Key items from the Budget announced on Wednesday 9 December 2009.
The standard rate of VAT is being reduced from 21.5% to 21% with effect from 1st January 2010.
Carbon tax to be introduced at the rate of €15 per tonne. Petrol and diesel costs will rise from 10th December; increases to gas and home heating oil will take place from next May. The application of the tax to coal and commercial peat will be subject to a Commencement Order.
The existing capital allowances scheme for energy efficient equipment for companies will be extended to include additional categories of new eligible equipment including refrigeration, cooling systems, electro-mechanical systems and catering and hospitality equipment.
A reduction of excise duty is being introduced on alcohol products of 12c per pint of beer/cider, 14c per half glass of spirits and 60c per standard bottle of wine
€36 million is to be allocated to an Employers Job Incentive Scheme which will provide PRSI exemption to encourage employers to recruit employees.
Three year exemption from tax on the income and gains of new start-up companies will include companies who commence to trade in 2010.
Effective tax rate for high earners availing of reliefs to increase to 30% (plus PRSI and levies) for the tax year 2010.
Non-resident Irish nationals or Irish domiciled individuals with worldwide income in excess of €1m and Irish located capital in excess of €5m will be subject to an Irish domicile levy of €200,000 per annum.
Scrappage Scheme (1st Jan - 31st Dec 2010).VRT relief of up to €1,500 will be provided where a car of 10 years or older is scrapped and replaced with a new car with low carbon emissions ie Band A or B.
A credit review system is to be established for the SME sector offering an independent review of refusals for bank credit by banks participating in NAMA.
Introduction of a 50c charge for all medical card prescriptions from April 2010.
Mortgage interest relief extended for those affected by negative equity; relief to be abolished from 2017.
Reductions are to be introduced in the monthly rates of child benefit at the higher and lower level by €16, bringing them to €150 and €187 respectively.
Introduction of a property tax and water charges to occur in future after land valuation review.
Possible further enhancement of the R&D tax credit regime and Intellectual Property regime in the Finance Bill.
Unified social contribution scheme to replace PRSI, the Health Levy, and Income Levy in 2011.
Reduction in salaries for the public sector ranging from 5% to 15%.
Introduction of new single pension scheme for all new entrants to the public service
VRT relief on electric and hybrid cars extended to the end of 2012.
Corporate Tax Rate to be maintained at 12.5%
Capital Gains Tax and Capital Acquisition Tax remain at 25%
No Changes to standard tax rates or tax credits in respect of Income Tax.