Budget 2021 Summary and Highlights
Conor Gallagher
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.
