(a) is made by a PEPP provider (in this paragraph referred to as the ‘declarer’) in respect of units which are assets in a PEPP, (b) is signed by the declarer, (c) is made in such form as may be prescribed by the Revenue Commissioners, (d) declares that, at the time when the declaration is made, the units in respect of which the declaration is made— (i) are assets of a PEPP, and (ii) are managed by the declarer for the individual who is beneficially entitled to the units, (e) contains the name, address and tax reference number of the individual referred to in subparagraph (d), (f) contains an undertaking by the declarer that if the units cease to be assets of the PEPP, including a case where the units are transferred to another PEPP, the declarer will notify the investment undertaking accordingly, and (g) contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1A of Part 27.”.
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(29)Schedule 2C to the Principal Act is amended by the insertion of the following paragraph after paragraph 11: “Declaration of PEPP providers regarding PEPPs and vested PEPPs 12. The declaration referred to in section 739K, in respect of a PEPP or a vested PEPP referred to in paragraph (a) or (f) of the definition of ‘specified person’ in that section, is a declaration in writing to the IREF which— (a) is made by a PEPP provider (in this paragraph referred to as the ‘declarer’), (b) is signed by the declarer, (c) is made in such form as may be prescribed by the Revenue Commissioners, (d) declares that, at the time of making the declaration, the units in respect of which the declaration is made— (i) are assets of a PEPP or a vested PEPP, and (ii) are managed by the declarer for the person who is beneficially entitled to the units, (e) contains the name, address and TIN of the person referred to in subparagraph (d)(ii), (f) contains an undertaking by the declarer that if the units cease to be assets of the PEPP or the vested PEPP, including a case where the units are transferred to another PEPP or vested PEPP, the declarer will notify the IREF in writing accordingly, (g) contains a certificate by the declarer stating whether or not the unit holder is a specified person after the application of section 739M, (h) provides, where the PEPP or vested PEPP is one to which paragraph (f) of the definition of ‘specified person’ applies, supporting documentation evidencing equivalence, (i) contains an undertaking by the declarer that if the PEPP or vested PEPP becomes a specified person, the declarer will notify the IREF in writing accordingly, and (j) contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1B of Part 27.”.
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(30)Schedule 23B to the Principal Act is amended— (a) in paragraph 2— (i) in subparagraph (b), by the substitution of “with section 772(3A), 784(2A), 787H(1) or 787AB(1)” for “with section 772(3A), 784(2A) or 787H(1) ”, and (ii) by the insertion of the following subparagraphs after subparagraph (bc): “(bd) the individual does not elect to exercise an option in accordance with section 787AB(1) and instead retains the assets of the PEPP in that PEPP, (be) the individual is a PEPP contributor and the PEPP becomes a vested PEPP of a kind referred to in paragraph (c) of the definition of ‘vested PEPP’ in section 790D(1),”, (b) in paragraph 3, by the insertion of the following subparagraphs after subparagraph (dc): “(dd) where the benefit crystallisation event is an event of a kind referred to in paragraph (2)(bd), the aggregate of the amount of so much of the cash sums and the market value of such of the assets as are retained in the PEPP or in any other PEPP, (de) where the benefit crystallisation event is an event of a kind referred to in paragraph (2)(be), the aggregate of the amount of any cash sums and the market value of the assets in the PEPP at the date the individual attains the age of 75 years,”.
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(31)Schedule 34 to the Principal Act is amended by the insertion of the following paragraph after paragraph 12: “13. A PEPP contract (within the meaning of Chapter 2D of Part 30) in respect of a PEPP (within the meaning of that Chapter).”.
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(32)Section 85(1) of the Capital Acquisitions Tax Consolidation Act 2003 is amended— (a) in paragraph (b), by the substitution of “to an individual,” for “to an individual, or”, (b) in paragraph (c), by the substitution of “ Taxes Consolidation Act 1997 , or” for “ Taxes Consolidation Act 1997 ,”, (c) by the insertion of the following paragraph after paragraph (c): “(d) a PEPP, within the meaning of Chapter 2D of Part 30 of the Taxes Consolidation Act 1997 , where assets of the PEPP are treated under subsection (4) or (4B), as the case may be, of section 787AA of that Act as having been made available to an individual,”, (d) in paragraph (ii), by the substitution of “such property,” for “such property, or”, (e) in paragraph (iii), by the substitution of “accumulations, or” for “accumulations.”, and (f) by the insertion of the following paragraph after paragraph (iii): “(iv) a PEPP, within the meaning of Chapter 2D of Part 30 of the Taxes Consolidation Act 1997 , registered for the purposes of that Chapter under Article 7 of Regulation (EU) No. 2019/1238 of the European Parliament and Council of 20 June 20196 .”.
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(33)The Stamp Duties Consolidation Act 1999 is amended— (a) in section 82C(1), in the definition of “pension scheme”— (i) in paragraph (e), by the substitution of “the Act of 1997,” for “the Act of 1997, or”, (ii) in paragraph (f), by the substitution of “Act of 1997,” for “Act of 1997;”, and (iii) by the insertion of the following paragraph after paragraph (f): “(g) a PEPP contract, within the meaning of Chapter 2D of Part 30 of the Act of 1997, in respect of a PEPP, within the meaning of that Chapter;”, and (b) in section 125B(1)— (i) in the definition of “administrator”— (I) in paragraph (b), by the substitution of “in section 784(4A)(ii) of that Act,” for “in section 784(4A)(ii) of that Act, and”, (II) in paragraph (c), by the substitution of “section 787A(1) of the Act of 1997, and” for “section 787A(1) of the Act of 1997;”, (III) by the insertion of the following paragraph after paragraph (c): “(d) a PEPP provider, within the meaning of Chapter 2D of Part 30 of the Act of 1997;”, and (ii) in the definition of “scheme”— (I) in paragraph (b), by the substitution of “or part of a trust scheme, as the case may be,” for “or part of a trust scheme, as the case may be, or”, (II) in paragraph (c), by the substitution of “made available to the PRSA contributor, or” for “made available to the PRSA contributor;”, (III) by the insertion of the following paragraph after paragraph (c): “(d) a PEPP contract, within the meaning of Chapter 2D of Part 30 of the Act of 1997, in respect of a PEPP, within the meaning of that Chapter, other than a PEPP contract in respect of which a lump sum, to which paragraph (a) of section 787AA(3) of the Act of 1997 applies, has been paid or made available to the PEPP contributor;”.
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Removal of benefit-in-kind charge from employer contributions to PRSAs and PEPPs 22. (1) Section 118 of the Principal Act is amended by the substitution of the following subsection for subsection (5): “(5) Subsection (1) shall not apply to expense incurred by the body corporate in or in connection with the provision for a director or employee, or for the director’s or employee’s spouse, civil partner, children or dependants, or the children of the director’s or employee’s civil partner of any pension, annuity, lump sum, gratuity, contribution to a Personal Retirement Savings Account (within the meaning of Chapter 2A of Part 30), contribution to a PEPP (within the meaning of Chapter 2D of Part 30) or other like benefit to be given on the death or retirement of the director or employee.”.
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(2)Section 787E of the Principal Act is amended— (a) in subsection (1), by the deletion of “, or deemed in accordance with subsection (2) to have been made by,”, and (b) by the deletion of subsection (2).
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(3)Section 897A of the Principal Act is amended, in subsection (1), in the definition of “PRSA employer contribution”, by the substitution of “section 787J(2)” for “section 787E(2) ”.
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(4)Section 985A of the Principal Act is amended, in subsection (1), in subparagraph (i) of paragraph (a), by the deletion of “, other than a contribution to a PRSA (within the meaning of Chapter 2A of Part 30),”.
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Amendment of Schedule 13 to Principal Act (accountable persons for purposes of Chapter 1 of Part 18) 23. (1) Schedule 13 to the Principal Act is amended— (a) by the substitution of the following paragraph for paragraph 26: “26. A designated institution of higher education within the meaning of section 53
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(1)of the Higher Education Authority Act 2022 .”, (b) by the deletion of paragraph 80, (c) by the insertion of the following paragraphs: “208. Approved Housing Bodies Regulatory Authority.
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209.The Land Development Agency.”, and (d) by the insertion of the following paragraph: “211. Royal Irish Academy.”.
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(2)Paragraphs (a) and (d) of subsection (1) shall come into operation on such day as the Minister for Finance may by order appoint.
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(3)An order under subsection (2) may, if the order so provides, have retrospective effect but shall not have retrospective effect to any date earlier than the date of the coming into operation of section 53
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(1)of the Higher Education Authority Act 2022 .
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Exemption of certain profits arising from production, maintenance and repair of certain musical instruments 24. The Principal Act is amended, in Chapter 1 of Part 7, by the insertion of the following section after section 216E: “216F. (1) In this section— ‘Commission Regulation (EU) No. 1407/2013’ means Commission Regulation (EU) No. 1407/2013 of 18 December 20137 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid; ‘early Irish harp’ means a harp instrument which is— (a) traditionally referred to in the Irish language as ‘cruit’ or ‘cláirseach’ by reason of its characteristics and shape, (b) traditionally played with the left hand above the right and with the fingernails, (c) strung with 29 or 30 metal strings, that emerge through eyelets set in a solid soundboard which has been hollowed out from behind, which are held in place along the harmonic curve by the tuning and bridge pins, without a semitone lever system, and (d) traditionally associated with a relevant musical practice; ‘Irish lever harp’ means a harp instrument which— (a) is traditionally referred to in the Irish language as ‘cruit’ or ‘cláirseach’ by reason of its characteristics and shape, (b) is traditionally played with the right hand above the left and with the tips or pads of the fingers, (c) does not have pedals of any kind, (d) is generally strung with not less than 34 but not more than 36 strings, (e) has levers on its strings which can raise the note of a string by a semitone, and (f) is traditionally associated with a relevant musical practice; ‘relevant activities’ means the production, maintenance or repair of relevant musical instruments; ‘relevant musical instrument’ means an early Irish harp, an Irish lever harp or uilleann pipes; ‘relevant musical practice’ means— (a) the practice of uilleann piping, as inscribed by the United Nations Educational, Scientific and Cultural Organization on the Representative List of the Intangible Cultural Heritage of Humanity pursuant to Decision of the Intergovernmental Committee: 12.COM 11.B.16 of 7 December 2017, or (b) the practice of Irish harping, as inscribed by the United Nations Educational, Scientific and Cultural Organization on the Representative List of the Intangible Cultural Heritage of Humanity pursuant to Decision of the Intergovernmental Committee: 14.COM 10.B.18 of 12 December 2019; ‘relevant period’ means the years of assessment 2023, 2024 and 2025; ‘relevant person’ means— (a) in the case of early Irish harps and Irish lever harps, Harp Foundation Ireland Company Limited by Guarantee, a private company incorporated in the State with registration number 614434,
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(b) in the case of uilleann pipes, Na Píobairí Uilleann Cuideachta Faoi Theorainn Ráthaíochta, a private company incorporated in the State with registration number 242874, or (c) such other person with appropriate experience in relation to relevant musical instruments and relevant musical practice as the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media may designate in writing for the purposes of this section; ‘relevant profit’ means profits or gains from relevant activities; ‘uilleann pipes’ means a set of bagpipes which— (a) has air supplied by a bellows that is operated by the elbow, and (b) is traditionally associated with a relevant musical practice.
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(2)This section applies to an individual who has, in the relevant period, relevant profits chargeable to income tax under Schedule D.
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(3)(a) An individual to whom this section applies, and who duly makes a claim to the Revenue Commissioners in that behalf, shall, subject to paragraph (b), be entitled to have relevant profits arising to him or her disregarded during the relevant period for the purposes of the Income Tax Acts. (b) The amount of relevant profits which an individual shall be entitled to have disregarded for the purposes of the Income Tax Acts by virtue of paragraph (a) shall not exceed €20,000 in any year of assessment. (c) The relief provided by this section may be given by repayment or otherwise.
