Revenue has updated the Income Tax (Employments) Regulations 2018 Tax and Duty Manual reflecting the changes made as a result of the Income Tax (Employments) Regulations 2022 S.I. No. 690 of 2022. These changes are operational since 1 January 2023 and amend the Income Tax (Employments) Regulations 2018 that prescribe the manner in which the deduction of tax from salaries and wages under the “Pay As You Earn” system operates. Further information is available in eBrief no.011/23.

Revenue has updated its Tax and Duty Manual for PAYE reviews where Week 53 applies to reflect the Finance Act 2022 changes:  Amendment to section 480B TCA 1997, to provide that the Week 53 provisions apply to the Sea-going Naval Personnel Tax Credit with effect from 1 January 2023. Application of the Week 53 provisions to the income threshold applicable when determining if an individual qualifies for the Home Carer Tax Credit. However, as this treatment was applied previously by Revenue on an administrative basis, claimants will not see any difference in the tax treatment applicable to them on foot of this change.

Revenue has updated its Stamp Duty Tax and Duty Manual to provide information on how section 31C SDCA 1999 (shares deriving value from immovable property situated in the State) interacts with section 31E SDCA 1999 (stamp duty on certain acquisitions of residential property).

Revenue has updated the Stamp Duties Consolidation Act 1999 - Notes for Guidance  to include all amendments to the 1999 Act by subsequent Acts up to and including Finance Act 2022.

Revenue has updated several chapters of the Stamp Duty Tax and Duty Manuals. Further information is available in eBrief no. 016/23.

Revenue has updated the Stamp Duty Tax and Duty Manual to provide information on how section 31D SDCA 1999 (cancellation schemes of arrangement) interacts with section 31E SDCA 1999 (stamp duty on certain acquisitions of residential property).

Revenue will allow the application of the zero rate of VAT to the supply of Covid-19 in-vitro diagnostic medical devices (testing kits) following a request from the Minister for Finance, Michael McGrath. The Covid-19 test kits must conform with the essential requirements of all relevant European Medical Device Directives. For example, a Covid-19 test kit product which has a CE marking is proof that it meets those requirements. This temporary measure applies from 1 January 2023 on an administrative basis pending enactment of the appropriate legislative provisions.

Members are reminded that, effective 1 January 2023, there have been changes to the rules for calculating benefit-in-kind (BIK) on company vehicles under section 121 TCA 1997 & section 121A TCA 1997. From that date: The BIK on all company cars, including electric vehicles, will be calculated with reference to CO2 emissions. The cash equivalent for vans will increase from 5 percent to 8 percent of the original market value (OMV). In addition, for the years 2023 to 2025, the cash equivalent of an electric vehicle made available for an employee’s private use will be calculated based on the actual OMV reduced by: €35,000 for the year 2023, €20,000 for the year 2024, and €10,000 for the year 2025. The changes are largely driven by the government’s Climate Action Plan 2021.

Revenue has updated the guidelines on the Temporary Business Energy Support Scheme (TBESS) with additional information following queries received by businesses wishing to avail of the scheme. A summary of the changes is outlined in the “What’s new” page at the beginning of the guidelines. Preliminary statistics published last week by Revenue show that there are 8,849 businesses currently registered with Revenue for TBESS, with €5.9 million paid in respect of 2,984 approved claims valued €6.64 million. Over one third of the claims for TBESS came from the wholesale and retail sector, with nearly another third of claims from the accommodation and food services sector. Read the complete statistics here.

Revenue has launched the e-tender process to establish the 2022/23 panel of experts who may be called upon to assist review claims for the Research & Development Tax Credit. The link to the 2022/23 e-tender application process is included in the updated Tax and Duty Manual under the footnote on page 2 and can be accessed here.

Revenue has created a Tax and Duty Manual to provide guidance on the operation of the Accelerated Capital Allowances for Farm Safety Equipment scheme available under section 285D TCA 1997. Section 285D TCA 1997 provides for a scheme of accelerated capital allowances for capital expenditure incurred, on certain farm safety equipment, by a person carrying on a trade of farming. The expenditure must be incurred in the period 1 January 2021 to 31 December 2023 and the Minister for Agriculture, Food and the Marine must certify the expenditure. Once certified, the expenditure can be written off at a rate of 50 percent per annum over two years. The scheme is subject to an overall annual budget of €5 million (excluding VAT). Additionally, there is a limit of €500,000 on the total amount of relief that can be granted to any person under this scheme.

Exchequer figures for 2022 show tax revenues increased by 22 percent relative to 2021 with €83.1 billion collected in total – the highest ever tax take. Contributing to this were income tax receipts of €30.7 billion (15 percent higher than 2021, and consistent with the strong post-pandemic recovery in employment), corporation tax receipts of €22.6 billion (a 50 percent increase on 2021), and VAT receipts of €18.6 billion (up 20 percent on last year). An Exchequer surplus of €5 billion was recorded to end-December 2022. This compares with a deficit of €7.4 billion in 2021 and the improvement reflects the significant increases in tax revenue and decline in Covid-related public expenditure. For the first time ever last year, corporation tax receipts were the State’s second-largest income stream. However, a significant part of this income is expected to be once-off in nature. It is also notable that the corporation tax figures for December were below levels expected by the Department of Finance. Commenting on the figures, Minister for Finance, Michael McGrath said: “The end-2022 Exchequer figures show a large headline surplus was recorded last year. This reflects a number of factors, including robust income tax and VAT receipts, both of which reflect the strength of the post-pandemic recovery in demand and employment. The phasing out of Covid-related expenditure is another reason for the surplus last year. By far the most important factor behind the headline surplus is the strength of corporation tax revenue – receipts from this source have doubled since just before the pandemic. My Department estimates that around half of these receipts are potentially at risk – if these receipts were excluded, we would instead be facing a significant deficit. That is why Government has acted to mitigate this vulnerability by transferring part of this windfall to the National Reserve Fund to rebuild our fiscal resources. It is also important to stress that today’s figures are, of course, backward looking. They do not offer a guide as to the challenges that we will have to address going forward. Keeping the public finances on a sustainable trajectory puts us in the best position to meet these future challenges. That is what this Government will continue to do.” Further details are included in the Fiscal Monitor December 2022.