Taxation News

Taxation News

Pre-Budget Submission – Supporting Ireland’s transition to a sustainable future
CCAB-I’s Pre-Budget submission sets out a range of proposals informed by members and the businesses with whom they work, to enhance the Irish economy, and set Ireland on its way to achieving climate targets at the same time. The submission proposes a number of key measures in the following areas:

  • Measures to support climate action
  • Measures to combat inflationary pressures
  • Measures to support SMEs and entrepreneurs
  • Measures to alleviate capacity issues in the residential property market
  • Measures to support international enterprise and foreign direct investment
  • Measures to enhance the tax system
Summer Economic Statement 2023
The Minister of Finance, Michael McGrath TD, and the Minister for Public Expenditure, NDP Delivery and Reform, Pascal Donohoe TD, published the Government’s Summer Economic Statement 2023 following agreement at Cabinet.

The document sets out the Government’s medium-term budgetary strategy and outlines the fiscal parameters within which discussions will take place ahead of Budget 2024.

Budget 2024 will provide for an overall package of €6.4 billion; this has been calibrated to balance the need to provide further support while avoiding adding to inflationary pressures.

  • Budget 2024 will deliver an overall package of €6.4 billion and will be presented to Dail Eireann on 10th October 2023.
  • Additional public spending will amount to €5.2 billion and taxation measures will amount to €1.1 billion.
  • Core spending will increase by 6.1% in 2024.
  • An Additional €2¼ billion over the period 2024-2026 to boots delivery of critical capital infrastructure projects and make a contribution to the existing Climate Action Fund.
  • Exchequer figures show that tax revenues to end-June were €40.9 billion.
  • This was 10.9 per cent higher than last year, reflecting the underlying strength of the economy, but also is heavily driven by volatile corporation tax receipts.
  • Total gross voted expenditure to end-June amounted to €41.9 billion, €3.4 billion or 8.7 per cent ahead of the same period in 2022; this reflects support for public services and growing population, and the ramping up of NDP investment.
  • An Exchequer surplus of €0.3 billion was recorded in the first half of the year.
  • On a 12-month rolling basis, the Exchequer recorded a surplus of €1.1 billion in June. However, excluding one-offs, an underlying deficit of €5½ billion was recorded on a 12-month rolling sum basis.
Research & Development (R&D) Corporation Tax Credit
The Tax and Duty Manual Part 29-02-03 – Research and Development (R&D) Corporation Tax Credit – has been updated to incorporate the changes to the R&D credit introduced by Finance Act 2022.

The Finance Act 2022 changes are reflected throughout the manual, with examples provided where appropriate. The manual is also updated:

  • To remove obsolete material; and
  • To include a new section 4.7 on costs associated with cloud computing
  • Key changes introduced to Part 29 by Finance Act 2022 include:
  • The introduction of sections 766C and 766D Taxes Consolidation Act 1997 (TCA 1997) providing for an R&D corporation tax credit
  • The ability to accelerate (under sections 766(4D) and 766A(4C) TCA 1997) the payment of the second instalment and the final instalment of an R&D tax credit which arose in an accounting period that commenced pre-1 January 2022

Where a company is making a claim for an accelerated payment of the second and final instalment, and/or a claim for an R&D corporation tax credit under section 766C or section 766D in an accounting period for which a Form CT1 for 2022 is due to be filed, the company is required to file and R&D specified return 2022 which forms part of the Form CT1 2022. The updated manual provides guidance on how a claim should be made.