Irish SMEs Want Reduction In Capital Gains Tax
Ireland’s Small Firms Association recently argued that better supporting SMEs through the tax system would mitigate the country’s over-reliance on revenues linked to foreign direct investment.
According to SFA, Ireland’s competitiveness is under threat. It therefore argued that the Government needs to take steps to “de-risk our economy from over-reliance on FDI and seize an important opportunity to future-proof our economic model.” It said that the Budget needs to provide certainty to small businesses.
One of SFA’s priorities is a reduction in capital gains tax (CGT). It recommended a reduction in CGT to 20 percent across the board (pointing out that, at 33 percent, Ireland’s CGT rate is one of the highest among developed economies), in order to make investing in a business in Ireland more attractive. It also argued for an increase in the lifetime limit for gains under the CGT Entrepreneur Relief to EUR15m, and for the removal of the EUR3m cap on the value of business assets allowable for Retirement Relief.
For more information on this, and other topical international tax matters, please visit: https://www.cchgroup.com/roles/corporations/international-solutions/research/global-tax-weekly-a-closer-look