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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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