Budget 2017 was announced by the Minister for Finance, Mr Michael Noonan on October 11th. Cahill Taxation’s tax experts have analysed the details in Budget 2017 and following their Budget 2017 Breakfast Briefing in the Temple Gate on October 12th, now invite you to view their perspective on the Budget by reviewing their newsletter.
Cahill Taxation believe that while there is no doubt that, in recent years, Ireland is operating in significantly improved times economically, 2016 has been a somewhat tumultuous year on the economic front. The Budget is therefore cautious and conservative in content which is what was expected in the first Budget of the minority government operating within a limited fiscal space.
They state that the uncertainties presented by Brexit and the publication of the negative EU State Aid ruling on Apple’s tax structure in Ireland were no doubt to the forefront of the Minister’s thoughts when drafting the Budget.
The Budget in particular focussed on a number of key areas including:
As is the norm on Budget Day, the Minister used his speech to reiterate the long-term intention to maintain the 12.5% corporation tax rate. However, the Government has importantly signalled a review of our corporate tax system with an assessment of its impact on investment. Such a review is to be welcomed, particularly in times when our corporate tax regime is under much scrutiny internationally.
Apart from minor changes to USC and tax credits, no material changes were made to our personal tax rates. The entry level to the top rate of income tax in Ireland remains at a comparatively low €33,800 when compared with other OECD countries.
There is much work to be done in the area of personal taxes and this area should become a key priority of the Government in the years ahead to ensure that Ireland remains an attractive country to work and live in.
Thanks to Chaill Taxation for this informative and relevant insight into what Budget 2017 means for business.