CORPORATION TAX:IRELAND'S corporation tax rate will be maintained at 12.5 per cent, as it is part of the State's "international brand", the Government said yesterday.
The importance of maintaining low corporation tax rates was emphasised in yesterday’s document, and were described as a “cornerstone” of the State’s industrial policy since the 1950s.
The plan also stressed that the Government’s commitment to a 12.5 per cent rate was protected in an EU context by the principle of unanimity in taxation matters.
Although taxation has a role to play in restoring balance to Ireland’s public finances, this will not apply to corporation tax, it said. The corporate sector’s contribution will be made through the maintenance and creation of high-value employment.
Reliefs and exemptions from capital taxes and stamp duties are to be abolished or greatly restricted under the four-year plan.
Furthermore, the current single capital gains tax (CGT) rate of 25 per cent will be replaced by a tiered system, with different rates applying to different levels of gain.
The tax-free thresholds that apply to capital acquisitions tax (CAT) transactions will be reduced to reflect the fall in asset values in recent years.