Corporation Tax

Taxation of investments. Exchange Traded Funds (ETFs). Offshore Funds. UCITS, Irish domiciled funds. Life Assurance Policies. Personal and Corporate Tax

Today, 6^th October 2026, the Tánaiste has announced exciting changes for investments in his Budget 2027 speech. These updates will soon become law under the Finance (No.2) Bill 2026.

New Investment Account

The government is introducing a brand new Investment Account starting 1^st July 2027. This follows the European Commission’s 2025 recommendation on Savings and Investment Accounts.

The Minister confirmed a direct tax cut starting 1^st January 2027. The government is reducing both the Investment Undertaking Tax (IUT) and Life Assurance Exit Tax (LAET) rates. The tax rate will drop from 38% to 35%, marking a 3 percent reduction.

Furthermore, corresponding reductions will apply to equivalent offshore funds. Certain foreign life assurance policies will also benefit from this lower rate. These changes mark a major step in reforming retail investment products.

Key Features of the New Investment Account

The new account aims to simplify retail investment. It reduces barriers for individuals and provides a straightforward, tax-efficient framework.

The core rules of the Investment Account include:

1. Eligibility: Available to Irish residents aged 18 and over who hold a PPSN.
2. Taxation: A flat 1% tax rate applies to the account value above a €50,000 tax-free threshold.
3. Contributions: A maximum annual limit of €12,000 applies, with no minimum limit.
4. Account Rules: Investors can only hold one account per person at launch.
5. Providers will calculate the account value daily. They will use the average daily value to determine any tax due.

Exemption from Deemed Disposal and Traditional Taxes

Crucially, these accounts will operate entirely outside the scope of current investment taxes. Therefore, investors will not pay Capital Gains Tax (CGT) or Dividend Withholding Tax. They are also exempt from IUT and LAET.

In addition, the Tánaiste confirmed that the eight-year deemed disposal rule will not apply to assets held inside this account.

Eligible Products and Hands-Free Administration

To make investing easier, eligible providers will manage all tax reporting, administration, and Revenue payments. These providers include MiFID-authorised service providers, regulated fund managers, and insurance companies.

At launch, investors can hold the following products in the account:

• Shares and bonds
• Investment funds,
• ETFs
• Insurance-based investment products

Investment Undertaking Tax

The Investment Undertaking Tax (IUT) rate is dropping from 38% to 35%. This tax cut applies to Irish-domiciled unit trusts, authorised investment companies, and ICAVs.

Life Assurance Exit Tax

The Life Assurance Exit Tax (LAET) rate is dropping from 38% to 35%. Specifically, this change affects policies contracted since 2001 with Irish-domiciled life assurance companies.

Equivalent Offshore Funds

Offshore ETFs (Exchange Traded Funds) and funds, which are considered equivalent to Irish domiciled funds, will see a tax cut from 38% to 35%. Specifically, this applies to investments across the EU, EEA, or OECD partner countries. Additionally, Finance (No.2) Bill 2026 will update the rules in relation to units held in recognised clearing systems. As a result, Irish-domiciled ETFs in a recognised clearing system will also qualify for the 35% tax rate.

Foreign Life Assurance Policies

Ireland is cutting the tax rate on specific offshore life assurance policies from 38% to 35%. Consequently, this lower rate applies to policies started after 2001 through companies, agencies, or branches in the EU, EEA, or OECD partner countries.

For full information, please click: https://www.gov.ie/en/department-of-public-expenditure-infrastructure-public-service-reform-and-digitalisation/publications/your-guide-to-budget-2027/

For all your Personal Tax compliance and advisory requirements, please contact us at info@accountsadvicecentre.ie

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.

Budget 2027. Corporation Tax. Business Tax. Research and Development (R&D) Tax Credit. Preliminary Tax.

Budget 2027 was announced today, 6^th October 2026, setting out the Government’s tax and spending priorities.  In particular, five targeted enhancements to Ireland’s research and development (R&D) tax credit were introduced.

R&D Tax Credit

Higher Limits for Subcontracting R&D

The government is increasing the limits for subcontracting R&D work. This change applies to both higher education institutions and unconnected third parties.

The New Rules: The cap will rise to 20% of your in-house R&D spend or €200,000 (whichever is greater).

The Current Rules: Previously, the level of qualifying subcontracted expenditure was capped at 15% or €100,000.

Boosted Cash Flow for Smaller Projects

The first-year payment threshold will rise from €87,500 to €105,000. Therefore, companies claiming €105,000 or less will receive their full refund benefit in year one.

In addition, claimants with credits between €105,000 and €210,000 will receive their refunds much faster than larger firms. Ultimately, this change directly improves cash flow and funding access for small and medium-sized enterprises (SMEs).

