8 October 2019
Last Updated: 8 October 2019
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 2020)
• REMINDER: The proposal to increase the minimum wage to €10.10 per hour from January 2020 is only being brought to Cabinet this week, and does not form part of the Budget day announcement.
•Dividend Withholding Tax (DWT) to increase from 20% to 25% from 1st January 2020. DWT is considered a payment on account with Revenue, where the 25% tax rate is now a more accurate average amount due when USC etc. is considered.
• €1.2 billion package announced to respond to Brexit. Key areas: Agriculture, Enterprise, Tourism, Social Protection.
• Rainy Day Fund of €1.5bn created due to likelihood of a no deal Brexit.
• Non-residential property stamp duty rate increased from 6% to 7.5%. Transitional arrangements where the instruments are executed before 1 January 2020 where a binding contract existed prior to 8th October 2019.
•Monthly threshold for the Drugs Payment Scheme reduced by €10 per month.
• Medical card income threshold increased.
• Free GP care for children under eight, and free dental care for children under six.
• Additional €80m for the Housing Assistance Payment scheme.
• 100% Christmas Bonus in 2019.
• Limited increases in weekly social welfare payments: One Parent Family Payment + €15, Qualified Child Payment +€3 for children over 12, and +€2 for children under 12.
|Budget 2020||Budget 2019|
|Capital Gains Tax Rate||33%||33%|
|Capital Acquisitions Tax Rate||33%||33%|
|Income Tax Rates|
|39% (39% – where payments made less frequently than annually)||39% (39% – where payments made less frequently than annually)|
|Home Carer Credit||€1,600||€1,500|
|Earned Income Tax Credit||€1,500||€1,350|
|Single/widowed with dependent children||€39,300||€39,300|
|Married -one income earner||€44,300||€44,300|
|Married – two income earners||€70,600||€70,600|
|Contribution Ceiling||No limit||No limit|
|Universal Social Charge|
|€ 0 – €12,012||0.5%||0.5%|
|€12,013 – €19,874||2.0%||2.0%|
|€19,874 – €70,044||4.50%||4.50%|
|€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%||2.0%|
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.