The Government has published the bill that gives effect to the measures announced in Budget 2024.
As well as implementing the tax changes announced on budget day, the Finance (No.2) Bill 2023 also introduces some administrative and technical changes to the tax code.
The bill runs to 270 pages, and the Department of Finance says that it is one of the largest in recent years, mainly due to the volume of legislation required to transpose new EU and OECD rules – including a minimum 15% tax rate – on corporate tax into Irish law.
As well as the changes in income taxes announced in Budget 2024, the bill also covers cost-of-living measures such as the reduced 9% VAT rate for gas and electricity, and the temporary excise-rate reductions on diesel, petrol and gas oil.
The bill also implements the introduction of new measures, such as the temporary tax relief on mortgage interest and tax relief on rental income.
EU directive on tax
The bill transposes the EU Minimum Tax Directive, also known as the Pillar Two Directive, into Irish law.
The directive, which emerged from an international tax agreement at the OECD, includes a minimum tax rate of 15% on the profits of large multi-nationals.
As part of the legislation on a minimum rate of corporation tax, the Government is introducing a Qualified Domestic Top-up Tax (QDTT).
The department said that draft legislative provisions relating to several issues are being held over for introduction at Committee Stage of the bill, due to the complex nature of certain drafting requirements, and the need to align certain provisions with existing legislation.
These include the provisions announced in Budget 2024 relating to the new Capital Gains Tax relief for ‘angel’ investors, and amendments to the exemption from income tax of certain income arising from leasing of farmland.