Dear reader,

Welcome to the Sheehan Quinn March ezine.

Revenue are now targeting companies in relation to payroll deductions from directors' remuneration so we have detailed some information on this.

We have also highlighted changes that may be relevant for you and your business from the recent Finance Bill.

Enjoy the read and please contact us with your questions or with any feedback you may have.

Kind regards,

The team at Sheehan Quinn & Company

Taxation of Directors Remuneration

The Revenue are targeting companies in relation to payroll deductions from directors’ remuneration.  The position of a director in an Irish incorporated company is regarded as a public office. PAYE/USC and PRSI should be deducted by a company when paying any remuneration to directors. 

Find out about tax exposure - click here.

Non Principal Private Residence Charge 2012

Collection of the Non Principal Private Residence (NPPR) Charge for 2012 will commence on 31st March 2012 and is payable by 30 June 2012. The NPPR Charge is payable also by non-residents with property in Ireland.

Upcoming Tax Deadlines

Click here to read upcoming tax dates and deadlines.

Finance Bill 2012

The Government published Finance Bill 2012 on 8th February 2012. We have highlighted the key changes of interest under each category:

• Personal Taxes
• Business Taxes
• Capital Taxes
• Property & Construction
• Other Measures

Finance Bill - Personal Taxes

PRSI on Non Employment Income of Employees

PRSI of 4% will be payable on non-employment income of employees and certain pensioners from 1 January 2013.

Mortgage Interest Relief
The Bill provides for a new rate of mortgage interest relief of 30% in respect of qualifying interest paid by first time buyers who purchased their principal private residence between the years 2004 to 2008. Read more

DIRT
The rate of DIRT has been increased to 30% with effect from 1 January 2012. Read more.

Finance Bill - Business Taxes

Corporation Tax Relief For Start Up Companies
The scheme which provides relief from corporation tax for new start-up companies has been extended to include companies that commence to trade in the years 2012 to 2014.

Relevant Contracts Tax
Where a principal enters into relevant contract with a subcontractor they will be obliged to provide Revenue with details of the contract online including a declaration of the contract being entered into is not a contract of employment. Read more.

Finance Bill - Capital Taxes

Capital Taxes

The capital gains tax rate and the capital acquisitions tax rate has increased from 25% to 30% with effect from 7 December 2011.
The capital acquisition tax thresholds have also been reduced.

Retirement Relief
There is also an important change to the Retirement Relief Exemption for Capital Gains Tax.

CGT Relief
A special incentive CGT measure is being introduced for property purchased between 6 December 2011 and the end of 2013. Read more.

Finance Bill - Property & Construction

Stamp Duty
Stamp Duty has been reduced from 6% to 2% for all non-residential property.

Legacy Property Reliefs
5% surcharge will be imposed on investors with an annual gross income of over €100,000, which is sheltered by property reliefs. It will be collected as an additional 5% USC.  This measure takes effect from 1st January 2012. Read more.

Finance Bill - Other Measures

VAT
An increase in the standard rate of VAT by 2% to 23% came into effect on 1 January 2012.

Employer PRSI
Employer PRSI relief for employee pension contribution has been eliminated in full from 1 January 2012.

Revenue Job Assist
The Revenue Job Assist Scheme provides incentives to employers if they employ a person who has been unemployed for at least 12 months, they will receive a double deduction for a 3 year period for salaries paid in relation to the qualifying employment.  It also allows employees to claim additional tax allowances for the 3 year period and the employee is also entitled to retain certain other benefits, i.e. medical card, fuel allowances, etc. for the 3 year period.