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(4)As respects the making of a return of income (being a return which a chargeable person, within the meaning of Part 41A, is required to deliver under Chapter 3 of that Part), the Tax Acts shall apply— (a) as if subsection (3) had not been enacted, (b) notwithstanding anything to the contrary in Part 41A, as if the individual to whom relevant profits arise for any year of assessment were, if such person would not otherwise be, a chargeable person (within the meaning of Part 41A) for that chargeable period, (c) where an individual to whom relevant profits arise for any year of assessment is an individual to whom a notice under section 959N has been issued, as if such a notice had not been issued, and (d) in so far as those Acts relate to the keeping of records (within the meaning of section 886) and the making available of such records for inspection, as if such profits or gains were chargeable to income tax.
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(5)Where an individual to whom this section applies carries on a trade only part of the activities of which are relevant activities, then, for the purposes of this section, the profits of that trade shall be apportioned, on a just and reasonable basis, between those that are relevant profits and those that are not.
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(6)Notwithstanding anything to the contrary in section 851A, where any question arises as to whether an instrument is a relevant musical instrument for the purposes of this section, the Revenue Commissioners may consult with a relevant person.
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(7)(a) Where an individual to whom this section applies constitutes a single undertaking within the meaning of Commission Regulation (EU) No. 1407/2013, any relief provided by this section shall be available only insofar as it does not exceed the ceiling of aid laid down in Commission Regulation (EU) No. 1407/2013. (b) An individual who avails of relief provided by this section shall be liable for the payment of any income tax in excess of the ceiling laid down as referred to in paragraph (a). (c) An individual referred to in paragraph (a) shall— (i) provide such information as may be reasonably required by the Revenue Commissioners for the purposes of ensuring compliance by the individual with Commission Regulation (EU) No. 1407/2013, and (ii) keep a record of any other information the Revenue Commissioners may deem to be necessary to ensure compliance by the individual with Commission Regulation (EU) No. 1407/2013. (d) Notwithstanding any obligation to maintain secrecy or any other restriction on the disclosure of information imposed by or under statute or otherwise, the Revenue Commissioners, or any other officer authorised by them for the purposes of this subsection, may— (i) disclose to any board established by statute, any other public or local authority or any other agency of the State, information relating to the amount of relief claimed by a person under this section, being information, which is required by the relevant board, authority or agency concerned for the purpose of ensuring that the ceiling of aid in Commission Regulation (EU) No. 1407/2013 is not exceeded, and (ii) provide to the European Commission such information as may be requested by the European Commission in accordance with Article 6 of Commission Regulation (EU) No. 1407/2013.”.
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Chapter 4
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Income Tax, Corporation Tax and Capital Gains Tax Amendment of Chapter 13 of Part 10 of Principal Act (Living City Initiative) 25. The Principal Act is amended— (a) in section 372AAA, in the definition of “qualifying period”, by the substitution of “31 December 2027” for “31 December 2022”, (b) in section 372AAB— (i) by the substitution of the following subsection for subsection (2): “(2) (a) Where an individual, having duly made a claim, proves to have incurred qualifying expenditure on a qualifying premises in a year of assessment before the year of assessment 2023, the individual is entitled, for the year of assessment in which the expenditure was incurred and for any of the 9 subsequent years of assessment in which the qualifying premises is his or her only or main residence, to have a deduction made from his or her total income of an amount equal to 10 per cent of the amount of that expenditure. (b) Where an individual, having duly made a claim, proves to have incurred qualifying expenditure on a qualifying premises in the year of assessment 2023 or any subsequent year, the individual is entitled, subject to subsection (11), for the year of assessment in which expenditure was incurred and for any of the 6 subsequent years of assessment in which the qualifying premises is his or her only or main residence, to have a deduction made from his or her total income of an amount equal to— (i) 15 per cent of that expenditure incurred for each of the first 6 years of assessment, and (ii) 10 per cent of that expenditure for the final year of assessment.”, and (ii) by the insertion of the following subsection after subsection (10): “(11) (a) Where in a year of assessment an individual is entitled to a deduction under subsection (2)(b), in respect of which a deduction has not been wholly given in that year of assessment, the individual may claim that any portion of the deduction which has not been given shall be carried forward and, in so far as may be, deducted from his or her total income in subsequent years of assessment in which the qualifying premises remains as his or her only or main residence. (b) Subject to paragraph (c), any deduction under this subsection shall be given as far as possible from the assessment for the first and subsequent year of assessment and, in so far as it cannot be so given, from the assessment for the next year of assessment and so on. (c) No deduction shall be allowed under this subsection for a year of assessment commencing 10 or more years after the year of assessment in which a claim was first made under subsection (2)(b).”,
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and (c) in section 372AAD(1), in the definition of “relevant qualifying period”, by the substitution of “31 December 2027” for “31 December 2022”.
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Amendment of section 757 of Principal Act (charges on capital sums received for sale of patent rights) 26. Section 757 of the Principal Act is amended— (a) by the insertion of the following subsection after subsection (4): “(4A) (a) This subsection shall apply where— (i) there is a sale of patent rights that constitutes a disposal for the purposes of the Capital Gains Tax Acts, and (ii) the person selling the patent rights would be chargeable to capital gains tax in respect of that sale but for the net proceeds of the sale being excluded from the computation of the gain accruing on that disposal by virtue of section 551. (b) Where, but for the application of this section, section 617 would apply to a sale referred to in paragraph (a), then— (i) section 617 and Chapter 1 of Part 20 and Chapter 2 of Part 9, in so far as those Chapters relate to section 617, shall apply for the purposes of a charge to tax under this section as those provisions apply for the purposes of the Capital Gains Tax Acts, with any necessary modifications, and (ii) in applying section 617 to a sale referred to in paragraph (a), references in this section to the capital sum received for the sale of patent rights for the purposes of this section shall be read as references to the consideration referred to in section 617(1).”, and (b) by the insertion of the following subsection after subsection (5): “(6) (a) This section shall not apply to a sale which results in the purchaser being entitled to have their title as applicant, or co-applicant, for the patent, or proprietor, or co-proprietor, of the patent, registered in the Register of Patents under the Patents Act 1992 or in accordance with the analogous law of another jurisdiction, or being absolutely entitled as against the applicant, or co-applicant, for the patent, or proprietor, or co-proprietor, of the patent. (b) In this section, ‘applicant’ and ‘proprietor of the patent’ shall have the same meaning, respectively, as they have in the Patents Act 1992 and ‘co-applicant’ and ‘co-proprietor’ shall be construed accordingly.”.
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Amendment of Chapter 2 of Part 29 of Principal Act (scientific and certain other research) 27. (1) Section 766 of the Principal Act is amended— (a) in subsection (1)— (i) in paragraph (a), by the substitution of “In this section and in section 766C—” for “In this section—”, (ii) in paragraph (b)— (I) by the substitution of “For the purposes of this section and section 766C—” for “For the purposes of this section—”, and (II) in subparagraph (vi)— (A) in subclause (A), by the substitution of “trade,” for “trade, and”, (B) in subclause (B), by the substitution of “trade is reduced, and” for “trade is reduced;”, and (C) by the insertion of the following subclause after subclause (B): “(C) for the purposes of section 766C(1), as it would if it was incurred in the first accounting period which commenced on or after the time the company begins to trade;”, and (iii) by the deletion of paragraph (c), (b) by the insertion of the following subsection after subsection (4C): “(4D) Where, in respect of a claim made in respect of an accounting period that commenced before 1 January 2022, an amount is due to be paid as— (a) a second instalment under subsection (4B)(b)(ii), or (b) a last instalment under subsection (4B)(b)(iii), in an accounting period that commences on or after 1 January 2022 (in this subsection referred to as the ‘second-mentioned accounting period’), the company may, notwithstanding subsection (5), within 12 months of the end of the second-mentioned accounting period, make a claim in the return filed under Part 41A to have the excess paid to the company by the Revenue Commissioners, notwithstanding the restrictions set out in subparagraphs (ii)(II) and (iii)(II) of subsection (4B) in relation to the period before the expiry of which the Revenue Commissioners may not make a payment of the second or last instalment, as the case may be.”, (c) in subsection (6)(a), by the substitution of “for the purposes of this section and section 766C” for “for the purposes of this section”, (d) in subsection (7)(a)— (i) by the substitution of “under this section or section 766A, 766C or 766D—” for “under this section or section 766A—”, and (ii) in subparagraph (ii), by the substitution of “under this section or section 766A, 766C or 766D—” for “under this section, or under section 766A—”, (e) in subsection (7B)— (i) in paragraph (b)— (I) in subparagraph (i)— (A) by the deletion of “or pursuant to section 766C(4)”, and (B) by the deletion of “or an amount pursuant to section 766C(4)”, and (II) in subparagraph (ii), by the substitution of “Any claim in respect of a specified amount that remains unpaid shall be deemed” for “Any claim in respect of subsection (4B), section 766A(4B) or pursuant to section 766C(4), as the case may be, that remains unpaid, shall be deemed”,
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and (ii) in paragraph (c), by the substitution of the following subparagraph for subparagraph (i): “(i) Subject to subparagraph (ii), where a company makes a claim in respect of a specified amount and it is subsequently found that the claim is not as authorised by this section or by section 766A, as the case may be, then the company may be charged to tax under Case IV of Schedule D for the accounting period in respect of which the payment was made or the amount surrendered, as the case may be, in an amount equal to 4 times so much of the specified amount as is not so authorised.”, and (f) by the insertion of the following subsection after subsection (8): “(9) (a) A claim shall not be made under subsection (2) or (2A) in respect of expenditure on research and development incurred in an accounting period that commences on or after 1 January 2023. (b) A company may, in respect of expenditure on research and development incurred in an accounting period make a claim under this section or section 766C.”.
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(2)Section 766A of the Principal Act is amended— (a) in subsection (1)— (i) in paragraph (a), by the substitution of “In this section and in section 766D—” for “In this section—”, and (ii) in paragraph (b), by the substitution of “For the purposes of this section and section 766D—” for “For the purposes of this section—”, (b) by the insertion of the following subsection after subsection (4B): “(4C) Where, in respect of a claim made in respect of an accounting period that commenced before 1 January 2022, an amount is due to be paid as— (a) a second instalment under subsection (4B)(b)(ii), or (b) a last instalment under subsection (4B)(b)(iii), in an accounting period that commences on or after 1 January 2022 (in this subsection referred to as the ‘second-mentioned accounting period’), the company may, notwithstanding subsection (5), within 12 months of the end of the second-mentioned accounting period, make a claim in the return filed under Part 41A to have such excess paid to the company by the Revenue Commissioners, notwithstanding the restrictions set out in subparagraphs (ii)(II) and (iii)(II) of subsection (4B) in relation to the period before the expiry of which the Revenue Commissioners may not make a payment of the second or last instalment, as the case may be.”, and (c) by the insertion of the following subsection after subsection (8): “(9) (a) A claim shall not be made under subsection (2) in respect of expenditure on research and development incurred in an accounting period that commences on or after 1 January 2023. (b) A company may, in respect of expenditure on research and development incurred in an accounting period make a claim under this section or section 766D.”.
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(3)Section 766B of the Principal Act is amended by the insertion of the following subsection after subsection (3): “(4) This section shall not apply in respect of a claim made under section 766(4B) or 766A(4B) in a return the specified return date (within the meaning of Part 41A) of which is on or after 23 September 2023.”.
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(4)The Principal Act is amended by the insertion of the following sections after section 766B: “Research and development corporation tax credit 766C. (1) Subject to subsection (2), where in respect of any accounting period a company makes a claim in that behalf, it shall be entitled to an amount (in this section referred to as ‘the credit’) equal to 25 per cent of the qualifying expenditure attributable to the company as is referable to the accounting period.
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(2)(a) This subsection applies in respect of a company (in this subsection referred to as a ‘surrendering company’) that— (i) in respect of any accounting period claims the credit in accordance with this section, and (ii) specifies that the credit, or any portion of the credit, shall be treated as an overpayment of tax under subsection (7)(a), where the amount specified by the company under subparagraph (ii) is in excess of the company’s liabilities (within the meaning of section 960H), and the difference between that amount so specified and those liabilities shall be referred to in this subsection as ‘the excess’. (b) A surrendering company may make a claim under paragraph (c) in respect of the amount of the excess. (c) A surrendering company may, on making a claim in that behalf, surrender all or part of the excess, to one or such number of key employees as the surrendering company may specify but the aggregate of such amounts, attributable to such employees, may not exceed the amount so surrendered. (d) The part of that amount of the credit that may be surrendered by the surrendering company as referred to in paragraph (c) may not exceed the corporation tax payable by that surrendering company in respect of that accounting period. (e) A claim in accordance with this subsection shall be made in such form as the Revenue Commissioners may prescribe and the surrendering company shall notify the key employee, in writing, of any amount surrendered to that employee.
