Temporary €250m business support package in budget

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R&D tax credit increased and new incentive for angel investors announced as part of Budget 2024

Budget 2024: The Government will roll out a new targeted capital gains tax relief for angel investors to incentivise investment in innovative early-stage companies

Minister for Finance Michael McGrath confirmed the Republic’s corporation tax rate for large companies would increase from 12.5 per cent to 15 per cent in line with international reform agreed upon by the members of the Organisation of Economic Co-Operation and Development . Commenting on the announcement, Ian Collins, partner and head of innovation incentives at EY Ireland, welcomed the decision. “The increase will be viewed very positively right across business, from the SME sector who can now avail of an additional benefit for performing R&D, through to the multinational sector where it will help to keep pace with forthcoming changes in the international tax environment for large corporations.

David Shanahan, partner in the tax and legal division of Deloitte Ireland, said the package of incentives would benefit indigenous businesses. However, he said: “While the above measures are very welcome there is a need for a further comprehensive suite of measures to support entrepreneurship and to encourage founders to retain ownership and to scale their businesses.”

 

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