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BUDGET 2013
Parfrey Murphy: Chartered Accountants
December 2012

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Contact
Parfrey Murphy
Chartered Accountants
Lee View House
South Terrace
Cork
Ireland

T: +353 (0)21 4310266
E: pm@parfreymurphy.ie
E-Newsletter Budget 2013Parfrey Murphy: Chartered Accountants
Parfrey Murphy: Chartered Accountants

We are always researching how we can make your business grow and prosper by reading business books, attending courses and trawling the internet. One idea can make a huge financial difference to you.

You will get some great ideas from our monthly newsletters. Please email them to your friends and colleagues if you find them useful.

Our aim is to help our clients increase their profitability, improve their cash flow and reduce their tax liabilities so that they have more disposable income.  Please feel free to call us on 021 4310266 or email us at pm@parfreymurphy.ie if you wish to do business with us.

BUDGET 2013


Personal Tax

 

Income Tax

There are no changes to the income tax rates, band or tax credits.

Local Property Tax
With effect from 1 July 2013 a local property tax (LPT) will apply and some of the main features of this tax are as follows:
  • Revenue will be responsible for administering and collecting this tax.
  • It will operate through a self-assessment system which will require property owners to ascertain the market value of their property. Revenue guidance will be provided or a competent valuer can be used.
  • The initial valuation is set until 2016.
  • The LPT will be charged at 0.18% of the market value of the property up to €1 million and at 0.25% on amounts above €1 million.
  • The market value of the property will be divided into bands with the initial band covering €0 - €100,000. Thereafter bands of €50,000 width will apply up to €1 million. The LPT will be calculated by applying the tax rate to the mid-point of the band. No band will apply where the property is valued at over €1 million.
  • There will be an exemption to the end of 2016 for new or previously unused properties which are bought during the period from 1 January 2013 to 31 December 2016.
  • First time buyer purchases in 2013 will also be exempt until 2016.
  • Returns must be submitted to Revenue by 7 May 2013. There will however be a 3 week extension for electronic filers.
  • The household charge ceases with effect from 1 January 2013.
  • The NPPR ceases with effect from 1 January 2014.
  • Any unpaid arrears together with interest and penalties on the NPPR and the household charge will remain as a charge on the relevant property.


Maternity Benefit
From 1 July 2013 this benefit will be taxable for all claimants.


Charitable Donations
Charitable donations with effect from 1 January 2013 from all individual doners will be treated the same with the tax relief being repaid to the particular charity at a new blended rate of 31%. An annual donation limit of €1 million will apply.


PRSI & Universal Social Charge
The weekly PRSI exemption of €127 has been removed.

The minimum level of annual PRSI for self-employed contributors will increase from €253 to €500.

From 2013 PRSI will be extended to all other sources of income i.e. dividends, rental income, deposit interest for certain public servants and from 2014 for all employees.

From 1 January 2013 the reduced rate of USC which applies to medical card holders and individuals aged over 70 will be discontinued for anyone with income in excess of €60,000 per annum.



Termination Payments
With effect from 1 January 2013 Top Slicing Relief will no longer be available on ex-gratia lump sums where the non-statutory element exceeds €200,000.

The employer rebate for statutory payments which was previously reduced from 60% to 15% will be abolished from 2013.


DIRT & Exit Tax
From 1 January 2013 deposit interest retention tax (DIRT) will be increased to 33%. Exit taxes will be increased to 33% for annual payments and 36% for others.


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