Budget 2013 does not address inequities in PRSI regime – Deloitte |
Commenting on the PRSI changes announced today, Joanne Whelan, Head of Private Clients, Deloitte, highlighted inequities in the system.
“Despite the Minister’s emphasis on the stimulation of job creation and focus on the SME sector and his assertion of fairness in the tax code, many of those who create jobs, i.e. the self-employed, continue to be unfairly treated vis a vis PRSI and the Universal Social Charge (USC).
“While the Minister has attempted to address the inequity between the self-employed and the employed who have income from a trade or profession, by bringing the latter group’s trading income and unearned income into the PRSI net from 2013 onwards, the PRSI change to tax unearned income for the employed does not come into effect until 2014 and will give that group another tax advantage for a year over the self-employed.
“Furthermore, at present the USC rate applying to the self-employed with income over a limit of €100,000 is 10% while those in employment earning similar levels continue to be taxed at the lower rate of 7%. This budget does not address this current inequity with regards to the USC charge.”
For full details of Deloitte’s commentary and analysis on Budget 2013, please visit www.deloitte.com/ie/budget2013.
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The information contained in this press release is correct at the time of going to press.
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Contacts
- Name:
- Claire Quinn
- Company:
- Deloitte
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- PR
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- cquinn@deloitte.ie
- Name:
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- emicheau@murrayconsult.ie
Related Links
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www.deloitte.com/ie/budget2013
Visit our Budget 2013 website