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(3)Where in respect of any accounting period a company makes a claim under subsections (1) and (2) and the amount so claimed or surrendered, or both, as the case may be, is subsequently found not to have been as is authorised by this section, then, the amount which is not so authorised shall be first attributable to a claim under subsection (1) in priority to a claim under subsection (2).
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(4)Where in respect of an accounting period, a company makes a claim under subsection (2) and it is subsequently found that the amount surrendered in accordance with that claim (hereafter in this section referred to as the ‘initial amount’) is not as authorised by this section, then, in relation to each key employee, the amount surrendered, which is authorised by this section, shall be an amount (hereafter in this section referred to as the ‘relevant authorised amount’) determined by the formula— where— A is the portion of the initial amount attributable to that key employee in accordance with the claim under subsection (2), B is the aggregate amount that may be surrendered by the company in respect of that accounting period as is authorised by this section, and C is the initial amount, and the company shall notify the key employee in writing of the relevant authorised amount.
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(5)For the purposes of subsection (1)— (a) qualifying expenditure attributable to a company in relation to a relevant period shall be so much of the amount of qualifying group expenditure on research and development in the relevant period as is attributed to the company in the manner specified in a notice made jointly in writing by the qualified companies that are members of the group, but where no such notice is given means an amount determined by the formula— where— Q is the qualifying group expenditure on research and development in the relevant period, C is the amount of expenditure on research and development incurred by the company in the relevant period at a time when the company is a member of the group, and G is the group expenditure on research and development in the relevant period, (b) where a relevant period coincides with an accounting period of a company, the amount of qualifying expenditure on research and development attributable to the company as is referable to the accounting period of the company shall be the full amount of that expenditure, and (c) where the relevant period does not coincide with an accounting period of the company— (i) the qualifying expenditure on research and development attributable to the company shall be apportioned to the accounting periods which fall wholly or partly in the relevant period, and (ii) the amount so apportioned to an accounting period shall be treated as the amount of qualifying expenditure on research and development attributable to the company as is referable to the accounting period of the company.
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(6)Where, in an accounting period, a company makes a claim in respect of the credit under subsection (1), the amount so claimed shall be payable in 3 annual instalments as follows: (a) the first instalment shall equal— (i) €25,000, or if lower, the amount of the credit claimed, or (ii) 50 per cent of the amount of the credit claimed, whichever is the greater; (b) the second instalment, if any, shall be an amount determined by the formula— (A - B) X 3/5 where— A is the amount of the credit claimed, and B is the amount of the first instalment under paragraph (a); (c) the third instalment, if any, shall be an amount determined by the formula— A - (B + C) where— A is the amount of the credit claimed, B is the amount of the first instalment under paragraph (a), and C is the amount of the second instalment under paragraph (b).
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(7)The company shall specify in respect of each instalment referred to in subsection (6) whether such amounts, or any portion of such amounts, are to be— (a) treated as an overpayment of tax, for the purposes of section 960H, or (b) paid to the company by the Revenue Commissioners.
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(8)The credit, if any, arising to a company in accordance with this section shall not be income of the company or another company for any tax purpose.
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(9)(a) Any claim under this section shall be made within 12 months from the end of the accounting period in which the expenditure, giving rise to the claim, is incurred and shall be made in the return that the company is required to file, under Part 41A, in respect of that accounting period. (b) The company shall, when making a claim in accordance with paragraph (a), provide details of— (i) the amount of the expenditure attributable to research and development activities incurred by the company during the accounting period concerned in respect of— (I) machinery or plant as referred to in section 766(1A)(a), and (II) emoluments of the employees carrying on qualifying research and development activities, and (ii) the sum of the remaining qualifying expenditure incurred by the company during the accounting period concerned. (c) In this subsection, ‘emoluments’ and ‘employees’ have the meanings given to them by section 983.
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(10)(a) Any claim in respect of the credit under subsection (1) (whether the amount of the credit is to be treated as an overpayment of tax under subsection (7)(a) or paid to the company under subsection (7)(b)) shall, for the purposes of 851A and 851B, Chapter 4 of Part 38 and Part 47, be treated as a claim for a credit and the amount so claimed shall be treated as an amount of tax refundable. (b) In respect of any claim in respect of the credit that remains unpaid, for the purposes of determining an amount in accordance with subsections (3) or (4) of section 1077F, a reference to an amount of tax that would have been payable for the relevant period by the person concerned shall be read as if it were a reference to the amount so claimed. (c) (i) Subject to subparagraph (ii), where a company makes a claim in respect of the credit and it is subsequently found that the claim is not as authorised by this section then the company may be charged to tax under Case IV of Schedule D for the accounting period in respect of which the payment was made or the amount surrendered, as the case may be, in an amount equal to 4 times so much of the amount of the credit as is not so authorised. (ii) An amount chargeable to tax under this paragraph shall be treated— (I) as income against which no loss, deficit, expense or allowance may be set off, and (II) as not forming part of the income of the company for the purposes of calculating a surcharge under section 440. (d) Where in accordance with paragraph (c) an assessment is made the amount so charged shall, for the purposes of section 1080, be deemed to be tax due and payable and shall carry interest as determined in accordance with subsection (2)(c) of section 1080 as if a reference to the date when the tax became due and payable were a reference to the date the amount was paid or offset, under section 960H, by the Revenue Commissioners.
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(11)Where a claim in respect of the credit under this section is made the amount of the credit shall be paid or offset in full, in the manner specified by the company under subsection (7), by the Revenue Commissioners within 48 months from when a valid claim is made and where a valid claim has been made— (a) the first instalment shall be payable on the making of the return referred to in subsection (9), (b) the second instalment shall be payable— (i) where the accounting period (in this subsection referred to as the ‘first-mentioned accounting period’) immediately succeeding the accounting period in respect of which the claim was made is for a period of 12 months, on the filing of the return that the company is required to file under Part 41A for the first-mentioned accounting period, or (ii) in all other cases, 12 months after the specified return date, within the meaning of Part 41A, for the return referred to in subsection (9), and (c) the third instalment shall be payable— (i) where the accounting period (in this subsection referred to as the ‘second-mentioned accounting period’) immediately succeeding the first-mentioned accounting period is for a period of 12 months, on the filing of the return that the company is required to file under Part 41A for the second-mentioned accounting period, or (ii) in all other cases, 24 months after the specified return date, within the meaning of Part 41A, for the return referred to in subsection (9).
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(12)No amount of the credit shall be paid or offset under subsection (11) unless a valid claim has been made to the Revenue Commissioners for that purpose.
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(13)Where a company specifies that the first instalment, under subsection (6)(a), is to be treated, under subsection (7)(a), as an overpayment of tax, and where that amount is, under section 960H, offset in whole or in part against the company’s corporation tax payable (within the meaning of Part 41A) for the accounting period, then, for the purposes of calculating the amount of preliminary tax due in respect of that accounting period and the subsequent accounting period under section 959AR or 959AS, as the case may be, the amount of corporation tax payable by the company for that accounting period shall be reduced by the amount so offset.
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(14)In this section, ‘valid claim’ means a claim in relation to the credit which is made under and in accordance with this section and in respect of which all information which the Revenue Commissioners may reasonably require to enable them determine if, and to what extent, the credit is due to a company in respect of an accounting period, has been furnished by that company.
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(15)In this section, a reference to an amount payable, in so far as the reference is in respect of the credit, shall be construed as a reference to an amount to be offset under section 960H pursuant to subsection (7)(a) or to be paid under subsection (7)(b), as the case may be.
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Research and development corporation tax credit: expenditure on buildings or structures 766D. (1) Where in an accounting period a qualified company incurs relevant expenditure and the company makes a claim on that behalf it shall be entitled to an amount (in this section referred to as ‘the credit’) equal to 25 per cent of the specified relevant expenditure.
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(2)(a) This subsection applies in respect of a qualified company (in this subsection referred to as a ‘surrendering company’) that— (i) in respect of any accounting period claims the credit in accordance with this section, (ii) specifies that the credit, or any portion of that credit, shall be treated as an overpayment of tax under subsection (6)(a), and (iii) is a member of a group of companies, where the amount specified under subparagraph (ii) is in excess of that company’s liabilities (within the meaning of section 960H), and the difference between that amount so specified and those liabilities shall be referred to in this subsection as ‘the excess’. (b) A surrendering company may make a claim under paragraph (c) in respect of the amount of the excess. (c) A surrendering company may, on making a claim in that behalf, specify that all or part of the excess is to be treated as an amount of an overpayment (within the meaning of section 960H) by another company which is a member of that group for that other company’s corresponding accounting period. (d) A claim under paragraph (c) shall be made in such form as the Revenue Commissioners may prescribe.
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(3)Where— (a) in an accounting period a company incurs relevant expenditure on a building or structure, (b) in relation to that expenditure the credit has been claimed under this section, and (c) at any time in the period of 10 years commencing at the beginning of the accounting period referred to in paragraph (a) the building or structure is sold or ceases to be used by the company for the purpose of research and development activities or for the purpose of the same trade that was carried on by the company at the beginning of the specified relevant period, in connection with which the research and development activities were carried on, then the company shall be charged to tax under Case IV of Schedule D for the accounting period in which the building or structure is sold or ceases to be used for the purpose of research and development activities or for the purpose of the trade, in an amount equal to 4 times the amount claimed.
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(4)(a) Where expenditure is incurred by a company on a building or structure and the building or structure will not be used by the company wholly and exclusively for the purposes of research and development, the proportion of the use of the building or the amount of the expenditure attributable to research and development shall be such portion of the use of the building or the expenditure as is just and reasonable. (b) Where, at any time, any apportionment referred to in paragraph (a), or a further apportionment made under this paragraph, ceases to be just and reasonable, then— (i) such further apportionment shall be made at that time as is just and reasonable, (ii) any such further apportionment shall supersede any earlier apportionment, and (iii) any such adjustments, assessments or repayments of tax shall be made as are necessary to give effect to any apportionment under this subsection.
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(5)Where, in an accounting period, a company makes a claim in respect of the credit under subsection (1) the amount so claimed shall be payable in 3 annual instalments as follows: (a) the first instalment shall equal 50 per cent of the amount of the credit claimed; (b) the second instalment, if any, shall be an amount determined by the formula— (A - B) X 3/5 where— A is the amount of the credit claimed, and B is the amount of the first instalment under paragraph (a); (c) the third instalment, if any, shall be an amount determined by the formula— A - (B + C) where— A is the amount of the credit claimed, B is the amount of the first instalment under paragraph (a), and C is the amount of the second instalment under paragraph (b).
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(6)The company shall specify in respect of each instalment referred to in subsection (5) whether such amounts, or any portion of such amounts, are to be— (a) treated as an overpayment of tax, for the purposes of section 960H, or (b) paid to the company by the Revenue Commissioners.
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(7)The credit, if any, arising to a company in accordance with this section shall not be income of the company or another company for any tax purpose.
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(8)Any claim under this section shall be made within 12 months from the end of the accounting period in which the expenditure, giving rise to the claim, is incurred and shall be made in the return that the company is required to file, under Part 41A, in respect of that accounting period.
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(9)(a) Any claim in respect of the credit under subsection (1) (whether the amount of the credit is to be treated as an overpayment of tax under subsection (6)(a) or paid to the company under subsection (6)(b)) shall, for the purposes of sections 851A and 851B, Chapter 4 of Part 38 and Part 47, be treated as a claim for a credit and the amount so claimed shall be treated as an amount of tax refundable. (b) In respect of a claim in respect of the credit that remains unpaid, for the purposes of determining an amount in accordance with subsections (3) or (4) of section 1077F, a reference to an amount of tax that would have been payable for the relevant period by the person concerned shall be read as if it were a reference to the amount so claimed. (c) (i) Subject to subparagraph (ii), where a company makes a claim in respect of the credit and it is subsequently found that the claim is not as authorised by this section then the company may be charged to tax under Case IV of Schedule D for the accounting period in respect of which the payment was made or the amount surrendered, as the case may be, in an amount equal to 4 times so much of the amount of the credit as is not so authorised. (ii) An amount chargeable to tax under this paragraph shall be treated— (I) as income against which no loss, deficit, expense or allowance may be set off, and (II) as not forming part of the income of the company for the purposes of calculating a surcharge under section 440. (d) Where in accordance with paragraph (c) an assessment is made the amount so charged shall, for the purposes of section 1080, be deemed to be tax due and payable and shall carry interest as determined in accordance with subsection (2)(c) of section 1080 as if a reference to the date when the tax became due and payable were a reference to the date the amount was paid or offset, under section 960H, by the Revenue Commissioners.
