Budget 2013

7 December 2012

Minister Noonan introduced the 2013 Budget on 5th December 2012. This budget sees the introduction of a property tax, a 10 Point Tax Reform Plan to assist SMEs and a Real Estate Investment Trust system to stimulate the property market.  CAT, CGT and DIRT were all increased by 3% and there was also a broadening of the PRSI base.  Increases were also announced to motor taxes and excise duty. Surprisingly, the proposed pension reforms will not take effect until 2014.

The highlights are as follows:

  • The Introduction of a Local Property Tax (“LPT”)
  • No change in income tax rates, bands or tax credits
  • DIRT increased to 33%
  • Increase in Capital Gains Tax and Capital Acquisitions Tax to 33%
  • CAT Thresholds decreased by 10%
  • Extension of PRSI for employees from 2014
  • USC increases for over 70s
  • R&D Credit Increases
  • Pensions
  • Start-up reliefs
  • Close Company Amendments


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