Irish gov't publishes finance bill

The Irish government on Thursday published a finance bill, which focuses on implementing the main tax changes in 2017.

The finance bill, which is in line with the recommended process of budgetary reforms, specifies new taxation methods for fund structures which hold real estate investments, saying that the funds must deduct a 20 percent withholding tax on profits made by non-resident investors.

The finance bill also includes new measures to implement the reductions in the Universal Social Charge (USC).

Early this month, the government said it would make further cuts to the three lowest rates of the USC of 0.5 percent.

The USC is a tax payable on gross income, including notional pay, after any relief for certain capital allowances, but before pension contributions.

The finance bill provides for the increases in the home carer tax credit and the earned income tax credit, as well as various measures to help housing supply, first time buyers and renters including the new Help to Buy Scheme.

It also includes a number of initial measures as a first response to reduce Brexit impact, by extending the Foreign Earnings Deduction and Special Assignee Relief schemes until 2020, reducing the capital gains tax rate for entrepreneurs relief to 10 percent, and introducing a fishers tax credit.

It also provides for the increase in the excise duty on cigarettes by 50 cents.

Certain anti-avoidance measures are also included and the finance bill provides for the tackling of off-shore tax evasion, updates procedures for dealing with tax defaulters. Endit