Tax Updates 2014

Posted on Tuesday, 14 January 2014

VAT

• The standard VAT rate will be increased to 19% (from 18% that is today) starting from 13 January 2014.
• The reduced rate VAT will be increased to 9% (from 8% that is today) starting from 13 January 2014.

National Insurance Contributions

• National Insurance Contributions will increase for both employees and employers to 7.8 % (1% increase on both) on 01 January 2014. It is estimated that national insurance contributions will increase by 0.5% for both employees and employers every 5 years.

• Self-employed individuals will experience a 2% increase in their contributions reaching 14.6% for the years 2014-2018 starting from 01 January 2014.

Special contribution for salaries

• The special contribution for salaries introduced in 2012 payable on gross salaries, employee pensions, self-employed individuals’ profits and government employee pensions is extended to 2016.
• The minimum rate of special contribution of 2.5% will from 01 January 2014 be subject to monthly salaries, profits and pensions starting from 1500 euro instead of 2500 euro that was the case last year.