1 / 23

Budget 2010

Budget 2010. Garvey & Co Chartered Accountants. Speech. Taxes – “we have reached the limit” “Regain our competitive edge” European Commission deadline extended to 2014. Summary. million Public pay 1,000 Social welfare 760 Spending programmes 980 Capital 960

filia
Download Presentation

Budget 2010

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Budget 2010 Garvey & Co Chartered Accountants

  2. Speech • Taxes – “we have reached the limit” • “Regain our competitive edge” • European Commission deadline extended to 2014

  3. Summary million • Public pay 1,000 • Social welfare 760 • Spending programmes 980 • Capital 960 Others 300 TOTAL 4,000

  4. Public Pay - Basic • First €30,000 5% • Next €40,000 7.5% • Next €55,000 10%

  5. Public Pay - Higher • €125,000 - €165,000 8% • €165,000 - €200,000 12% • Over €200,000 15%

  6. 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

  7. 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

  8. 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

  9. 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

  10. 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

  11. 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

  12. 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

  13. 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

  14. VAT • Standard rate back to 21% from 1 January • Special schemes for second hand cars and agricultural machinery abolished (moved to margin scheme)

  15. 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

  16. PRSI • No change to rates or bands • €36 million for Employers Job Incentive Scheme

  17. Carbon Tax • Net tax (maintain or reduce payroll taxes) • 50% for retrofitting, also rural transport • Visibility? • €15 per tonne • Phased

  18. 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

  19. Capital Taxes • CAT • CGT • Stamp duty • NO CHANGES • But – NAMA windfall tax of 80%

  20. Future Taxes • Property Tax • Domestic Water Charges To fund local government • Review of pension treatment • Review of tax shelters

  21. 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

  22. Stimulus • Car scrappage • Excise and VAT reductions • Retrofitting • Training • PRSI exemption • Credit review system • Financial services sector – International Funds

  23. Questions and Answers • Contact: • info@ncg.ie • 065 6864503

More Related