Budget 2022 highlights

We are pleased to bring you our summary of the tax measures set out in Budget 2022.

12/10/2021
Unlike previous budgets during the Celtic Tiger era where large tax reductions and incentives were the norm, the Government has focused on expenditure measures which hopefully will broaden the growth for businesses and other sectors post COVID-19.

With the Government’s agreed 2:1 ratio between expenditure and tax reductions, personal tax changes were limited to personal tax increases and an enhancement of working from home incentives.

The confirmation that the employment wages subsidy scheme will be extended to the end of April 2022 and the new business incentives will be welcomed by SMEs.

Should you have any taxation or business questions, our experienced team will be happy to share their insights with you.

Summary of measures:

Personal Tax
  • Standard rate band increased
  • No changes to USC rates – small increase in some bands
  • Income tax rates remain the same
  • Increase of €50 in the personal tax and employee/earned income credits
  • Income tax relief of 30% on certain expenses for remote workers
  • Extension of Help to Buy Property Scheme to 31 December 2022
Business Tax
  • 12.5% corporation tax rate remains for the majority of Irish companies
  • Employee Wage Subsidy Scheme extended to end of April 2022
  • New tax credit of 32% for the digital gaming sector
  • Extension and expansion of the Employment Investment Incentive Scheme
  • Extension and expansion of accelerated capital allowances for energy-efficient equipment to 31 December 2024
  • Employer’s PRSI income threshold increased
  • Introduction of anti-avoidance legislation for multinationals
Other Taxes
  • Excise duty to increase by 50c on a packet of 20 cigarettes with a pro rata increase on other tobacco products
  • Farmers’ flat rate addition to decrease 5.6% to 5.5% from 1 January 2022
  • The bank levy is extended to the end of 2022
Crowe Ireland Budget 2022 Newsletter cover
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Contact us:

Grayson Buckley, Partner, Tax - Crowe Ireland
Grayson Buckley
Partner, Tax
John Byrne, Partner, Tax - Crowe Ireland
John Byrne
Partner, Tax
Cormac Doyle Crowe Ireland Tax Partner
Cormac Doyle
Partner, Tax
Lisa Kinsella, Partner, Tax - Crowe Ireland
Lisa Kinsella
Partner, Tax