Budget 2020 has several implications for employers and in this article, we take you through the key measures for introduction in 2019/2020.
- Measures to support Enterprise/SMEs:
An increase in the Earned Income Credit from €1,350 to €1,500
The annual investment limit for the Employment and Investment Incentive will be increased to €250,000.
An annual investment limit of €500,000 will be introduced for investors who are prepared to invest in the EII for ten years or more.
Research and Development tax credit would be increased from 25% to 30% for micro and small companies.
Special Assignee Relief Programme and the Foreign Earnings Deduction extended until the end of 2022.
A Brexit package of €1.2 billion was been announced. In the event of a 'no-deal' the following measures will be deployed:
€220 million will be deployed immediately.
€650 million for agriculture, enterprise and tourism sectors to assist the regions and populations most affected.
€85 million for beef farmers and €6 million for other livestock farmers and the mushroom sectors.
€14 million for the fishing industry
€365 million for extra social protection expenditure benefit
€45million to assist people to transition to new work.
The carbon tax has been increased by €6 to €26 per tonne and applied from midnight 9 October on auto fuels.
Other carbon tax changes to other fuels will come into effect in May 2020.
The 1 per cent diesel surcharge introduced last year will be replaced with a nitrogen oxide (NOx) emissions-based charge on a €/mg/km basis. The rate will increase in line with the level of nitrogen oxide emitted. It will apply to all passenger cars registering for the first time in the State from January 1st.
VRT relief for hybrid vehicles and benefit-in-kind zero rate on electric vehicles extended to 2020.
€8 million allocated to maintain grants for those buying electric cars.
Commercial stamp duty increases by 1.5 per cent to 7 per cent from midnight tonight.
View here to see the SFA's response to Budget 2020. Additional information can be found at Budget 2020.
If you have any questions on Budget 2020 please contact Elizabeth Bowen, SFA Senior Executive.