Tax Strategy Group Papers - Budget 2025

On Tuesday, 23 July 2024, the Department of Finance published the Tax Strategy Group Papers for Budget 2025. In addition to the publication of a presentation paper by Michael Flanagan, Economics Division at the Department of Finance, on the Irish Economic Situation and Outlook, the following 9 papers were published: 

  1. Income Tax 

  2. Social Protection Budget Package – Budget 2025 Issues

  3. Corporation Tax

  4. Enterprise Supports

  5. Agri-Taxation Measures

  6. Capital and Savings Taxes and Stamp Duty

  7. Value Added Tax

  8. General Excise 

  9. Energy and Vehicle Taxation 

The papers can be found here. 

We have set out below some key highlights from the papers. 

 

Income Tax 

  • Issues covered in this paper include a summary of tax yields, information on the distribution of Income Tax and USC, and relevant updates including a review of Incapacitated Child Credit, tax relief available for sporting bodies and Philanthropy. The paper also provides an update on Income Tax property related measures, such as the Rent Tax Credit and Help-to-Buy scheme, as well as developments in relation to pensions tax provisions. 

 

Social Protection Budget Package – Budget 2025 Issues

  • The Budget Package paper reviews recent Budget changes in respect of social welfare and discusses the impact of potential cost of living measures and social welfare for Budget 2025. 

 

Corporation Tax

  • This paper contains an overview of trends in Corporation Tax receipts. 

  • It also gives an overview of the ongoing work on international tax reform, the progress and potential implications of Pillars One and Two, and EU tax developments in this area.

 

Enterprise Supports   

  • This paper provides an overview of a number of enterprise schemes which support business activity and encourage investment in the economy, in particular in indigenous small and medium enterprises. It also outlines changes made to these enterprise support schemes in recent years.

 

Agri-Taxation Measures

  • This paper sets out the current position on the current agri-taxation measures available to the sector. These measures include exemptions, deferrals and repayments of Income Tax, Capital Acquisitions Tax, Capital Gains Tax, Stamp Duty, Value Added Tax, and Excise Duty. 

 

Capital and Savings Taxes and Stamp Duty

  • This paper provides an overview of the current position on Capital Gains Tax, Capital Acquisitions Tax, Stamp Duty, and the Residential Zoned Land Tax. 

  • The paper also includes a short update on the Tax Appeals Commission, Tax Expenditures and Savings Taxes.  

 

Value Added Tax

  • This paper reviews the rates and structures of VAT. 

  • The paper also provides an update on VAT developments at EU level with the ongoing discussions on the VAT in the digital age proposal. 

  • In addition, the paper sets out a range of policy options that may be considered as part of Budget 2025. 

 

General Excise 

  • This paper covers a number of topics including Alcohol Products Tax, Sugar Sweetened Drinks Tax, Tobacco Products Tax and Betting Duty. 

 

Energy and Vehicle Taxation

  • This paper gives an overview of Energy Taxes, and related EU developments, Carbon Tax, Motor Vehicle Taxes and a review of the Car Parking Levy legislation.