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Capital Gains Tax change in rate of tax/Payment dates 3 Year Tax exemption for Start - up companies Corporation Tax. Preliminary Tax Payment dates for Large Companies Extended date to file Annual Form P35 electronically Stamp Duty. Commercial Property Income Levy. Implementation arrangements The standard rate of VAT was increased from 21% to 21.5% with effect from 1 December, 2008. This rate applies, for example, to supplies of motor vehicles, petrol, electrical supplies, furniture, carpets, adult footwear and clothing. Capital Gains Tax change in rate of tax/Payment dates The rate of capital gains tax is being increased to 22% from 20% in respect of disposals made from midnight on 14 October 2008. The payment date for tax in respect of disposals in the period January to November is being changed to mid-December and the tax on disposals in December will now be due on the following 31 October (the existing pay and file date). This applies to the year of assessment 2009 and subsequent years. 3 Year Tax exemption for Start - up companies New start-up companies which commence trading in 2009 will be exempt from corporation tax and capital gains tax in each of the first 3 years provided that their tax liability in the year does not exceed €40,000. This measure is being examined to ensure that it is in compliance with EU rules on State-Aid. Corporation Tax. Preliminary Tax Payment dates for Large Companies Companies with a corporation tax liability of more than €200,000 in their previous accounting period are obliged to pay preliminary corporation tax, amounting to 90% of the final liability for the current accounting period, one month before the end of the current accounting period (but not later than the 21st of the relevant months). The current single payment for such companies' preliminary corporation tax will now be due in two instalments. This will apply to accounting periods commencing on or after 14 October 2008. The first instalment will be payable in the 6th month of the accounting period (i.e. 21 June for a company with calendar year accounts) and the amount payable will be 50% of the corporation tax liability in the preceding accounting period or 45% of the corporation tax liability for the current accounting period. The second instalment will be payable (as at present) in the 11th month of the accounting period and the amount payable will bring a total preliminary tax paid to 90% of the corporation tax liability for the current accounting period. Extended date to file Annual Form P35 electronically The filing date for Annual Form P35 has been extended to 23rd of February for filing return and associated payment through ROS. Stamp Duty. Commercial Property The stamp duty applicable to non-residential property has been changed in respect of instruments executed on or after 15 October 2008. The top rate of duty is being reduced from 9% to 6% and the new rates are:
Income Levy. Implementation arrangements The income levy came into effect on 1 January 2009. The levy is a separate charge and there are no deductions or credits due against it. Its a levy payable on gross income before any relief (pension contributions). All individuals are liable to pay the income levy if their gross income exceeds the threshold of €18,304 p.a., or they exceed the income exemption limit of €20,000 p.a. for an individual over 65 years – or €40,000 p.a. for an over 65 married couple. Income bellow the above threshold limits exempt from Income Levy but once income is above the threshold limits all income is subject to income levy at appropriate rate.
As announced by the Minister for Finance in Budget 2009, the levy is a charge on employees for the use of car parking facilities provided by the employer in designated urban areas. A flat rate of €200 will apply per annum. The levy will apply to employer-provided parking facilities in the major urban centres of Cork, Dublin, Galway, Limerick and Waterford. The employer must deduct the levy from the employee through the payroll system and return the levy to Revenue. Deductions of the levy are spread throughout the year in line with the frequency of salary payments. ATT is an excise duty on air travel and it will be charged, levied and paid in respect of every departure of a passenger on an aircraft from an Irish airport on or after 30th March 2009. €2 will apply where the flight is to a destination located not more than 300 kilometres from Dublin Airport, 10 will apply to flights to any other destination. ATT will not apply in the case of an aircraft, which is not capable of carrying 20, or more passengers. From 1 January 2009, the provision of bicycles and associated safety equipment by employers to employees who agree to use the bicycles to travel to work will be treated as a tax-exempt benefit-in-kind. This tax exemption may only apply once in every 5-year period in respect of any one employee/director. There is a limit of €1,000 on the amount of expenditure an employer can incur in respect of any one employee/director. The scheme may also be implemented via salary sacrifice arrangements, whereby an employee agrees to forego part of her or her salary to cover the costs associated with the purchase of the bicycle and associated safety equipment. Where such salary sacrifice arrangements are implemented they must be completed over a maximum period of 12 months.
No 9, Level One, Liosban Business Park, Tuam Road, Galway. Tel: +353 91 782 830, Fax: +353 91 782 831
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