Budget 2019

9 October 2018

Last Updated: 9 October 2018

Please note that implementation dates for announced changes have been indicated below where available. Not all changes take immediate effect.

Personal Taxation (from 1st January 2019)
• Home carer tax credit increased from €1,200 to €1,500
• PRSI higher rate threshold increased from €376 to €386 per week
• REMINDER: The government had previously announced an increase in the minimum wage to €9.80 per hour from January 2019

Business Taxation & Regulation
• Earned income tax credit increased from €1,150 to €1,350
• Residential property loan interest deduction for landlords increased to 100% from 1st January 2019
• Corporation tax start-up relief (3 year tax exemption for new ventures) extended until the end of 2021
• Employer’s PRSI rate increase 0.1% in 2019, and expected to increase again in 2020 by 0.1%

Relevant Contracts Tax and Construction Industry
• No changes noted

Indirect Taxes
• VAT on tourism activities & hairdressing increased from 9% to 13.5% from 1st January 2019. Newspapers and sports facilities will retain the 9% rate.

• VAT on e-books and electronically supplied newspapers reduced from 23% to 9% from 1st January 2019.

Stamp duty
• Extension of Young Trained Farmers stamp duty relief extended until 31st December 2021

Carbon Tax
• No changes

Capital Taxes
• Increase in the Group A Threshold from €310,000 to €320,000 for gifts/inheritances received on or after 10th October 2018.

(Local) Property Tax (LPT)
• Review Group’s report will be published in due course. Any future changes in LPT will be moderate and affordable.

Miscellaneous Provisions & Announcements
• Excise duty on cigarettes increased by 50c from 9th October 2018
• Betting duty increased from 1% to 2%
• Extension of 0% BIK rate for electric vehicles for 3 years, and extension of VRT relief on hybrid vehicles until the end of 2019
• €5 increase in all social welfare weekly payments from next March, and full Christmas bonus this year
• 50c reduction in prescription charges for all medical card holders over the age of 70
• DPS Scheme threshold decreased from €134 to €124
Summary Statistics

		Budget 2019	Budget 2018
Capital Gains Tax Rate		33%	33%

Capital Acquisitions Tax Rate		33%	33%
Income Tax Rates
	Lower	20%	20%
	Higher	40%	40%
DIRT Tax
		39% (39% – where payments made less frequently than annually)	39% (39% – where payments made less frequently than annually)
Tax Credits
	Single Person	€1.650	€1,650
	Married Couple	€3,300	€3,300
	PAYE Credit	€1,650	€1,650
	Earned Income Tax Credit	€1,350	€1,150
Rate Bands
	Single/widowed	€35,300	€34,550
	Single/widowed with dependent children	€39,300	€38,550
	Married -one income earner	€44,300	€43,550
	Married – two income earners	€70,600	€69,100
PRSI
	Contribution Ceiling	No limit	No limit
Universal Social Charge
	< €13,000	Exempt	Exempt
	€ 0 – €12,012	0.5%	0.5%
	€12,013 – €19,874	2.0%
	€12,013 – €19,372		2.0%
	€19,874 – €70,044	4.50%
	€19,373 – €70,044		4.75%
	€70,044 – €100,000	8%	8%
	Self employed income > €100,000	11%	11%
	PAYE income in excess of €100,000	8%	8%
	Age >70/medical card holders with income < €60,000 – Max rate	2.0%	2.5%

Whilst every care has been taken in the production of this budget summary, neither Royal Canal Financial Control Services nor Ronan Duffy and Co. can be held responsible for any action taken or deferred, resulting from any errors contained therein. For a more comprehensive summary please refer to the government press release.