Budget 2023 has been delivered and digested by many interested parties across the country. But what does it actually mean for your business?
Energy Costs
A new scheme, The Temporary Business Energy Support Scheme (TBESS) will assist SMEs by paying for 40% of the increase in their energy costs up to a maximum of €10,000 per month). Eligibility criteria apply and are being developed
VAT
The reduced rate of VAT on gas and electricity at 9% will be extended to the end of February 2023. VAT on newspapers will be reduced to 0%, some medical supplies and treatments will be VAT-free from the 1st January. However, the reduced VAT of 9% for the tourism and hospitality sector will not be extended and will end on the 28th February 2023.
Corporation Tax
Businesses with turnover less than €750M will retain the 12% Corporation Tax rate, with businesses over that turnover increasing to 15%.
Corporation Tax relief in the form of the Knowledge Development Box (KDB) will be extended until 31st December 2026 but with an effective rate of 10% instead of 6.25%.
The corporation tax relief for film production companies is being extended to the end of 2028. This relief was due to come to an end by the end of 2024. This relief is given at a rate of 32% of the lower of (a) eligible expenditure, (b) 80% of the total cost of production of the relevant film, or (c) €70 million
Staff Gifts
The Small Benefit Exemption has doubled to €1,000 per annum. Employers may now grant two non-cash benefits (i.e. vouchers) to an employee in a single year
Farming
In farming, the construction of modern, efficient slurry pits will be assisted by an accelerated capital allowances scheme, allowing for the capital cost to be written off over two years rather than seven years.
The flat-rate compensation percentage for VAT for farmers will be reduced to 5 percent, allowing for unregistered farmers to apply for compensation on VAT incurred on farming inputs.
Several other schemes which were due to expire will be extended, including:
- Extension of Young Trained Farmer Relief from stamp duty (to 31st December 2025)
- Farm Restructuring Relief from Capital Gains Tax (to 31st December 2025)
- Young Trained Farmer and Registered Farm Partnership Stock Reliefs (to 31st December 2024)