Budget 2022: A powerful programme of supports for the department’s sectors
The Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media, Catherine Martin TD, and Minister of State, Jack Chambers TD, today (13 October) announced details of €1,197,498,000 gross funding allocated to the department in Budget 2022, covering an extensive range of imaginative new funding streams and measures to support the resilience and growth of practitioners, businesses, communities and operations in sectors overseen by the department.
The Minister for Finance Paschal O’Donoghue referenced the government’s recent decision to join the OECD International Tax Agreement on the future of Corporation Tax. When the Agreement takes effect, which is expected to be 2023, Ireland will introduce the 15% minimum effective rate for large multinational companies. The Minister confirmed that the existing Corporation Tax rate of 12.5% will continue to apply to businesses with turnovers not exceeding €750m, meaning that 160,000 businesses who currently employ 1.8m people in Ireland will continue to benefit from the lower 12.5% Corporation Tax rate. The Minister noted that it was in the national interest to join the Agreement and by doing so Ireland will be in a position to maintain its tax competitiveness and to provide long-term certainty for businesses and investors.
The temporary reduction in the VAT rate for the hospitality sector will remain in place until the end of August 2022. The rate is currently at 9%, down from the usual rate of 13.5%.
Innovation Equity Fund
The Minister announced that the Ireland Strategic Investment Fund (ISIF) would establish an innovation equity fund to invest in highly-innovative, domestic enterprises. The government intends to commit a further €30 million investment to this fund through Enterprise Ireland, which will be matched by €30 million from the European Investment Fund.
Employment Wage Subsidy Scheme (EWSS)
This is a subsidy that was introduced to assist employers who experienced a downturn of 30% or more in turnover in comparison to their 2019 performance as a result of Covd-19. It is intended for the EWSS to remain in place in modified form until the end of April 2022.
The standard rate bands will be increased by €1,500 per annum and personal tax, employee tax and earned income credits increased by €50 each per annum from 1st Jan 2022. There will also be a new tax credit introduced for remote working, which will equate to a discount of 30% on energy, heat and broadband bills for each day worked from home.
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