Jobs Initiative May 2011

Click here for a detailed summary on Jobs Initiative May 2011

The main taxation points of the initiative are summarised below.

Excises

• Air travel tax rate to be reduced to 0%
• Commencement date is expected to be 1 July 2011

VAT

• Introduction of a second temporary VAT rate of 9%
• The new VAT rate is to apply from 1 July 2011 to December 2013
• The new rate is aimed mainly at the tourism sector

PRSI

• The lower rate of PRSI is to be halved from 8.5% until the end of 2013 for jobs that pay up to €356 per week (Sub-classes A0 and AX)
• The employer PRSI charge on share-based remuneration introduced in Budget 2011 is to be abolished

Research and development

• The legislation is to be amended to enhance accounting flexibility

Pension funds levy

• The measures are to be funded by 0.6% levy on the market value of assets in private pension schemes approved under Irish tax legislation
• The valuation date for levy purposes is to be 1 January 2011
• The levy is to be temporary and last for 4 years