Resources & Policy

Budget 2018

Budget 2018 was announced by Minister for Finance, Paschal Donohue, on 10th October 2017. Some of the key measures include:

  • €1.5bn Rainy Day Fund to be established in 2018
  • Firm commitment to 12.5% corporation tax rate
  • Announcement of Key Employee Engagement Programme (KEEP) to support SMEs in retaining key talent
  • Retention of the 9% VAT rate for the tourism and services sector
  • €750m for commercial investment in housing finance via establishment of Home Building Finance Ireland
  • Stamp duty increase on non-residential property from 2% to 6%
  • Vacant site levy to increase from 3% to 7% from 2019
  • Introduction of a VAT refund scheme for charities
  • €200 increase in the earned income tax credit
  • Changes to universal social charge (USC) rates
  • Increase to standard income tax rate band of €750 per annum from an entry point of €33,800 to €34,550
  • €5 increase on weekly social welfare and State pension payments effective March 2018
  • A sugar tax on sugar sweetened drinks to be introduced in April 2018
  • Mortgage interest relief to be reduced incrementally and cease from 2021

For further reading, below is a summary of the main changes included in Budget 2018, prepared by a number of professional services firms:

Mazars - Budget 2018

Deloitte - Budget 2018

KPMG - Taxing Times - Budget 2018 & Current Tax Developments

William Fry - Budget 2018

LHM Casey McGrath - Budget 2018