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(10)Where a claim in respect of the credit under this section is made the amount of the credit shall be paid or offset in full, in the manner specified by the company under subsection (6), by the Revenue Commissioners within 48 months from when a valid claim is made and where a valid claim has been made— (a) the first instalment shall be payable on the making of the return referred to in subsection (8), (b) the second instalment shall be payable— (i) where the accounting period (in this subsection referred to as the ‘first-mentioned accounting period’) immediately succeeding the accounting period in respect of which the claim was made is for a period of 12 months, on the filing of the return that the company is required to file under Part 41A for the first-mentioned accounting period, or (ii) in all other cases, 12 months after the specified return date, within the meaning of Part 41A, for the return referred to in subsection (8), and (c) the third instalment shall be payable— (i) where the accounting period (in this subsection referred to as the ‘second-mentioned accounting period’) immediately succeeding the first-mentioned accounting period is for a period of 12 months, on the filing of the return that the company is required to file under Part 41A for the second-mentioned accounting period, or (ii) in all other cases, 24 months after the specified return date, within the meaning of Part 41A, for the return referred to in subsection (8).
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(11)No amount of the credit shall be paid or offset under subsection (10) unless a valid claim has been made to the Revenue Commissioners for that purpose.
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(12)Where a company specifies that the first instalment, under subsection (5)(a), is to be treated, under subsection (6)(a), as an overpayment of tax, and where that amount is, under section 960H, offset in whole or in part against the company’s corporation tax payable (within the meaning of Part 41A) for the accounting period, then, for the purposes of calculating the amount of preliminary tax due in respect of that accounting period and the subsequent accounting period under section 959AR or 959AS, as the case may be, the amount of corporation tax payable by the company for that accounting period shall be reduced by the amount so offset.
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(13)In this section, ‘valid claim’ means a claim in relation to the credit which is made under and in accordance with this section and in respect of which all information which the Revenue Commissioners may reasonably require to enable them determine if, and to what extent, the credit is due to a company in respect of an accounting period, has been furnished by that company.
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(14)In this section, a reference to an amount payable, in so far as the reference is in respect of the credit, shall be construed as a reference to any amount to be offset under section 960H pursuant to subsection (6)(a) or to be paid under subsection (6)(b), as the case may be.”.
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(5)Subsection (4) applies in respect of accounting periods the specified return date (within the meaning of Part 41A) of which is on or after 23 September 2023.
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(6)
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Section 25
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of the Finance Act 2019 is amended by the deletion of subsections (2)(c)(ii), (4)(b) and (5).
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Amendment of section 472D of Principal Act (relief for key employees engaged in research and development activities) 28. (1) Section 472D of the Principal Act is amended— (a) in subsection (1)— (i) in the definition of “key employee”, by the substitution of “under section 766(2) or 766C(1),” for “under section 766(2),”, and (ii) in the definition of “relevant employer”, by the substitution of “under section 766(2) or 766C(1)” for “under section 766(2)”, (b) in subsection (2)(a), by the substitution of “under section 766(2A) or section 766C(2)” for “under section 766(2A)”, (c) in subsection (3)(a), by the substitution of “under section 766(2A) or section 766C(2)” for “under section 766(2A)”, (d) in subsection (4), by the substitution of “under section 766(2A) or section 766C(2)” for “under section 766(2A)”, in each place where it occurs, and (e) in subsection (5), by the substitution of “under section 766(2A) or section 766C(2)” for “under section 766(2A)”.
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(2)Subsection (1) shall apply in respect of accounting periods of the relevant employer (within the meaning of section 766C of the Principal Act) commencing on or after 1 January 2022.
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Amendment to Chapter 2 of Part 23 of Principal Act (farming: relief for increase in stock values) 29. (1) The Principal Act is amended— (a) in section 667B— (i) in subsection (5)(b), by the substitution of “30 June 2023” for “31 December 2022”, and (ii) in subsection (5B), by the deletion of “as provided for by Article 18 of Commission Regulation (EU) No. 702/2014 of 25 June 2014 or that Regulation as may be revised from time to time”, (b) in section 667C— (i) in subsection (2), by the substitution of the following paragraph for paragraph (b): “(b) the following was substituted for subsection (4)— ‘(4) (a) A deduction shall not be allowed under this section in computing a company’s trading income for any accounting period which ends after 30 June 2023. (b) Any deduction allowed by virtue of this section in computing the profits or gains of a trade of farming for an accounting period of a person other than a company shall not apply for any purpose of the Income Tax Acts for any year of assessment later than the year 2023.’,”, and (ii) in subsection (4), by the substitution of “30 June 2023” for “31 December 2022”, and (c) in section 667D(8)(b), by the deletion of “as provided for by Article 18 of Commission Regulation (EU) No. 702/2014 of 25 June 2014 or that Regulation as may be revised from time to time”.
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(2)Subsection (1) shall come into operation on such day or days as the Minister for Finance may appoint by order.
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Farming: accelerated allowances for capital expenditure on slurry storage 30. (1) The Principal Act is amended— (a) in Chapter 1 of Part 23, by the insertion of the following section after section 658: “Farming: accelerated allowances for capital expenditure on slurry storage 658A. (1) In this section— ‘qualifying capital items’ means the items specified in column (1) of the Table in Part 2 of Schedule 35A meeting the description specified in column (2) of that Table opposite the reference to those items in column (1); ‘qualifying expenditure’ means capital expenditure incurred during the relevant period on the provision or construction, as the case may be, of qualifying capital items; ‘relevant period’ means the period commencing on 1 January 2023 and ending on 30 June 2023; ‘relevant regulation’ means Article 7 of the European Union (Good Agricultural Practice for Protection of Waters) Regulations 2022 ( S.I. No. 113 of 2022 ); ‘relevant tax’, in relation to a person, means— (a) where the person is a company, any corporation tax, and (b) where the person is not a company, any contributions paid under the Social Welfare Consolidation Act 2005 , income tax or universal social charge; ‘Rescuing and Restructuring Guidelines’ means the Communication from the Commission on Guidelines on State aid for rescuing and restructuring non-financial undertakings in difficulty8 ; ‘undertaking in difficulty’ shall be construed in accordance with section 2.2 of the Rescuing and Restructuring Guidelines.
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(2)Where a person incurs qualifying expenditure for the purpose of a trade of farming land occupied by that person, then, where for any chargeable period— (a) a writing down allowance is to be made under section 658— (i) subsection (2) of that section shall apply as if— (I) the reference in paragraph (a) of that subsection to 7 years were a reference to 2 years, and (II) the following were substituted for paragraph (b) of that subsection: ‘(b) The farm buildings allowance to be made under this subsection shall be 50 per cent of the capital expenditure referred to in paragraph (a).’, and (ii) subsection (12) of that section shall apply as if ‘Chapter 1 or 2 of Part 9’ were substituted for ‘Chapter 1 of Part 9’, or (b) a wear and tear allowance is to be made under section 284, subsection (2) of that section shall apply as if the reference in paragraph (ad) of that subsection to 12.5 per cent were a reference to 50 per cent.
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(3)For the purposes only of determining, in relation to a claim for an allowance under section 658 as applied by subsection (2)(a), whether and to what extent capital expenditure incurred on qualifying capital items is incurred in the relevant period, only such an amount of that capital expenditure as is properly attributable to work on the construction of the qualifying capital items concerned actually carried out during that period shall (notwithstanding any other provision of the Tax Acts as to the time when any capital expenditure is or is to be treated as incurred) be treated as having been incurred in that period.
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(4)Subsection (2) shall not apply where the person concerned— (a) is, or is part of, an undertaking in difficulty, (b) is subject to an outstanding recovery order following a previous decision of the Commission of the European Union that declared an aid illegal and incompatible with the internal market, or (c) is, or is part of, an undertaking that is not a micro, small or medium-sized enterprise within the meaning of Commission Regulation (EU) No. 702/2014 of 25 June 20149 .
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(5)The aggregate amount of relief granted to a person under this section shall not exceed €500,000.
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(6)This subsection applies to a person in respect of a chargeable period where the aggregate of the amount of the relief granted under this section to the person in that chargeable period and in previous chargeable periods is greater than €60,000.
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(7)Notwithstanding section 851A, where subsection (6) applies to a person in respect of a chargeable period, the Revenue Commissioners may disclose the following information in respect of the year in which the chargeable period ends: (a) the name of the person; (b) the sector of activity at NACE group level, within the meaning of Regulation (EC) No. 1893/2006 of the European Parliament and of the Council of 20 December 200610 , as amended by Regulation (EC) No. 295/2008 of the European Parliament and of the Council of 11 March 200811 , Regulation (EU) No. 70/2012 of the European Parliament and of the Council of 18 January 201212 and Regulation (EU) 2019/1243 of the European Parliament and of the Council of 20 June 201913 ; (c) the territorial unit, within the meaning of the NUTS Level 2 classification specified in Annex 1 to Regulation (EC) No. 1059/2003 of the European Parliament and of the Council of 26 May 200314 , as amended by Regulation (EC) No. 1888/2005 of the European Parliament and of the Council of 26 October 200515 , Commission Regulation (EC) No. 105/2007 of 1 February 200716 , Regulation (EC) No. 176/2008 of the European Parliament and of the Council of 20 February 200817 , Regulation (EC) No. 1137/2008 of the European Parliament and of the Council of 22 October 200818 , Commission Regulation (EU) No. 31/2011 of 17 January 201119 , Council Regulation (EU) No. 517/2013 of 13 May 201320 , Commission Regulation (EU) No. 1319/2013 of 9 December 201321 , Commission Regulation (EU) No. 868/2014 of 8 August 201422 , Commission Regulation (EU) No. 2016/2066 of 21 November 201623 , Regulation (EU) 2017/2391 of the European Parliament and of the Council of 12 December 201724 and Commission Delegated Regulation (EU) 2019/1755 of 8 August 201925 , in which the person is located; (d) the year in which the relief is granted.
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(8)For the purposes of subsections (5) and (6), the amount of relief granted to a person in a chargeable period shall be the amount determined by the formula— R = A - B where— R is the amount of the relief granted to the person in the chargeable period, A is the amount of relevant tax that would be payable by the person for the chargeable period, but for subsection (2), and B is the amount of relevant tax payable by the person for that chargeable period.”, and (b) by the insertion of the following Schedule after Schedule 35: “SCHEDULE 35A Types and Descriptions of Slurry Storage Items for the Purposes of Section 658A
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PART 1
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Definition In this Schedule, ‘slurry’ means— (a) excreta produced by livestock while in a building or yard, and (b) a mixture of such excreta with rainwater, washings, or such other extraneous material or any combination of these.
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PART 2
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Items
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(1)Description
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(2)Floors and walls of animal housing Floors and walls of slurry collecting and storing buildings used to house livestock, built in accordance with the relevant specifications as may be approved from time to time by the Minister for Agriculture, Food and the Marine as required by the relevant regulation.
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Mass concrete tanks with roof or cover Slurry storage tank built in accordance with the relevant specifications as may be approved from time to time by the Minister for Agriculture, Food and the Marine as required by the relevant regulation. The tank must be covered.
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Precast concrete tanks with roof or cover Precast concrete tank built in accordance with the relevant specifications as may be approved from time to time by the Minister for Agriculture, Food and the Marine as required by the relevant regulation. The tank must be covered.
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Circular slurry stores with roof or cover Circular slurry tank built in accordance with the relevant specifications as may be approved from time to time by the Minister for Agriculture, Food and the Marine as required by the relevant regulation. The tank must be covered.
