Wednesday, 20 May 2020
Department of Finance
Tax Reliefs Availability
106. To ask the Minister for Finance if there is tax relief or grants or supports available to businesses that will need to incur costs to implement social distancing measures in the interest of public health to reopen their doors due to Covid-19; and if he will make a statement on the matter. [6415/20]
When computing the amount of profits or gains to be charged to corporation tax, a company is, in general, entitled to deductions in respect of revenue expenditure wholly and exclusively incurred for the purposes of its trade as provided for in section 81 of the Taxes Consolidation Act, 1997.
I am advised by the Revenue Commissioners that where a business incurs costs to implement social distancing measures for the purposes of the trade or profession concerned, those costs will be tax-deductible under the general income tax and corporation tax rules.
Capital expenditures are not immediately tax-deductible for the year of such expenditure. However, if a business were to incur capital expenditure on plant and machinery to implement social distancing measures capital allowances could be claimed on that expenditure. These capital allowances would provide an annual deduction from income, of 12.5% of the expenditure, for 8 years.
The Government has announced a range of measures designed to support businesses during the COVID-19 crisis. Details of which are available at: www.gov.ie/en/publication/fe8f00-government-outlines-further-measures-to-support-businesses-impacted-/.
The Government is fully aware of the unprecedented impact that the Covid-19 corona virus is having on business and people’s livelihoods. In addition to support measures currently in place, my officials are continually examining a range of possible measures to ensure that the economy is in a position to recover while maintaining a stable tax base.