Padraig Cronin, Head of Tax & Legal Services, Deloitte provides comment following Budget 2015.
Open for business
The published roadmap for Ireland’s tax competitiveness is most welcome. It has the appropriate balance between giving certainty to Multinationals and ensuring we continue to have a ‘Best in Class’ FDI offering as we evolve our system in a changing world. The Minister is to be congratulated for having consulted widely and for giving clarity on the future.
The indigenous sector has also received welcome focus. In particular, the measures announced for the construction / property / farming sectors and the retention of the 9% VAT rate will have a positive impact. The broadening of the range of qualifying activities for the tax based funding scheme (EIIS) will trigger enhanced activity.
As regards personal and capital tax rates, the minister has partially responded to the needs of the ‘squeezed middle’. However, maintaining the top rate of tax on income at 55% and a Capital Gains Rate of 33% is disappointing. It would be advantageous for the Minister to address this tax wedge which acts as a significant disincentive for entrepreneurship.