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Geo-membrane lined stores with roof or cover Geo-membrane lined slurry store built in accordance with the relevant specifications as may be approved from time to time by the Minister for Agriculture, Food and the Marine as required by the relevant regulation. The tank must be covered.
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Farmyard manure pit with roof or cover Structure for storage of high dry matter slurry built in accordance with the relevant specifications as may be approved from time to time by the Minister for Agriculture, Food and the Marine as required by the relevant regulation.
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Collecting yards Slurry collecting structure used for the holding of animals while they are waiting to be milked, built in accordance with the relevant specifications as may be approved from time to time by the Minister for Agriculture, Food and the Marine as required by the relevant regulation.
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Cattle enclosure yards Slurry collecting structure used for the holding of animals while they are waiting for handling, built in accordance with the relevant specifications as may be approved from time to time by the Minister for Agriculture, Food and the Marine as required by the relevant regulation.
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Automatic slurry scrapers A fixed device for the collection of slurry from the floor of an animal house for storage in a slurry store. The device will consist of a scraper blade that is either pulled or pushed along the floor of an animal house. The blade is usually driven by either a rope, chain or track.
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Simple slurry aeration system System for keeping stored slurry in a homogeneous pumpable state. The system works by pumping low pressure air through a valve system to outlet branches fixed to the base of the slurry store. Each outlet branch sequentially releases the air for a set period, with the rising air bubbles mixing and aerating the slurry. ”.
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(2)Subsection (1) shall come into operation on such day as the Minister for Finance may appoint by order.
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Amendment of section 97A of Principal Act (pre-letting expenditure in respect of vacant premises) 31. (1) Section 97A of the Principal Act is amended— (a) in subsection (1), in the definition of “vacant premises”, by the substitution of “6 months” for “12 months”, and (b) in subsection (4), by the substitution of “€10,000” for “€5,000”.
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(2)Subsection (1) shall apply in relation to a vacant premises (within the meaning of section 97A of the Principal Act) where the specified day (within the said meaning) falls on or after 1 January 2023.
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Deduction for retrofitting expenditure 32. The Principal Act is amended by the insertion of the following section after section 97A: “97B. (1) In this section— ‘Act of 2004’ means the Residential Tenancies Act 2004 ; ‘approved retrofitting grant’ means any of the following: (a) the grant commonly known as the Individual Energy Upgrade Grant; (b) the grant commonly known as the One Stop Shop Service; (c) any other grant administered by the Sustainable Energy Authority of Ireland and designated by order under subsection (2); ‘qualifying contractor’ means a person— (a) who has been issued with a tax clearance certificate in accordance with section 1095 and such tax clearance certificate has not been rescinded under subsection (3A) of that section, and (b) is either— (i) a person to whom section 530G or 530H applies, or (ii) in the case of a person who is not a subcontractor (within the meaning of Chapter 2 of Part 18), a person who satisfies the conditions specified in subsection (1) of section 530G or subsection (1) of 530H, other than the conditions specified in paragraphs (a) and (b) of either of those subsections; ‘qualifying expenditure’ means expenditure— (a) incurred by the person chargeable on qualifying works in the relevant period, and (b) in respect of which the person chargeable has received an approved retrofitting grant; ‘qualifying premises’ means a residential premises situated in the State— (a) owned by the person chargeable, (b) occupied by a tenant under a tenancy registered by the person chargeable under Part 7 of the Act of 2004, and (c) which continues to be subject to a tenancy throughout the period during which the qualifying works are carried out; ‘qualifying works’ means works carried out by a qualifying contractor on a qualifying premises during the relevant period with the objective of improving the energy efficiency of that premises; ‘relevant amount’, means the lesser of— (a) the qualifying expenditure, and (b) €10,000; ‘relevant period’ means the period beginning on 1 January 2023 and ending on 31 December 2025; ‘tenant’ has the same meaning as it has in the Act of 2004; ‘tenancy’ has the same meaning as it has in the Act of 2004; ‘the 2-year period’, in relation to a qualifying premises, means the 2 years immediately following the end of the year in which the qualifying works concerned are completed; ‘VAT registration number’, in relation to a person, means the registration number assigned to the person under the Value-Added Tax Consolidation Act 2010 .
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(2)The Revenue Commissioners may, by order, designate a grant for the purpose of paragraph (c) of the definition of ‘approved retrofitting grant’ in subsection (1), where they are satisfied that the grant is similar in nature and objective to a grant referred to in paragraph (a) or (b) of that definition or previously designated under this subsection.
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(3)Where the Sustainable Energy Authority of Ireland commences administering a grant similar in nature and objective to a grant— (a) referred to in paragraph (a) or (b) of the definition of ‘approved retrofitting grant’ in subsection (1), or (b) designated under subsection (2), it will advise the Revenue Commissioners accordingly.
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(4)Subject to subsections (5) and (6), where a person chargeable has incurred qualifying expenditure in a year of assessment, that person is entitled, in computing for the purposes of section 97(1) the amount of a surplus or deficiency in respect of the rent from the qualifying premises concerned for the year of assessment following that in which the qualifying expenditure is incurred, to a deduction equal to the relevant amount.
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(5)A person chargeable shall not be entitled to a deduction under subsection (4) in respect of more than two qualifying premises.
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(6)The maximum deduction available to a person chargeable under this section in respect of qualifying expenditure incurred on a qualifying premises during the relevant period shall not exceed the relevant amount.
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(7)This subsection applies where— (a) a deduction has been made in accordance with subsection (4) in respect of a qualifying premises, and (b) one or more of the following conditions are satisfied during the 2‑year period: (i) the person chargeable is in breach of their obligations under Part 3 of the Residential Tenancies Act 2004 in respect of a tenancy of the qualifying premises; (ii) the qualifying premises ceases to be subject to a tenancy; (iii) subsection (8) applies in respect of the qualifying premises, but subsection (9) does not apply in respect of the qualifying premises following the termination of the tenancy concerned.
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(8)This subsection applies in respect of a qualifying premises where— (a) a tenant terminates a tenancy of the qualifying premises, or (b) the person chargeable concerned issues a notice of termination of the tenancy of the qualifying premises on the ground that the tenant of the qualifying premises has failed to comply with any of his or her obligations in relation to the tenancy.
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(9)This subsection applies in respect of a qualifying premises where, following the termination of the tenancy concerned, either— (a) the qualifying premises is subject to a tenancy, or (b) all of the conditions specified in subsection (10) are satisfied in respect of the qualifying premises.
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(10)The conditions referred to in subsection (9)(b) are as follows: (a) the qualifying premises is being actively marketed for rent with a view to the person chargeable entering into a residential tenancy agreement with a willing tenant; (b) the rent sought for the qualifying premises does not exceed market rent; (c) there are no conditions attaching to the tenancy which are unreasonable or designed to impede or disrupt the negotiation of a tenancy agreement.
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(11)Where subsection (7) applies— (a) an amount equal to the deduction shall be deemed to be profits or gains of the person chargeable computed under section 97(1) in the year of assessment in which, as the case may be— (i) that person is in breach of Part 3 of the Residential Tenancies Act 2004, (ii) the premises concerned ceases to be subject to a tenancy, or (iii) the tenancy is terminated such that subsection (8) applies, and (b) assessments shall as necessary be made or amended to give effect to this subsection.
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(12)On making a claim under this section, the person chargeable shall provide the following to the Revenue Commissioners on their annual return of income: (a) the unique identification number assigned in accordance with section 27 of the Finance (Local Property Tax) Act 2012 for each qualifying premises on which qualifying works were carried out; (b) the Eircode for each such qualifying premises; (c) the amount of any approved retrofitting grant received in respect of each of the qualifying premises, and confirmation of the grant payment from the Sustainable Energy Authority of Ireland; (d) the amount of the qualifying expenditure for each of the qualifying premises; (e) the relevant amount for each of the qualifying premises; (f) confirmation that each of the premises is a qualifying premises for the purposes of this section; (g) the name, business address (including the Eircode), tax reference number and VAT registration number of the qualifying contractor; (h) such other information as the Revenue Commissioners may require.
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(13)Where relief is given under this section, no relief, deduction or credit under any other provision of the Tax Acts or the Capital Gains Tax Acts shall be given or allowed in respect of the qualifying expenditure.
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(14)For the purposes of this section, expenditure shall not be regarded as incurred by a person in so far as it has been or is to be met, directly or indirectly, by the State, by any Board established by statute or by any public or local authority.
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(15)A deduction shall not be given under this section where the requirements of the Finance (Local Property Tax) Act 2012 , in relation to the making of returns and the payment of local property tax, have not been complied with in respect of the qualifying premises.
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(16)A deduction shall not be given under this section unless the person chargeable has been issued with a tax clearance certificate in accordance with section 1095 and such tax clearance certificate has not been rescinded under subsection (3A) of that section.
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(17)Where there is more than one person chargeable for the rental income from a qualifying premises— (a) the references to ‘the person chargeable’ in the definition of ‘qualifying expenditure’ in subsection (1) shall be construed as references to all such persons, (b) the reference to ‘the person chargeable’ in paragraph (a) of the definition of ‘qualifying premises’ in subsection (1) shall be construed as a reference to all such persons, (c) the reference to registration by the person chargeable in paragraph (b) of the definition of ‘qualifying premises’ in subsection (1) shall be construed as a reference to registration by any of those persons, (d) the references in subsections (4), (6) and (12)(e) to ‘the relevant amount’ shall be construed as references to the amount of the portion of the relevant amount that is equal to the portion of the rental income from the qualifying premises to which the person chargeable concerned is entitled, (e) the reference in subsection (7)(b)(i) to the person chargeable being in breach shall be construed as a reference to any of those persons being in breach, (f) the reference in subsection (8)(b) to the person chargeable issuing a notice shall be construed as a reference to any of those persons issuing a notice, (g) the reference in subsection (10)(a) to the person chargeable entering into a residential tenancy agreement shall be construed as a reference to any of those persons entering into a residential tenancy agreement.”.
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Amendment of certain tax exemption provisions of Principal Act 33. (1) The Principal Act is amended— (a) in Schedule 4, by the insertion of the following paragraph after paragraph 79A: “79B. The National Standards Authority of Ireland.”, and (b) in Part 1 of Schedule 15, by the insertion of the following paragraph after paragraph 47: “(48) The National Standards Authority of Ireland.”.
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(2)Subsection (1) shall be deemed to have come into operation on 14 April 1997.
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Amendment of Part 16 of Principal Act (relief for investment in corporate trades) 34. Part 16 of the Principal Act is amended— (a) in section 500, by the insertion of the following subsection after subsection (7): “(8) For the purposes of subsection (2), an individual shall not be connected with a company by reason that an associate of the individual— (a) has an interest in the share capital of that company, and (b) is a partner of the individual solely by virtue of their both being partners in a qualifying investment fund within the meaning of section 508IA.”, (b) in section 508A(3)(a)(vi), by the substitution of “subsection (2)(a) or (2A) of section 502, as the case may be” for “section 502(2)(a)”, and (c) in section 508U— (i) by the substitution of the following subsection for subsection (1): “(1) Where a statement of qualification issued by a company is incorrect, any relief claimed by an individual in excess of the relief which would have been claimed had a correct statement of qualification been furnished shall be withdrawn by the making of an assessment on the qualifying company to corporation tax under Case IV of Schedule D for the year of assessment for which the relief was given— (a) in an amount equal to 1.2 times the amount in section 508A(3)(a)(vi), or such part of that amount as does not qualify for relief, where the relief is in respect of shares issued on or before 31 December 2022, or (b) in an amount equal to 1.6 times the amount in section 508A(3)(a)(vi), or such part of that amount as does not qualify for relief, where the relief is in respect of shares issued on or after 1 January 2023.”, and (ii) in subsection (2), by the substitution of the following paragraph for paragraph (b): “(b) Where this subsection applies, any relief that has been given which is subsequently found not to have been due, shall be withdrawn by the making of an assessment to corporation tax under Case IV of Schedule D for the year of assessment for which the relief was given— (i) in an amount equal to 1.2 times the amount in section 508A(3)(a)(vi), or such part of that amount as no longer qualifies for relief, where the relief is in respect of shares issued on or before 31 December 2022, or (ii) in an amount equal to 1.6 times the amount in section 508A(3)(a)(vi), or such part of that amount as no longer qualifies for relief, where the relief is in respect of shares issued on or after 1 January 2023.”.
