Some of the taxation measures introduced in the four-year plan are as follows

  • Maintain the 12.5% corporation tax rate
  • PAYE threshold reduced by €3,000 to €15,300 by 2014
  • Net Pay by 2014 for a single person on €55,000 will be reduced by €1,860 per annum (€36 per week) or 4.8%. The net pay for a married on-income family on €55,000 will be reduced by €2,310 per annum (€44 per week) or 5.4%.
  • pension relief changes in the plan provides for the elimination of employee PRSI and Health Levy relief on pension contributions in 2011. It also commits, among other changes in 2011, to reducing the annual earnings cap for employee/personal pension contributions by almost 25% from €150,000 to €115,000
  • Ex-gratia termination and pension lump sum payments in excess of €200,000 to be taxed
  • PRSI, Health and Income Levy relief will no longer apply to Approved Profit Sharing Schemes and Approved Save-As-You-Earn Schemes.
  • PRSI, Health Levy charge for Unapproved Share Options and Share Awards.
  • Tax relief on trade union subscriptions will be abolished in 2011.
  • Increase Vat rate from 21% to 22% in 2013, increasing to 23% in 2014
  • introduce a “local services” (interim property tax) contribution of €100 per annum
  • Reform capital acquisitions and capitals gain tax

Click here to view Revenue Summary Leaflet (PDF)

Click here to view Full National Recovery Plan (PDF)