Ireland: Budget 2016, knowledge development box | KPMG | GLOBAL

Ireland: Budget 2016, knowledge development box included

Ireland: Budget 2016, knowledge development box

Ireland’s budget 2016 was announced today, 13 October 2015, and details concerning the research and development (R&D) tax incentive known as the “knowledge development box” were (as was expected) provided in the budget statement. The “knowledge development box” would provide for a 6.25% corporation tax rate on profits arising to certain intellectual property (IP) assets that are the result of qualifying R&D activity that is carried out in Ireland.


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Read a budget summary [PDF 119 KB] prepared by the KPMG member firm in Ireland

The budget 2016 statement also provided:

  • No tax rate increase other than the excise tax on cigarettes
  • The marginal income tax rate for individual taxpayers earning up to €70,000 reduced to 49.5%
  • No change to the “reduced” or 9% value added tax (VAT) rate for the tourism and hospitality sector; no changes to the reduced VAT rate of 13.5% or the standard VAT rate of 23% in 2016
  • New capital gains tax rate of 20% on the sale of a whole or the part of a business, with the 20% rate applying to capital gains of up to €1 million
  • Existing €5 stamp duty on debit / ATM cards to be replaced, subject to a cap of €2.50 or €5 depending on card type
  • Tax incentives for home renovation, films 


Read more on a dedicated budget webpage of the KPMG member firm in Ireland.

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