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Ireland Tax News 2012

Ireland Switzerland Revised Double Tax Treaty

February 2012
Ireland and Switzerland signed on January 26, 2012 a new protocol amending the existing 1966 tax treaty and the 1980 protocol between the two countries. The new protocol which includes exchange of information provisions in line with the OECD model also includes reduced tax withholding rates for certain dividend income.
The new treaty has to be approved by both parliaments.

Ireland New Reduced 9% V.A.T. Rate

June 2011
Ireland's minister of finance announced that a new reduced 9% V.A.T. rate will be introduced from 1.7.2011 to 31.12.2013.
The reduced rate will apply, inter- alia, to restaurant and catering services, hotel accommodation, admission to cinemas, theatres and certain musical performances, museums and art galleries admission, amusement parks, hairdressing services and printed matters such as maps and leaflets.
The measure will be provided for in the forthcoming finance bill 2, 2011.
Source: www.revenue.ie

Ireland Singapore Double Tax Treaty

April 2011
The previously signed double tax treaty, DTA, between Ireland and Singapore entered into force on April 8 and is effective retroactively from January 1, 2011.
The DTA includes , inter-alia, tax exemption in the source country from profits from international operations of ships and aircrafts and lower withholding rates for dividend interest and royalties.
Source www.iras.gov.sg

Ireland Taxpayers Email Scam

November 2010
The Irish revenue published on November 3, 2010 a warning regarding scam emails received by certain taxpayers.
The scam email which is headed "You are eligible to receive a tax refund" is sent to taxpayers asking them to supply personal information, including credit card details, in order to receive a tax refund.
According to the warning the revenue never sends emails requiring taxpayers to send personal details via email or pop-up windows.

Ireland's Credit Rating Downgraded

July 2010
Moody's credit rating agency downgraded on July 19, 2010 Ireland's credit rating by one step, from the previous Aa1 to Aa2.
The downgrade follows concern about loss of financial strength and weak growth prospects.
Moody's press release points that the Irish rating outlook is stable.

Ireland Tax Rates 2010

April 2010
There are no changes in the 2010 income tax rates compared to 2009.
The Irish corporate income tax rate for 2010 is 12.5%.
The personal income tax rates are 20% and 41%.
From 1.1.2010 the standard V.A.T. rate decreased to 21%, compared to 21.5% in 2009.
There are also reduced V.A.T rates of 4.8%, 5.2% and 13.5%.

Ireland's Budget 2009

October 2008
Ireland's finance minister presented on October 14 the Irish budget for 2009. The new tax measures are expected to donate additonal EUR 2 billion revenue, effecting both, direct and indirect taxes.
From 1.1.2009 a new income tax levy for individuals will be imposed at a rate of 1% for income up to EUR 100,000 and 2% in excess of EUR 100,000.
The standard tax band will be increased. e.g. for single tax payers from the current EUR 35,400 to EUR 36,400.
The tax relief on mortgage interest for first time buyers will be 25% for each of the first 2 years, 22.5% for years 3-5 and at the standard rate of income for years 6-7.
For non first time buyers the tax relief will be reduced from the current 20% to 15%.
Captal gain tax will be increased from 20% to 22% for sales from October 15, 2008 onwards.
The R&D tax credit will increase from 20% to 25%.
From 1.1.2009 the PRSI ceiling will increase to EUR 52,000.
The standard V.A.T rate will increase from the current 21% rate to 21.5% , effective from 1.12.2008 . There will be no change in the reduced 13.5% rate.

Ireland VAT Rules for Construction Services

June 2008
New VAT Rules for Construction Services.
The Irish Revenue Commission announced on 27 May, 2008 new VAT rules for construction services provided by sub-contractors to principal contractors.
The new VAT rules are effective from 1.9.2008
According to the new rules the charges made by a sub-contractor to a principal contractor would not include VAT, instead, the VAT would be calculated by the principal contractor who would account for the VAT directly to the revenue commissioners. The overall net VAT would remain unchanged.
The sub-contractor would issue an invoice to the principal, excluding the VAT rate and VAT amount. The invoice would state "VAT on this supply to be accounted for by the principal contractor". If agreed by both sides, the principal may issue the invoice.
The rules relate only to services within the construction industry, excluding providing haulage for hire.
More detailed info can be found in the Irish Revenue site.

Ireland Income Tax

January 2007
From 1.1.2007 the new top personal income tax rate in Ireland is 41%, compared to 42% in 2006.
There are also some changes regarding Irish personal tax credits, including age credit.
Ireland's 2007 corporate tax rate is the same as in 2006.

Ireland Income Tax

May 2006
From 1.1.2006 Irish employees or employers contributing to foreign pension schemes get a tax exemption, subject to cetain terms in the Irish law.

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