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Amendment of section 835D of Principal Act (principles for construing rules in accordance with OECD Guidelines) 35. (1) Section 835D of the Principal Act is amended— (a) in subsection (1), by the substitution of the following definition for the definition of “transfer pricing guidelines”: “‘transfer pricing guidelines’ means the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations published by the OECD on 20 January 2022 supplemented by such additional guidance, published by the OECD on or after the date of passing of the Finance Act 2022, as may be designated by the Minister for Finance for the purposes of this Part by order made under subsection (3).”, and (b) in subsection (3), by the deletion of “paragraph (c) of”.
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(2)Subsection (1) shall apply for chargeable periods (within the meaning of section 321(2) of the Principal Act) commencing on or after 1 January 2023.
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Amendment of section 743 of Principal Act (material interest in offshore funds) 36. Section 743 of the Principal Act is amended— (a) in subsection (1)(b), by the substitution of “subject to subsection (1B), a unit trust scheme” for “a unit trust scheme”, and (b) by the insertion of the following subsection after subsection (1A): “(1B) (a) In this subsection, ‘relevant Member State’ means— (i) a state, other than the State, which is a Member State of the European Union, or (ii) not being such a Member State, a state which is a contracting party to the Agreement on the European Economic Area signed at Oporto on 2 May 1992, as adjusted by the Protocol signed at Brussels on 17 March 1993. (b) A unit trust scheme referred in subsection (1)(b) shall not include a unit trust scheme— (i) which is or is deemed to be an authorised unit trust scheme (within the meaning of the Unit Trusts Act 1990 ) and has not had its authorisation under that Act revoked, (ii) the trustee of which is resident in a relevant Member State and provides the services of a trustee to the unit trust scheme through a branch in the State, and (iii) the general administration of which is ordinarily carried on in the State.”.
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Reporting by exempt unit trusts, common contractual funds and investment limited partnerships 37. (1) Section 731 of the Principal Act is amendedin subsection (5)(a)(iii)— (a) in clause (I) , by the deletion of “and”, (b) in clause (II)(B), by the substitution of “may require, and” for “may require.”, and (c) by the insertion of the following clause after clause (II): “(III) specifies in respect of the unit trust— (A) the business undertaken by the unit trust, namely those activities involving the assets of the unit trust used to generate gains of the unit trust which, in accordance with subparagraph (i), are not chargeable gains, including, but not limited to, activities which would be regarded as material to the operation of the unit trust, and (B) the net asset value of the unit trust.”.
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(2)Section 739I of the Principal Act is amended— (a) in subsection (4)— (i) in paragraph (a), by the deletion of “and”, (ii) in paragraph (b)(iii), by the substitution of “may require, and” for “may require.”, and (iii) by the insertion of the following paragraph after paragraph (b): “(c) specifies in respect of the common contractual fund— (i) the business undertaken by the common contractual fund, namely those activities involving the assets of the common contractual fund used to generate the relevant profits of the common contractual fund which, in accordance with subsection (2)(a), are not chargeable to tax, including, but not limited to, activities which would be regarded as material to the operation of the common contractual fund, and (ii) the net asset value of the common contractual fund.”, and (b) by the insertion of the following subsection after subsection (4): “(4A) Where the management company of the common contractual fund— (a) makes an incorrect or incomplete statement under subsection (4), or (b) fails, without reasonable excuse to make such a statement, then the management company shall be liable to a penalty of €3,000.”.
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(3)Section 739J of the Principal Act is amended— (a) in subsection (3)— (i) in paragraph (a), by the substitution of “partnership,” for “partnership, and”, (ii) in paragraph (b)(iii), by the substitution of “may require, and” for “may require.”, and (iii) by the insertion of the following paragraph after paragraph (b): “(c) specifies in respect of the investment limited partnership— (i) the business undertaken by the investment limited partnership, namely those activities involving the assets of the investment limited partnership used to generate the relevant gains, relevant income and relevant payments of the investment limited partnership which, in accordance with subsection (2)(a), are not chargeable to tax, including, but not limited to, activities which would be regarded as material to the operation of the investment limited partnership, and (ii) the net asset value of the investment limited partnership.”, and (b) by the insertion of the following subsection after subsection (3): “(3A) Where the partners of the investment limited partnership— (a) make an incorrect or incomplete statement under subsection (3), or (b) fail, without reasonable excuse to make such a statement, then those partners shall be liable to a penalty of €3,000.”.
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Chapter 5
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Corporation Tax Amendment of section 79 of Principal Act (foreign currency: computation of income and chargeable gains) 38. Section 79 of the Principal Act is amended, in subsection (1)(a)— (a) by the substitution of the following definition for the definition of “relevant monetary item”: “‘relevant monetary item’, in relation to a company, means— (i) a trade receivable of the company, (ii) a debt owed by a bank which is represented by a sum standing to the credit of the company in an account in the bank, where the sole purpose of the account is the lodgement and disbursement of amounts that are taken into account in computing profits or losses of a trade carried on by that company, (iii) money held by the company for the purposes of a trade carried on by it, or (iv) money payable by the company for the purposes of a trade carried on by it;”, and (b) by the insertion of the following definitions: “‘balance sheet’ means a balance sheet, statement of financial position or equivalent prepared in accordance with generally accepted accounting practice; ‘trade receivable’, in respect of a company, means an amount recorded in the company’s balance sheet as owed to that company in respect of goods or services sold by that company for the purposes of a trade carried on by it;”.
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Interest limitation 39. (1) Section 400 of the Principal Act is amended, in subsection (7A), by the substitution of “section 835AAD(8)” for “section 835AAD(8) or (10) ”.
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(2)Part 35D of the Principal Act is amended— (a) in section 835AY, in subsection (1)— (i) by the substitution of the following definition for the definition of ‘consolidating entity’: “‘consolidating entity’ means an entity, other than a non-consolidating entity, which is included in the ultimate consolidated financial statements or would be included in the ultimate consolidated financial statements but for being excluded by the ultimate parent on materiality grounds under generally accepted accounting practice or an alternative body of accounting standards;”, (ii) in the definition of “interest equivalent”— (I) by the insertion of the following paragraph after paragraph (c): “(ca) any amounts referred to in paragraph (a) or (b) claimed by a claimant company under section 420A(3) or 420B(2) that are treated under section 247(4G) for the purposes of Chapter 5 of Part 12 as relevant trading charges on income (within the meaning of section 243A),”, (II) in paragraph (e), by the substitution of “amounts economically equivalent to interest,” for “amounts economically equivalent to interest, and”, (III) in paragraph (f), by the substitution of “to be economically equivalent to interest, and” for “to be economically equivalent to interest;”, and (IV) by the insertion of the following paragraph after paragraph (f): “(g) any amounts referred to in paragraphs (a) to (f) treated for the purposes of section 83, in accordance with subsection (3) of that section, as if those amounts had been disbursed as expenses of management;”, and (iii) in the definition of “large scale asset”— (I) in paragraph (h), by the substitution of “Regulation of Utilities,” for “Regulation of Utilities, or”, (II) in paragraph (i), by the substitution of “section 835AAA(1), or” for “section 835AAA(1),” and (III) by the insertion of the following paragraph after paragraph (i): “(j) a large-scale residential development within the meaning of the Planning and Development Act 2000 , approved by a planning authority under section 34 or section 170 of that Act,”, (b) in section 835AZ— (i) in subsection (1)— (I) in paragraph (i), by the substitution of “but for this Part,” for “but for this Part, and”, (II) in paragraph (ii), by the substitution of “but for this Part, and” for “but for this Part.”, and (III) by the insertion of the following paragraph after paragraph (ii): “(iii) the amount of the excess referred to in subsection (2) of section 420B as it relates to interest on a loan to which section 247(4G) applies, to the extent relief may be claimed under that subsection, but for this Part.”,
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(ii) in subsection (4), by the substitution of the following paragraph for paragraph (c): “(c) amounts set off under section 420 or 420A other than: (i) interest treated as a charge on income that may be set off under section 420(6), but for this Part, (ii) expenses of management that may be set off under section 420(3), but for this Part, and (iii) interest treated as a charge on income that may be set off under section 420A(3), but for this Part.”, (c) in section 835AAB, by the insertion of the following subsection after subsection (2): “(2A) Where a debt, consisting in part of legacy debt and in part of debt which is not legacy debt, is repaid in part, the part so repaid shall be treated for the purposes of this Part as being a repayment of that part of the debt which is legacy debt in priority to that part of the debt which is not legacy debt.”, (d) in section 835AAD, by the substitution of the following subsection for subsection (15): “(15) The aggregate in an accounting period of— (a) the deemed borrowing cost utilised under sections (3), (8) and (12), and (b) a deduction in respect of an amount which, pursuant to subsection (19), was treated as an amount of interest for which relief could not be given by virtue of section 291A(6)(a) for the purposes of section 291A(6)(b)(ii), shall be limited to the amount of the total spare capacity in the accounting period.”, (e) in section 835AAE— (i) in subsection (6) by the substitution of “under subsection (3), (8) or (12)” for “under subsection (3), (8) or (10) ”, and (ii) by the insertion of the following subsection after subsection (6): “(7) Where an amount that is not deductible in respect of a deemed borrowing cost under section 835AAD(19) is deducted in a subsequent accounting period, having been treated as an amount of interest for which relief cannot be given by virtue of section 291A(6)(a) for the purposes of section 291A(6)(b)(ii), the amount of total spare capacity available for any subsequent claims or deductions shall be reduced by the amount so deducted.”, (f) in section 835AAG, in subsection (1)— (i) by the substitution of the following definition for the definition of “group EBITDA”: “‘group EBITDA’ means the amount included in respect of profit or loss, before taking into account any amount of income tax, finance income, finance costs, depreciation, amortisation or impairments, excluding any amounts in respect of a qualifying long-term infrastructure project, in the ultimate consolidated financial statements of the worldwide group or single company worldwide group, as the case may be, of which the relevant entity is a member for the period in which the relevant entity’s accounting period ends;”,
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and (ii) by the substitution of the following definition for the definition of “group exceeding borrowing costs”: “‘group exceeding borrowing costs’ means the amount included in respect of net finance expense, excluding any amount of finance income or finance expense in respect of a qualifying long-term infrastructure project, in the ultimate consolidated financial statements of the worldwide group or single company worldwide group, as the case may be, of which the relevant entity is a member for the period in which the relevant entity’s accounting period ends;”, and (g) in section 835AAI, by the insertion of the following subsection after subsection (1): “(1A) The ratio of equity over total assets for a relevant entity for an accounting period shall be calculated on the basis of financial statements that are prepared in accordance with— (a) the same body of accounting standards, and (b) the same accounting policies, that apply to the ultimate consolidated financial statements of the worldwide group of which the relevant entity is a member.”.
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(3)Subsections (1) and (2) shall apply for accounting periods commencing on or after 1 January 2023.
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(4)Section 959AR of the Principal Act is amended, in subsection (4), by the substitution of the following paragraph for paragraph (b): “(b) for accounting periods commencing on or after 1 January 2022 and ending on or before 31 December 2027— (i) the preliminary tax paid by the chargeable person for the accounting period in accordance with subsection (1) is less than 90 per cent of the tax payable by the chargeable person for the accounting period, (ii) the preliminary tax so paid by the chargeable person for the accounting period is not less than 90 per cent of the amount of tax which would be payable by the chargeable person for the accounting period if no amount were included in the company’s profits for the accounting period— (I) in respect of chargeable gains on the disposal of assets in the part of the accounting period which is after the date by which preliminary tax for the accounting period is payable in accordance with subsection (1), (II) in the case of a relevant company, in respect of profits or gains or losses accruing, and not realised, in the accounting period on financial assets or financial liabilities as are attributable to changes in value of those assets or liabilities in the part of the accounting period which is after the end of the month immediately preceding the month in which preliminary tax for the accounting period is payable in accordance with subsection (1), or (III) in respect of a disallowable amount (within the meaning of Part 35D), (iii) the chargeable person makes a further payment, if required, of preliminary tax for the accounting period within one month after the end of the accounting period and the aggregate of that payment and the preliminary tax paid by the chargeable person for the accounting period in accordance with subsection (1) is not less than 90 per cent of the tax payable by the chargeable person for the accounting period if no amount were included in the company’s profits for the accounting period in respect of a disallowable amount (within the meaning of Part 35D), (iv) the chargeable person makes a further payment of preliminary tax, if required, for the accounting period within a period of 6 months after the end of the accounting period, but where the last day of that period of 6 months is later than day 21 of the month in which it occurs, the further payment of preliminary tax for the accounting period is paid no later than— (I) day 21 of the month in which that last day occurs, or (II) where payment is made by such electronic means as are required by the Revenue Commissioners, day 23 of the month in which that last day occurs,
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and (v) following the making of any payment referred to in subparagraph (iii) or (iv), the aggregate of those payments and the preliminary tax paid by the chargeable person for the accounting period in accordance with subsection (1) is not less than 90 per cent of the tax payable by the chargeable person for the accounting period,”.
