|
Irish Jobs Initiative - 10th May 2011
To follow are the key points of the announcement from Government;
1. The lower rate of Employers Prsi is to be haved on a temporary basis from July 1st, 2011. This will result in a saving to the Employer of 4.25% on employees paid €356 per week or less.
2. The existing Employer Job (PRSI) Incentive Scheme is also being retained until the end of 2011. This provides for a 12 month employer PRSI exemption in respect of qualifying new positions which are filled by qualifying new employees during the 2010 calendar year.
3. The Employers Prsi charge recently brought in on Share Based Remuneration has been abolished.
4. Where an individual has already obtained an entry visa for the UK, he/she will not be required to obtain a separate entry visa for Ireland thereby making it easier for visa required nationals to come to Ireland for short periods of time.
5. There is to be a reduction in the 13.5% rate of VAT to 9% in respect of services relating to tourism, such as restaurant and catering services, hotel and holiday accommodation, and other services. The reduction will be effective from 1 July 2011 and apply until the end of 2013.
6. The Air Travel Tax is to be abolished but will be subject to review in terms of increased routes by the Airlines.
7. The Reasearch and Development tax credit regime will be amended to assist companies account for the credit 'above the line' under US GAAP. The above the line approach is helpful to Irish subsidiaries of Multinational Companies competing for research and development projects.net of the credit.
The initiative is to be tax neutral as it is to be funded by a temporary levy on the market value of assets under management in pension funds. The levy will be at a rate of 0.6% per annum and will apply for the four years 2011 to 2014. |
