In addition, to support the badly impacted hospitality and tourism sectors a new Stay and Spend Incentive will see any taxpayer spending over €625, on accommodation, food and non-alcoholic drinks, between October 2020 and April 2021, able to claim back €125 through a tax credit.
A €10 million Restart Fund for the Tourism sector is also being introduced, along with a €10 million pilot Performance Support Scheme for the culture sector to assist planning for events in the context of COVID-19.
To provide immediate cash-flow support to previously profitable companies, the early carryback of trading losses will be allowed, leading to an immediate refund of some or all of corporation tax paid.
There will be a new income tax relief for self-employed individuals who were profitable in 2019 but, as a result of the COVID-19 pandemic, incur losses in 2020.
There will be a 6-month reduction in the standard rate of VAT from 23% to 21%, effective from the beginning of September, at a cost of €440 million.
Enhanced levels of support will be made available under Help to Buy scheme
until December 2020, at a cost of €18 million.
The government will also pass legislation to confirm the previously announced warehousing of tax liabilities.
This will allow for businesses affected by COVID-19 to delay payment of their PAYE and VAT debts in part of in full for a set period with no interest or penalties.
In order to provide support to taxpayers experiencing difficulty with tax liabilities, the interest rate applying to agreed repayments of all tax debt (where agreement has been reached prior to 30 September 2020) will be reduced to 3%.
An increased allowable expenditure under the Cycle to Work scheme
from €1,000 to €1,500 in respect of "ebikes," and €1,250 in respect of other bicycles will be introduced.