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(5)Section 959AS of the Principal Act is amended— (a) in subsection (1), by the substitution of “preliminary tax appropriate to a relevant accounting period” for “preliminary tax appropriate to an accounting period”, and (b) in subsection (7), by the substitution of the following paragraph for paragraph (b)— “(b) for accounting periods commencing on or after 1 January 2022 and ending on or before 31 December 2027— (i) the aggregate of the initial instalment and the final instalment of preliminary tax paid by the chargeable person for the accounting period in accordance with subsection (2) is less than 90 per cent of the tax payable by the chargeable person for the accounting period, (ii) the aggregate of the initial instalment and the final instalment of preliminary tax so paid by the chargeable person for the accounting period is not less than 90 per cent of the amount of tax which would be payable by the chargeable person for the accounting period if no amount were included in the company’s profits for the accounting period— (I) in respect of chargeable gains on the disposal of assets in the part of the accounting period which is after the date by which preliminary tax for the accounting period is payable in accordance with subsection (1), (II) in the case of a relevant company, in respect of profits or gains or losses accruing, and not realised, in the accounting period on financial assets or financial liabilities as are attributable to changes in value of those assets or liabilities in the part of the accounting period which is after the end of the month immediately preceding the month in which preliminary tax for the accounting period is payable in accordance with subsection (1), or (III) in respect of a disallowable amount (within the meaning of Part 35D), (iii) the chargeable person makes a further payment of preliminary tax, if required, for the accounting period within one month after the end of the accounting period and the aggregate of that payment and the initial instalment and final instalment of preliminary tax paid by the chargeable person for the accounting period in accordance with subsection (2) is not less than 90 per cent of the tax payable by the chargeable person for the accounting period if no amount were included in the company’s profits for the accounting period in respect of a disallowable amount (within the meaning of Part 35D), (iv) the chargeable person makes a further payment of preliminary tax, if required, for the accounting period within a period of 6 months after the end of the accounting period, but where the last day of that period of 6 months is later than day 21 of the month in which it occurs, the further payment of preliminary tax for the accounting period is paid no later than—
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(I) day 21 of the month in which that last day occurs, or (II) where payment is made by such electronic means as are required by the Revenue Commissioners, day 23 of the month in which that last day occurs, and (v) following the making of any payment referred to in subparagraph (iii) or (iv), the aggregate of those payments and the initial instalment and final instalment of preliminary tax paid by the chargeable person for the accounting period in accordance with subsection (2) is not less than 90 per cent of the tax payable by the chargeable person for the accounting period,”.
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Amendment of Chapter 5 of Part 29 of Principal Act (taxation of companies engaged in knowledge development) 40. (1) Chapter 5 of Part 29 of the Principal Act is amended— (a) in section 769I(5), by the substitution of “20 per cent” for “50 per cent”, (b) in section 769K— (i) in subsection (2), by the substitution of “20 per cent” for “50 per cent” in each place where it occurs, and (ii) in subsection (3), by the substitution of “125 per cent” for “200 per cent”, and (c) in section 769Q, by the substitution of “1 January 2027” for “1 January 2023”.
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(2)(a) Paragraphs (a) and (b) of subsection (1) shall come into operation on such day (in this subsection referred to as the “appointed day”) as the Minister for Finance may by order appoint and shall apply as respects accounting periods commencing on or after the appointed day. (b) Where an accounting period of a company commences before the appointed day and ends on or after the appointed day, it shall be divided into two parts, one commencing on the date on which the accounting period commences and ending on the day before the appointed day, the other commencing on the appointed day and ending on the date on which the accounting period ends, and both parts shall be treated, for the purposes of paragraph (a) as if they were separate accounting periods of the company.
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Amendment of section 481 of Principal Act (relief for investment in films) 41. (1) Section 481 of the Principal Act is amended, in subsection (3C), by the substitution of “31 December 2028” for “31 December 2024”.
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(2)Subsection (1) shall come into operation on such day as the Minister for Finance may appoint by order.
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Amendment of section 481A of Principal Act (relief for investment in digital games) 42. (1) Section 481A of the Principal Act is amended— (a) in subsection (1)— (i) by the substitution of the following definition for the definition of “digital games development company”: “‘digital games development company’ means a company that— (a) is resident in the State, or is resident in an EEA State, (b) carries on a trade of developing digital games that are wholly or principally to be made available to the public on a commercial basis with a view to the realisation of profit, and (c) is not, or is not part of, an undertaking which would be regarded as an undertaking in difficulty;”, and (ii) by the substitution of the following definition for the definition of “qualifying expenditure”: “‘qualifying expenditure’, in relation to an interim digital game or a qualifying digital game, is expenditure (the types of which are specified in regulations made under subsection (17)) incurred by the digital games development company on the design, production and testing of a digital game;”, (b) in subsection (13)— (i) in paragraph (e) by the deletion of “or”, (ii) in paragraph (f) by the substitution of “market,” for “market.”, and (iii) by the insertion of the following paragraphs after paragraph (f): “(g) the digital games development company is resident in an EEA State other than the State and does not carry on business in the State through a branch or agency, or (h) the digital games development company has not delivered to the Collector-General a return, in accordance with section 959I, in respect of— (i) the accounting period referred to in paragraph (a) of the definition of ‘qualifying period’, or (ii) each accounting period ending in the qualifying period, referred to in paragraph (b) of that definition, as the case may be.”, (c) in subsection (14)(d)(ii) by the substitution of “another Member State” for “another relevant Member State”, and (d) in subsection (16)(a)(i) by the substitution of the following clause for clause (I): “(I) an EEA State, or”.
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(2)Subsection (1) shall come into operation on such day as the Minister for Finance may appoint by order.
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Amendment of section 835YA of Principal Act (non-cooperative jurisdictions: modified application of sections 835T, 835U and 835V) 43. Section 835YA of the Principal Act is amended by the substitution of the following subsection for subsection (1): “(1) In this section, ‘listed territory’ means— (a) in relation to an accounting period beginning on or after 1 January 2021 but before 1 January 2022, a territory included in Annex 1 of the Council conclusions on the revised EU list of non-cooperative jurisdictions for tax purposes26 , as replaced by the EU list of non-cooperative jurisdictions for tax purposes Report by the Code of Conduct Group (business taxation) suggesting amendments to the Annexes to the Council conclusions of 18 February 202027 , (b) in relation to an accounting period beginning on or after 1 January 2022 but before 1 January 2023, a territory included in Annex 1 of the Council conclusions on the revised EU list of non-cooperative jurisdictions for tax purposes28 , and (c) in relation to an accounting period beginning on or after 1 January 2023, a territory included in Annex 1 of the Council conclusions on the revised EU list of non-cooperative jurisdictions for tax purposes29 .”.
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PART 2
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Excise Amendment of Schedule 2 to Finance Act 1999 (rates of mineral oil tax) 44. The Finance Act 1999 is amended with effect as on and from 28 September 2022 by the substitution of the following for Schedule 2 (amended by section 12 of the Finance (Covid-19 and Miscellaneous Provisions) Act 2022 ): “SCHEDULE 2 Rates of Mineral Oil Tax ”.
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Amendment of section 98 of Finance Act 1999 (horticultural production) 45. (1)
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Section 98
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of the Finance Act 1999 is amended in subsection (1)— (a) by the substitution of “carbon charge paid” for “mineral oil tax paid less an amount calculated at a rate specified in the Table to this subsection”, and (b) by the deletion of the Table to that subsection.
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(2)Subsection (1) shall come into operation on such day as the Minister for Finance may appoint by order.
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Amendment of Chapter 2 of Part 3 of Finance Act 2010 (natural gas carbon tax) 46. (1) The Finance Act 2010 is amended— (a) in section 66, by the insertion of the following definition: “‘glasshouse’ means any building or structure made substantially of glass or other transparent or translucent material which is capable of being artificially heated and which is used for growing horticultural produce;”, (b) in section 71(1)— (i) in paragraph (c), by the substitution of “State,” for “State, or”, (ii) in paragraph (d), by the substitution of “25 October 2012,” for “25 October 2012.”, and (iii) by the insertion of the following paragraphs after paragraph (d): “(e) in the production of horticultural produce in one or more than one glasshouse of a total area of not less than a quarter of an acre, or (f) in the cultivation of mushrooms in one or more than one building or structure of a total area of not less than 3,000 square feet.”, and (c) in section 72(2)(a), by the substitution of “paragraph (a), (b), (c), (e) or (f)” for “paragraphs (a), (b) and (c) ”.
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(2)Subsection (1) shall come into operation on such day as the Minister for Finance may appoint by order.”.
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Amendment of Schedule 2 to Finance Act 2005 (rates of tobacco products tax) 47. The Finance Act 2005 is amended with effect as on and from 28 September 2022 by the substitution of the following Schedule for Schedule 2 to that Act: “SCHEDULE 2 Rates of Tobacco Products Tax (With effect as on and from 28 September 2022) ”.
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Amendment of Chapter 1 of Part 2 of Finance Act 2003 (alcohol products tax) 48. (1) The Finance Act 2003 is amended— (a) in section 78A— (i) in subsection (1)(a), by the substitution of “75,000 hectolitres” for “50,000 hectolitres”, (ii) in subsection (3)(b)(ii), by the substitution of “150,000 hectolitres” for “100,000 hectolitres”, and (iii) in subsection (4)(b), by the substitution of “75,000 hectolitres” for “50,000 hectolitres”, (b) in section 78B, by the substitution of the following subsection for subsection (1): “(1) A producer of alcohol products established in the State availing of reduced rates of duty in accordance with Article 4, 9a, 13a, 18a or 22 of the Directive in another Member State shall, in accordance with such conditions as the Commissioners may prescribe, provide declarations as to— (a) the compliance of the producer with the criteria set out in Article 4, 9a, 13a, 18a or 22 of the Directive, as may be applicable, and (b) the total annual production of the producer in the previous year.”, and (c) by the insertion of the following section after section 78B: “Relief for small producers of cider and perry 78C. (1) In the case of cider and perry exceeding 2.8% vol but not exceeding 8.5% vol that is subject to alcohol products tax, a relief of half the amount of alcohol products tax paid on such cider and perry shall, subject to subsection (3) and to such conditions as the Commissioners may prescribe or otherwise impose, be granted on a combined total quantity of cider and perry not exceeding 8,000 hectolitres in a calendar year, produced by a producer of cider and perry— (a) where the combined total quantity of cider and perry produced by that producer in the previous year has not exceeded 10,000 hectolitres, (b) which is legally and economically independent of any other producer of cider and perry, (c) the premises of which are situated physically apart from those of any other producer of cider and perry, and (d) where less than 50 per cent of the cider and perry produced by that producer in the previous calendar year has been produced under a licence, franchise or contract arrangement for another producer of cider and perry.
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(2)Relief under subsection (1) shall be granted by the Commissioners either by means of remission or repayment.
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(3)(a) Subject to paragraph (b), relief under subsection (1) does not apply to any cider and perry produced for another producer of cider and perry under a licence, franchise or contract arrangement. (b) Notwithstanding paragraph (a), where cider and perry is produced by a producer of cider and perry under a licence, franchise, contract or other cooperation arrangement with one or more other producers of cider and perry, and where— (i) such a producer and each of the producers with which it has such an arrangement satisfy the criteria set down in paragraphs (a), (b) and (c) of subsection (1), and (ii) the combined total quantity of the cider and perry produced in the previous calendar year, by such producer and the producers with which it has such an arrangement, has not exceeded 15,000 hectolitres, then subsection (1)(d) does not apply, and such cider and perry qualifies for relief under subsection (1).
