners to 30% (plus PRSI and levies) for 2010
  • Non-resident Irish nationals or Irish domiciled individuals with worldwide income in excess of €1m and Irish located capital in excess of €5m will be subject to an Irish domicile levy of €200k per annum
  • Introduction of a carbon tax at the rate of €15 per tonne
  • Reduction in rates of excise duty on beer and cider, wine and spirits. No change to rates of duty on tobacco products.
  • Introduction of car scrappage scheme for cars of ten years and older
  • Decrease in standard VAT rate from 21.5% to 21%
  • Further enhancements to the R&D tax credit regime and Intellectual Property regime may be included in the Finance Bill
  • Measures to bolster Ireland’s competitiveness as a centre for international financial services to be introduced in the Finance Bill
  • Reiteration of commitment to 12.5% corporation tax rate

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