Budget 2020 - Employment Related Changes

It is, of course, Budget 2020 time and Mazars have kindly written an article for Legal Island readers which sets out the employment-related changes, including the following measures from an employment tax perspective:

Summary list of employment-related changes

• No change in personal tax rates or bands.

• The BIK exemption on electric cars is extended to 2022.

• Special Assignee Relief Programme (SARP) relief and Foreign Earnings Deduction (FED) relief extended to 2022.

• The Employment and Investment Incentive (“EIIS”) is extended and improved.

• The Key Employment Engagement Programme (KEEP) has been improved

• From 1 Jan 2020, Dividend Withholding Tax (DWT) will increase by 5% from 20% to 25%.  Also, a modified DWT rate will be introduced in 2021 by reference to a personalised rate of DWT to each taxpayer aligned to the rate of tax they pay on their PAYE income.

• From 1 Jan 2020, the employer PRSI higher rate will increase to 11.05%.

For more information, please click on the link below for Mazars Budget Report 2020.