Ireland Presents New 2012 Budget Measures
The Budget for 2012 was presented to the Parliament by the Minister for Finance on 6 December 2011. As expected there will be no change in the attractive 12.5% corporation tax rate. Mortgage interest relief continues to be available for house purchasers who purchase property before the end of 2012 but will no longer be available after 2012 and will be fully abolished by 2018. The standard rate of VAT is being increased to 23% (from 21%) from 1 January 2012. The Minister confirmed that there will be no further increase in the standard rate of VAT for the duration of this Government. Capital Gain Tax and Capital Acquisitions Tax rate shall increase to 30% and the Class A threshold will reduce to EUR 250’000. Household tax of EUR 100 per annum will be introduced and payable on 31 March. Deposit Interest Retention Tax (DIRT) will be raised by 3% to 30%. Stamp duty for non-residential property transfers will be reduced to a flat rate of 2% (from the current top rate of 6%) in respect of instruments executed from 7 December 2011. Stamp duty on residential properties will remain unchanged at 1% up to EUR 1 million and 2% thereafter.
Article taken from Capital Consulting's newsletter, Taxing Issues