Competing in an intangible driven economy

Ireland is increasingly competing in an intangible economy. This means not only being competitive when it comes to headline corporate tax rates but also competing more intensely for embedding internationally mobile skills, knowledge and capital in the economy. This can only be achieved by updating our investment offering in a post-BEPS age, encouraging Irish firms to grow and scale internationally, taking steps to drive innovation-led growth and making sure that Ireland is an attractive proposition for talent which is increasingly mobile in this hybrid work environment.

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Summary / Key measures

The set of measures in this section seeks to remodel our inward and outward offering to mobile investors, drive innovation led growth in Ireland, ensure we compete for mobile skills and support our digital economy.

1

Move to a territorial tax regime in 2023

Cost: €0m

2

Maximise our tax competitiveness within any new dispensation

Cost: €1m

3

Improve R&D tax credit take-up by dealing with underlying issues

Cost: €60m

4

Ensure the R&D tax credit meets any standards of 'refundability' or other qualifications to maintain its attractiveness under any OECD regime

Cost: €0m

5

Introduce accelerated capital allowances for advanced manufacturing

Cost: €5m

6

Establish an independent office akin to the Office of Tax Simplification in the UK

Cost: €1m

7

Improve the Budget Day process by consulting on any changes in advance

Cost: €0m

8

EU Debt-equity bias reduction allowance (DEBRA) proposals have positive potential but should be approached cautiously

Cost: €0m

9

Avoid double taxation of Restricted Stock Units (RSUs)

Cost: Minimal cost

10

Abolish the bank levy

Cost: €88m

11

Produce an SME tax roadmap

Cost: Cost neutral

12 Improve the KEEP scheme to ensure share options are an attractive choice for start-ups and high growth companies
Cost: €10m

13

Give firms access to a greater pool of equity investment

Cost: €10m

14

Introduce a Pro-forma R&D tax credit

Cost: €10m

15

Deliver on a long-term sustainable funding model for higher education

Cost: €100m

16

Increase the reckonable income for SUSI grants to match inflation

Cost: €12m

17

Leverage the National Training Fund to implement a Lifelong Learning Strategy for Ireland

Cost: €100m funded from the NTF surplus in 2023 of €1.2 billion with no deficit impact

18

Scale public investment in research and innovation

Cost: €100m

19

Allow tax support for spectrum licenses

Cost: €5m

20

Shared rural network

Cost: €40m

21

Introduce a time-limited labour market transition rebate, for companies which can show challenged viability due to State imposed increases in employment costs and regulation

Cost: Funded from NTF

22

Increase the entry point to the top rate of tax to €40,000 by 2024

Cost: €631m

23

Reform the operational and reward constraints in Revenue approved share option schemes

Cost: €10m

24

Work with HMRC to facilitate changes for cross-border workers in the Border region

Cost: €0m

25

Improve Ireland's system for mobile talent in the context of growing global competition

Cost: €50m

26

Extend regimes for high skilled workers to SMEs

Cost: €10m

27

Implement a revised non-standard PRSA for savers

Cost: Cost neutral

28

Embrace Ireland's role in the EU digital regulation, strengthen regulatory capacities and lead on digital policy issues at an EU level

Cost: €10m

29

Ensure further resources for strengthening coherence and capacities, across relevant statutory bodies and our cybersecurity ecosystem, necessary in the implementation of the National Cyber Security Strategy

Cost: €7m