Budget Response from CPA Ireland
- Future Growth loan scheme could help Brexit-proof indigenous business
- Changes to the tax treatment of self-employed welcome
- Failure to amend CGT relief for Entrepreneurs disappointing
Tuesday October 9th 2018, CPA Ireland has broadly welcomed Budget 2019 which it described as ‘both pro-SME and pro-entrepreneurship’. The changes to the tax treatment of the self-employed was highlighted as particularly welcome which they say will encourage entrepreneurship and job creation.
Commenting on the budget CPA Ireland President Cormac Mohan said: “There are challenges forming on Ireland’s economic horizon, with Brexit chief among them. Budget 2019 contains a series of positive measures that will empower indigenous SMEs to combat these challenges. We also welcome the proposed introduction of the €300m Future Growth loan scheme, while the precise nature of this scheme is currently unclear such a scheme has the potential to Brexit-proof Irish indigenous business.”
Commenting on Personal Tax Changes Mr Mohan said “We welcome that many CPA Ireland’s recommended changes to the personal taxation system have been actioned by Government. We have consistently called for an end to the tax discrimination against the self-employed. The increase of €200 in the earned income tax credit for the self-employed is welcome. However, a gap continues to exist with PAYE workers and it is our hope this will be finally closed in Budget 2020. We were however disappointed to note that the 3% USC surcharge where non-PAYE income is more than €100,000 a year has been retained. This will continue to be a disincentive to attracting key roles and talent into Ireland.”
Last year CPA Ireland welcomed the introduction of the KEEP Scheme and the changes announced by the Minister today will increase its attractiveness will help SMEs to compete for skilled staff.
Mr Mohan closed by expressing his disappointment that “changes to CGT Entrepreneur relief were not announced. With Brexit less than six months away we need to create parity with the UK to enhance Ireland’s attractiveness to entrepreneurs to ensure indigenous companies develop beyond start-up phase. The introduction of a tapered CGT rate reflecting the length of time the individual has held shares would encourage longer-term commitment to and scaling of Irish indigenous business.”
Please see media coverage from the Irish Times here and Irish Examiner here