Ireland’s Finance Minister Michael Noonan introduced a 10-points tax reform plan for small and medium-sized businesses (SMEs) in his Budget 2013 address to the Dáil in Dublin today.
Noonan said he is aware that the operating environment in the domestic economy remains difficult, particularly for SMEs.
“These measures will make a real difference to SMEs by assisting their cash position and supporting their creation of jobs. I am also publishing a public consultation paper on a micro business tax today,” Noonan said.
The 10-points tax reform plan for SMEs includes:
- Reforming the 3 Year Corporation Tax Relief for Start Up Companies to allow unused credits to be carried forward. This will help SMEs and start-ups navigate their early years.
- Increasing the cash receipts basis threshold for VAT from €1m to €1.25m and amending the Close Company Surcharge de minimis level. Both of these measures will improve cash flow.
- Amending the R&D tax credit by doubling the initial spend eligible for the credit from €100,000 to €200,000 to encourage innovation and business expansion.
- Extending the Foreign Earnings Deduction for work-related travel to certain countries beyond the BRICS, which will support exports.
In order to boost the competitiveness of the haulage industry, Noonan also said he would introduce a rebate on diesel from 2 July 2013.
”This policy will be strictly policed so as to ensure that the beneficiaries are fully tax compliant,” he added.