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Noonan's Finance Bill to help SMEs

Wednesday, February 13 15:39:45

The Minister for Finance today published the Finance Bill giving legal effect to measures introduced in the Budget, along with some changes designed as a boost to smaller businesses.

"While we have seen significant progress since Budget day on a number of key issues there is no doubt that the SME sector will be the driver of the economic recovery across the country," Mr Noonan said. "This Government is committed to supporting this key sector and each of the measures included in Finance Bill 2013 are designed to help this critical sector to trade, to grow into new products and markets, to sustain existing and to create new jobs."

He said that one measure abolishes foreign service tax relief on lump sums paid to employees of multinationals on retirement or termination of their service.

The is aimed at preventing overseas companies with a presence in Ireland from transferring staff to the country for a short period of time before the end of their careers in order to qualify for a near tax-free lump sum paid to them in Ireland.

The Bill will also see a change to Research and Development Tax credits to reduce the amount of time a "key employee" in a firm must spend on R and D to qualify for the credit.

There is also an extension of a facility for Irish resident companies to file financial statements electronically with their Corporation Tax returns.

The Bill will also provide for the ratification of an International Tax Agreement between Ireland and the United States.

The Local Property Tax is to be amended to exclude any increase in value due to modifications to a home to enhance access for a person with a disability.

The amendment is one of a number of modifications to the property tax contained in the Finance Bill, published today by the Minister for Finance Michael Noonan.

Also among the measures are changes to the universal social charge for those aged 70 and over on incomes of more than E60,000; an increase in the tax on savings; and the taxation of maternity benefits.