Budget 2020

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.

Brexit
• €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.

Business Taxation & Regulation
• Earned income tax credit increased by €150

Relevant Contracts Tax and Construction Industry
• No changes noted

Indirect Taxes
• No changes noted

Stamp duty
• 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.

Carbon Tax
• Increase in rate by €6 to €26 per tonne. Household fuels will not be affected until next May.

Capital Taxes
• Increase in the Group A inheritance tax threshold from €320,000 to €325,000

(Local) Property Tax (LPT)
• No changes noted

Miscellaneous Provisions & Announcements
• Excise duty on cigarettes increased by 50c on a pack of 20 cigarettes with a pro-rate increase on other tobacco products

•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.

Summary Statistics

		Budget 2020	Budget 2019
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
	Home Carer Credit	€1,600	€1,500
	Earned Income Tax Credit	€1,500	€1,350
Rate Bands
	Single/widowed	€35,300	€35,300
	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
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%	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.