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(4)(a) For the purposes of subsection (1)(b), a producer of cider and perry is not considered to be legally and economically independent of another producer of cider and perry where such producers are directly or indirectly owned or partly owned— (i) by the same person, or (ii) by associated companies within the meaning of section 432 of the Taxes Consolidation Act 1997 or by legal entities corresponding to such associated companies. (b) Notwithstanding subsection (1)(b) and paragraph (a), where a person referred to in paragraph (a)(i) or (ii) directly or indirectly owns two or more producers of cider and perry and the combined total quantity of cider and perry produced by those producers in the previous calendar year has not exceeded 10,000 hectolitres, they may be treated for the purposes of this section as a single producer of cider and perry which is legally and economically independent of any other producer of cider and perry.
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(5)(a) Claims for repayment under subsection (2) shall be made in such form as the Commissioners may direct and shall be in respect of payments of alcohol products tax made within a period of 3 calendar months beginning on the first day of January, April, July or October. (b) A repayment may not be made under this section unless the claim is made within 6 months following the end of each such period or within such longer period as the Commissioners may, in any particular case, allow.”.
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(2)Subsection (1) shall come into operation on such day or days as the Minister for Finance may by order or orders appoint and different days may be appointed for different purposes or different provisions.
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Reduction in excise duty on special exemption orders 49. (1) Section 78 of the Finance Act 1980 is amended by the substitution of the following subsection for subsection (4): “(4) There shall be charged, levied and paid on every special exemption order granted under section 5 of the Intoxicating Liquor Act 1927 , or section 13 of the Intoxicating Liquor Act 1962, a duty of excise of €55.”.
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(2)Subsection (1) shall have effect as on and from 28 September 2022.
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Amendment of section 67 of Finance Act 2002 (betting duty) 50.
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Section 67
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of the Finance Act 2002 is amended by the insertion of the following subsection after subsection (2): “(2A) Notwithstanding subsection (2), where a bet is placed by a person in pursuance of an offer which permits the person to pay nothing or less than the amount which that person would have been required to pay without the offer, the amount of the bet shall be equal to the amount of the unit stake.”.
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Amendment of section 126 of Finance Act 2001 (proceedings in relation to offences) 51. (1)
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Section 126
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of the Finance Act 2001 is amended by the insertion of the following subsection after subsection (6): “(7) Subsection (5) shall not apply to summary proceedings instituted in respect of an offence that is triable, at the election of the prosecution, either on indictment or summarily.”.
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(2)This section shall have effect as respects proceedings referred to in section 126 of the Finance Act 2001 instituted after the coming into operation of this section.
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PART 3
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Value-Added Tax Interpretation (Part 3) 52. In this Part, “Principal Act” means the Value-Added Tax Consolidation Act 2010 .
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Amendment of section 46 of Principal Act (rates of tax) 53. Section 46 of the Principal Act is amended, in subsection (1)(caa), by the substitution of “28 February 2023” for “31 October 2022”.
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Amendment of section 59 of and Schedule 1 to Principal Act 54. The Principal Act is amended— (a) in section 59(1), in the definition of “qualifying activities”— (i) in paragraph (d), by the substitution of the following subparagraph for subparagraph (ii): “(ii) directly in connection with the export of goods to a place outside the Community, and”, and (ii) by the deletion of paragraph (e), and (b) in Part 2 of Schedule 1, in paragraph 6(1), by the substitution of the following clause for clause (a): “(a) issuing, transferring or otherwise dealing in stocks, shares, debentures and other securities (other than documents establishing title to goods);’’.
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Registration 55. The Principal Act is amended— (a) in section 65(3), by— (i) the designation of the existing provision as paragraph (a) of that subsection, and (ii) the insertion of the following paragraphs after paragraph (a): “(b) Where an accountable person, when registering for tax, has furnished particulars specified in regulations referred to in paragraph (a) stating that he or she shall not engage in intra-Community trade, and the person subsequently engages in intra-Community trade, that person shall, within the period of 30 days beginning on the date on which he or she first engages in intra-Community trade, notify the Revenue Commissioners in writing of such an engagement. (c) Where an accountable person notifies the Revenue Commissioners under paragraph (b) regarding his or her engagement in intra-Community trade, the Revenue Commissioners shall request that person to correct the particulars furnished as specified in regulations referred to in paragraph (a). (d) In this subsection, ‘intra-Community trade’ means— (i) the intra-Community supply of goods made by an accountable person and dispatched or transported from the State to a person registered for value-added tax in another Member State, or (ii) the intra-Community acquisition of goods.”, (b) in section 91C(2), by the substitution of “subsection (3)(a) of section 65” for “subsection (3) of section 65”, (c) in section 91E(2), by the substitution of “subsection (3)(a) of section 65” for “subsection (3) of section 65”, and (d) in section 91K(2), by— (i) the substitution of “subsection (3)(a) of section 65” for “subsection (3) of section 65”, and (ii) the substitution of “subsection (3)(a)” for “subsection (3) ”.
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Amendment of section 86 of Principal Act (special provisions for tax invoiced by flat-rate farmers) 56. Section 86 of the Principal Act is amended, in subsection (1), with effect from 1 January 2023, by the substitution of “5 per cent” for “5.5 per cent”.
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Amendment of Part 13 of Principal Act (administration and general) 57. Part 13 of the Principal Act is amended— (a) in section 108— (i) in subsection (7), by the substitution of “subsection (8)” for “subsection (7) ”, and (ii) by the substitution of the following subsection for subsection (8): “(8) (a) In this subsection— ‘EEA Agreement’ means the Agreement on the European Economic Area signed at Oporto on 2 May 1992 as adjusted by all subsequent amendments to that Agreement; ‘EEA state’ means a state which is a contracting party to the EEA Agreement; ‘EU value-added tax’ means value-added tax referred to in the VAT Directive and includes tax within the meaning of section 2; ‘financial institution’ means— (i) a person who holds or has held a licence under section 9 or an authorisation granted under section 9A of the Central Bank Act 1971 , or a person who holds or has held a licence or other similar authorisation under the law of an EEA state, other than the State, which corresponds to a licence granted under the said section 9, (ii) a person referred to in section 7
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(4)of the Central Bank Act 1971 , or (iii) a credit institution (within the meaning of the European Union (Capital Requirements) Regulations 2014 ( S.I. No. 158 of 2014 )) which has been authorised by the Central Bank of Ireland to carry on the business of a credit institution in accordance with the provisions of any financial services legislation (within the meaning of those Regulations), other than an authorisation granted under section 9A of the Central Bank Act 1971 ; ‘records’ means any document, or any other written or printed material in any form, including any information stored, maintained or preserved by means of any mechanical or electronic device, whether or not stored, maintained or preserved in a legible form, which a person is required to keep, retain, issue or produce for inspection or which may be inspected under any provision relating to EU value-added tax. (b) The case referred to in subsection (7) is a case in which an authorised officer is required by Council Regulation 904/2010/EU of 7 October 201030 on administrative cooperation and combating fraud in the field of value-added tax to provide to a requesting authority (as defined in Article 2 of that Council Regulation) in another Member State, on request by that authority, any books, records, accounts or other documents whether— (i) related to a business being carried on in the State or another Member State, (ii) connected with that business by means of trading relations, either current or otherwise, that such a business has had with other businesses, or (iii) held by a financial institution, and where such a request is made, the books, records, accounts or other documents that may be the subject of the exercise of the powers referred to in subsection (7) shall extend to such books, records, accounts or other documents as are deemed to be relevant by the authorised officer. (c) Notwithstanding any obligation as to secrecy or other restriction upon disclosure of information imposed by or under statute or otherwise, and subject to this section, an authorised officer may, for the purpose of fulfilling a request related to the case referred to in this subsection, serve on a financial institution a notice in writing— (i) requiring the financial institution, within such period as may be specified in the notice, not being less than 30 days from the date of service of the notice, to do either or both of the following, as may be specified in the notice: (I) to make available for inspection by the authorised officer such books, records, accounts or other documents as are in the financial institution's power, possession or procurement and as contain, or may, in the opinion of the authorised officer (being an opinion formed on reasonable grounds) contain, information relevant to the case referred to in this subsection;
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(II) to furnish to the authorised officer, in writing or otherwise, such information, explanations and particulars as the authorised officer may reasonably require, being information, explanations and particulars that are relevant to any such case, and (ii) informing the financial institution of the consequences under section 115(5A) of failing to comply with the notice. (d) Where, in compliance with the requirements of a notice under paragraph (c), a financial institution makes available for inspection by an authorised officer, books, records, accounts or other documents specified in the notice, it shall afford the authorised officer reasonable assistance, including information, explanations and particulars, in relation to the use of all the electronic or other automatic means, if any, by which the books, records, accounts or other documents, in so far as they are in a non-legible form, are capable of being reproduced in a legible form and any data equipment or any associated apparatus or material. (e) An authorised officer shall not serve a notice on a financial institution under paragraph (c) without the consent in writing of a Revenue Commissioner and without having reasonable grounds to believe that the financial institution is likely to have information relevant to the case referred to in this subsection. (f) Where, in compliance with a notice served under paragraph (c), a financial institution makes books, records, accounts or other documents available for inspection by an authorised officer, the authorised officer may take extracts from or make copies of all or any part of the books, records, accounts or other documents.”, and (b) in section 115, by the insertion of the following subsection after subsection (5): “(5A) A financial institution which fails to comply with a notice served under section 108(8)(c) shall be liable to a penalty of €4,000.”.
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Amendment of paragraph 2 of Schedule 1 to Principal Act (medical and related services) 58. Schedule 1 to the Principal Act is amended, in Part 1, in paragraph 2, by the substitution of the following subparagraph for subparagraph (3): “(3) Professional medical care services (other than dental or optical services) supplied by— (a) a member of a designated profession (within the meaning of section 3 of the Health and Social Care Professionals Act 2005) whose name is entered in the register of members of that profession under and in accordance with that Act, (b) a registered medical practitioner (within the meaning of section 2 of the Medical Practitioners Act 2007 ), or (c) a registered midwife or registered nurse (both within the meaning of section 2 of the Nurses and Midwives Act 2011 ), but only if those services are not supplied in the course of carrying on a business that wholly or partly consists of selling goods.”.
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Amendment of paragraph 3 of Schedule 1 to Principal Act (certain independent groups, non-profit making organisations and other bodies) 59. Schedule 1 to the Principal Act is amended, in Part 1, in paragraph 3, by the substitution of the following subparagraph for subparagraph (1): “(1) The supply of services by an independent group of persons, being a group that is an independent entity established for administrative convenience by persons each of whom carries on an activity which is exempt from, or is not subject to, tax, for the purpose of rendering to its members the services directly necessary to enable them to carry on that activity, but only if the group recovers from its members the exact amount of each member’s share of the joint expenses.”.
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Amendment of paragraph 6(2) of Schedule 1 to Principal Act (financial services - EU funds) 60. The Principal Act is amended, in Part 2 of Schedule 1, in paragraph 6(2), by the insertion of the following clauses after clause (eb): “(ec) an undertaking for collective investment in transferable securities (within the meaning of Article 1 of Directive 2009/65/EC of the European Parliament and of the Council of 13 July 200931 ) which has been authorised by the competent authority (as defined in point (h) of Article 2(1) of that Directive) of another Member State; (ed) an EU AIF (as defined in point (k) of Article 4(1) of Directive 2011/61/EU of the European Parliament and of the Council of 8 June 201132 ) managed by an AIFM (as defined in point (b) of Article 4(1) of that Directive) which has been authorised by the competent authority (as defined in point (g) of Article 4(1) of that Directive) of another Member State;”.
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Amendment of paragraph 6(2) of Schedule 1 to Principal Act (financial services - section 110 companies) 61. (1) The Principal Act is amended in Part 2 of Schedule 1, in paragraph 6(2), by the substitution of the following clause for clause (e):