10 Oct 23
Budget 2024 - Key points
The 2024 Budget was announced today, Tuesday 10 October, by Finance Minister Michael McGrath and Minister for Public Expenditure and Reform Paschal Donohoe.
With an election looming in 2024, the budget has been designed to put cash back in voters’ pockets and relieve the burden of increased costs to businesses.
Minister McGrath announced a total spending package of €14 billion including core spending and tax increases of €6.4 billion, once off measures of €2.7 billion and non-core expenditure of €4.75 billion.
In his speech to the Dáil, Minister McGrath said that Budget 2024 is being "framed against a backdrop of global uncertainty – both economic and geopolitical. The Minister also stated, "I believe we have struck the right balance between providing support for our economy and society while not unduly adding to inflation."
Key announcements for businesses operating in Ireland
Standard Rate Cut Off Point on income tax increased by €2,000 to €42,000.
The Personal, PAYE and earned income tax credits increased by €100 to €1,875.
4.5% rate of Universal Social Charge (USC) is cut to 4%, with an increase in the ceiling for the 2% USC rate by €2,840 to €25,760 on all salaries over €12,012.
The Minimum wage is increased by €1.40 per hour to a new level of €12.70 per hour.
Pay Related Social Insurance (PRSI) contribution rates will increase 0.1% from 1 October next year.
The 9% reduced VAT rate for gas and electricity will be extended for another 12 months.
Implementation of the Minimum Effective Tax rate for multinational groups with global turnover of at least €750 million, as provided for under the OECD Pillar Two agreement, increases to 15% from the standard 12.5% Corporation Tax rate.
Research and Development 25% tax relief is increased to 30%.
Tax relief for angel investors will allow these investors to benefit from a reduced rate of Capital Gains Tax (CGT) when they dispose of a qualifying investment. Qualifying investors can avail of an effective reduced rate of CGT of 16% or 18% if through a partnership, on a gain up to twice the value of their initial investment. There is a lifetime limit of €3 million on gains to which the reduced CGT rate will apply.
Proposed increase in the current project cap on qualifying expenditure in the Section 481 Film Tax Credit from €70 million to €125 million.
VAT registration thresholds for businesses to increase from €37,500 for services and €75,000 for goods to €40,000 for services and €80,000 for goods respectively.
Carbon tax increased from €48.50 per tonne to €56 per tonne.
The Key Employee Engagement Programme will be extended to the end of 2025 and expanded.
The Employment Investment Incentive Scheme relief that an investor can claim has doubled to €500,000.