Mazars report on Budget 2023

Most companies are confident they have the resilience to weather a crisis.

88%

Temporary Business Energy Support Scheme Assist businesses carrying on a Case I trade with their energy costs for the winter months. The scheme will operate by comparing the relevant unit price for the relevant period in 2022 with that for the corresponding period in 2021. If the increase in the unit price is more than 50%, then support is available based on 40% of the amount of the increase in the bill amount. A monthly cap of €10,000 per trade will apply, and an overall cap will apply on the total amount a business can claim. The scheme is subject to approval by the EU Commission as it is required to be compliant with the EU State Aid Temporary Crisis Framework. Small Benefit Exemption This allows employers to provide limited non-cash benefits to employees without the application of income tax, USC or PRSI - increased from €500 to €1,000 annually and permits the granting of two vouchers by an employer annually to an individual employee. The changes apply from 2022.

Supports for business

The income tax package of over €1.1 billion incorporates:

Personal

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Frank Greene

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Head of Tax

The Mazars Budget report

Budget 2023

An average of 87% of leaders are confident their business can tackle the trends affecting them - an increase of 8 percentage points over last year.

87%

Businesses consider a transformation in their sustainability strategy in the coming three to five years likely.

62%

Remote working is here to stay: half expect increased remote or flexi-working to be a long-term change for their business.

50%

Adapting to remote working’ was the most significant challenge caused by Covid-19: almost half named it in their top three disruptions.

45%

Technology trends are firmly on executives’ radars: over half expect technology/innovation trends to have a major impact on their business in the next 3-5 years.

53%

Three quarters plan to increase investment in sustainability initiatives over the next 12 months – a 27-point increase.

75%

Half have already made public commitments to ESG issues including reducing waste (62%), reducing pollution (60%), human rights (58%), responsible supply chain (57%), diversity (51%).

50%

Most (58%) say Covid-19 has sharpened their focus on ESG: in large companies ($1bn+ revenue) 70% say it has increased.

70%

Most (63%) already report on sustainability and a further 25% plan to in the coming 12 months.

63%

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Mazars Budget report

Budget 2023

"A Budget for its time”, Minister Donohue delivered his sixth Budget speech to the Dáil at lunchtime today. As expected, today’s “Cost of Living” Budget focused on helping individuals, households and businesses cope with rising prices. Today’s Budget combines a package of once-off measures worth €4.1 billion with budgetary measures for 2023 of €6.9 billion, totalling €11 billion for Budget 2023. A further €300 million in public service support measures funded from the Contingency Reserve Fund was also announced, bringing the total package of once-off measures to €4.4 billion. The budgetary measures include an income tax package of over €1.1 billion. The announced measures comprise immediate assistance for households and businesses; a package of support for public services, sports clubs, community and voluntary organisations; and a range of new measures for 2023.

Mazars Budget report

Budget 2023

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Frank Greene

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Head of Tax

Increase in the Standard Rate Cut Off Point by €3,200 to €40,000 with proportionate increases for married couples and civil partners;

Universal Social Charge (USC) – increase in the 2% rate band from €21,295 to €22,920 in line with the increase in the national minimum wage; extension of the concession for individuals holding a medical card earning less than €60,000 per year - so that they pay a reduced rate of USC - for a further year

The main tax credits – Personal, Employee, and Earned Income – are each increasing by €75;

Increase in the Home Carer Tax Credit by €100;

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The income tax package of over €1.1 billion incorporates:

Personal

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Contact

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Frank Greene

Contact

Head of Tax

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Ken Killoran

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Partner, Tax - Dublin

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Paul Mee

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Partner, Tax - Galway

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Gerry Vahey

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Partner, Tax - Dublin

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Cormac Kelleher

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Partner, International Tax - Dublin

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Alan Murray

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Partner, Tax - Dublin

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