Budget 2021 Summary and Highlights

Budget 2021 Summary. Gallagher Keane Chartered Accountants Dublin

Budget 2021 Summary and Highlights

The Minister announced a total budgetary package of €17.75bn. The budget package is unprecedented in both size and scale in the history of the Irish state.

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Budget 2021 Highlights

  • Introduction of the Covid Restrictions Support Scheme (CRSS) targeted at supporting those sectors of the economy who have suffered an 80% reduction in turnover as a result of the introduction of level 3 (and above) lockdowns. The main applicants will likely be the hospitality, arts and entertainment sectors.
  • The Government has committed to replace the current Employment Wage Subsidy Scheme (EWSS) when it expires in March 2021 with a similar scheme for the remainder of 2021.
  • Reduction in the reduced VAT rate from 13.5% to 9% for the hospitality and tourism sectors effective from 1 November until 31 December 2021.
  • Extension of tax warehousing to include the balance of income tax for 2019 and 2020 preliminary tax obligations for the self-employed. There will be no interest charge for the first 12 months and 3% thereafter.
  • An increase of €150 in the Earned Income Credit for the self-employed. This brings self-employed tax credits in line with PAYE employees.
  • No change in the standard rate of corporation tax 12.5%.
  • Commercial rates waiver extended for the final quarter of 2020.

Budget 2021 announced October 13th 2020.