Budget 2021 has been broadly welcomed
In response to the announcement of Budget 2021 earlier this week Leanne Storan, Tax Director at EY Limerick has been giving her analysis.
"Traditionally budgets have been characterised by reliance on the so called ‘old reliables’ to raise taxes, but Budget 2021 could be seen as ushering in the era of the ‘new reliables"
“This was a budget delivered by a finance minister who is also the President of the Eurogroup."
“The budget was pitched to focus on the immediate challenges, but the Minister clearly had an eye towards the future economy and the critical role that innovation has to play in that.
“It is good news that the knowledge development box that supports R&D has been extended by two years to December 31, 2022. The proposal to look at a new tax credit for the digital gaming sector from 2022 is also very welcome. In addition, the mandate announced by the Minister to form a group geared towards leveraging European capital with a view to establishing an equity fund to invest in domestic, high innovation enterprises builds on Ireland’s exiting suite of innovation incentives. All this underlines the importance of innovation in Ireland’s future competitiveness."
"Given the increasingly important role of the knowledge economy and the need for Ireland to continue to remain internationally competitive, we would have liked to have seen a 4-year extension to the knowledge development box. This would provide even greater certainty to business and encourage more taxpayers to avail of this regime. We will continue to engage with Government to seek the improvements we feel are still needed here.
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