Building Your Business
How will ROI Budget Report 2016 Impact your Business?

14 October 2015


The 2016 budget was announced on the 13th October 2015 by Finance Minister Michael Noonan, the minister announced a number of important changes; namely the introduction of a €550 tax credit for small business owners and self-employed people and an increase in the USC entry point to €13,000 combined with a 0.5% reduction in the 3.5% and 1.5% USC rates to 3% and 1% respectively, along with a 1.5% reduction in the 7% rate bringing it down to 5.5%. With these USC changes the marginal rate of income tax will reduce to 49.5% for those earning no more than €70,044.

In other taxes the Minister confirmed the corporation tax rate of 12.5% would remain, as would the 9% VAT rate, in relation to capital taxes the CAT lifetime tax-free threshold for gifts & inheritances from parents to their child has been increased from €225,000 to €280,000. Also announced was a special 20% CGT rate on disposals of a part or whole of a business up to a value of €1million. 

For companies involved in R&D the minister announced a new 6.5 per cent corporation tax rate under a new “knowledge development box” (KDB). The aim is to promote companies to be innovation and incentivise this with a lower corporation tax rate. 

  • Cavan
  • Louth
  • Meath
  • Monaghon