‘The CGT rate has long been a cause of frustration for entrepreneurs’

MAIREAD HARBRON Tax Partner PwC

TAX ISSUES Attracting and retaining talent is a persistent challenge for private enterprise. My clients would like to see the Key Employment Engagement Programme (KEEP) enhanced to further support businesses in attracting and retaining talent. And for those planning for future succession or exits, raising the CAT Band

A threshold to €500,000 and removing anomalies from CGT retirement relief would be a welcome boost for indigenous entrepreneurs. Increasing the small benefit exemption for small enterprises from €500 to €1,000 would make a difference, efficiently transferring money to employees while also enabling these companies to better compete for talent with their multinational counterparts.

PERSONAL TAX The level of relief available for individual pension contributions is limited. Employer contributions are less restrictive so

I often work with clients to develop incentive plans which include employer pension contributions. For certain executives who are assigned to work in Ireland from abroad, the Special Assignee Relief Programme (SARP) relief provides significant income tax mitigation. An extension to the relief beyond 31 December 2022 in Budget 2023 would be welcome by businesses as a means of attracting and retaining talent. The relief is an important component in Ireland’s competitive FDI offering.

CAPITAL TAXES A reduction in the CGT and CAT rate from 33% seems unlikely in the short term, as the government will need to focus on cost-of-living measures in this year’s budget. However, it is one to keep on the agenda. Ireland’s CGT rate is among the highest in the world and has long been a cause of frustration for Irish entrepreneurs. A targeted reduction in CGT or an enhancement of Entrepreneur Relief to allow for angel investment would be useful in encouraging individuals with an entrepreneurial spirit to re-invest in building new businesses and creating more jobs.

REMOTE WORKING The present incentives for hybrid working are administratively cumbersome. Employers could be incentivised to invest in the infrastructures required to ensure that remote and hybrid working is a viable option for their employees.

For example, a company could, through an accelerated super capital allowance deduction in year one, write off expenditure on IT equipment and software for employees to facilitate continued remote and hybrid working from home where possible.

EXIT RELIEFS Many business owners who come to me to devise a succession plan are aware of the reliefs at a high level, but oftentimes are unaware of the restrictions of the reliefs. entrepreneurs are so focused on growing their business that succession planning is left on the back-burner until a life event brings it into focus – this is completely understandable.