Easier Preliminary Corporation Tax Offsets

The Minister announced changes to provide for a simplification measure to improve recognition of the R&D tax credit when calculating Preliminary Tax.

New 5% Wage Cost Bonus

A new provision will allow claimant companies to increase their qualifying cost base. Specifically, you can now add 5% of your qualifying R&D wage costs to your claim, provided you meet minimum expenditure rules.

In other words, eligible claimant companies can increase this base by 5 percent of their qualifying R&D wage costs. However, they must first incur a sufficient level of overall expenditure to qualify.

Simplified Science Test for Clinical Trials

Finally, an upcoming amendment will simplify the application process for life sciences. If a clinical trial is legally regulated, this status may satisfy the necessary “science test.”

This practical measure recognizes the vital R&D work Irish companies do during global trials. Furthermore, it should greatly reduce the administrative burden on businesses.

Knowledge Development Box (KDB) Extended to 2032

The Tánaiste recently confirmed a major extension for the Knowledge Development Box (KDB) relief. The government will extend this tax incentive until 1^st January 2032.  Additionally, the update introduces a new flexibility. Existing claimant companies can now choose to elect out of the KDB regime entirely.

Major Reforms to Preliminary Corporation Tax Rules

The Tánaiste recently announced significant changes to preliminary corporation tax (PT) rules. Here is a breakdown of what is changing.

Higher Threshold for Large Companies

Your preliminary tax obligations depend heavily on whether your business counts as a small or large company.

The New Rules: The government is increasing the large company monetary threshold to €350,000.

The Current Rules: Previously, you were classified as a large company if your corporation tax liability exceeded €200,000 in the prior accounting period.

New Flexible Top-Up Mechanism

Currently, large companies must pay their preliminary tax in two separate instalments.  The second instalment must bring the total payment up to at least 90% of the final tax liability for the current accounting period, with the balance of tax outstanding for the period being paid on or before the company’s specified tax return filing date.

However, the government is introducing an amendment to create a much fairer top-up mechanism. Under the new rules, you satisfy your tax requirements if you pay 80% of the current year liability by the second instalment date. You can then make a top-up payment to reach 100% of the liability within four months after your accounting period ends.

Removal of Harsh Interest Penalties

Previously, if a company missed its Preliminary Tax deadlines, Revenue applied statutory interest. The rules accelerated your payment schedule so that 45% of your tax was deemed due back in month six and 100% was deemed to be due in month eleven of the accounting period.

Fortunately, the Tánaiste announced the complete removal of this 45% deeming provision. An underpayment of the second instalment of preliminary tax does not result in a deemed underpayment of the first instalment, in circumstances where the first instalment payment did not represent at least 50% of the prior year liability.

Four-Year Extension for Start-Up Corporation Tax Relief

The government is extending the Relief for Certain Start-Up Companies by four full years. Eligible new businesses can now claim this tax relief until 31^st December 2030.  Specifically, this incentive (governed by Section 486C of the Taxes Consolidation Act 1997) provides crucial tax relief during a company’s early growth phase.

How the Start-Up Relief Works

The scheme supports qualifying new businesses during their first five years of trading. The relief applies based on your annual corporation tax liability:

Full Relief: Available for companies with an annual corporation tax liability of less than €40,000.

Marginal Relief: Available on a sliding scale for companies with a tax liability between €40,000 and €60,000.

Please note that the government caps this overall relief by reference to certain PRSI contributions paid by the company.

Extension for Key Corporate Investment Reliefs (EII, SCI, and SURE)

The government announced an extension for three vital funding schemes that support Irish businesses. This extension applies directly to the Employment Investment Incentive (EII), the Start-Up Capital Incentive (SCI), and the Start-Up Relief for Entrepreneurs (SURE).

However, this update depends on the formal adoption of the new EU State aid General Block Exemption Regulation (GBER).

Relief for Investment in Innovative Enterprises (Angel Investor Relief)

The Tánaiste announced his intention to extend Angel Investor Relief in its current format. This extension is subject to the adoption of the new EU State aid GBER, which is due to be adopted by the end of 2026. Angel Investor Relief is available to individuals and allows a qualifying investor to avail of a reduced CGT rate of 16% (or 18% in the case of investments made via a partnership) on a gain arising on the sale of a qualifying investment in a qualifying company subject to certain conditions. Angel Investor Relief aims to support increased investment in innovative start-up businesses

Important Updates to EU Minimum Tax Directive (Pillar Two Rules)

Ireland is to introduce key amendments to Part 4A of the Taxes Consolidation Act 1997. These changes will align Irish law with the EU Minimum Tax Directive. This directive enforces the global Pillar Two rules developed by the OECD.

New OECD Safe Harbours Introduced

Following a recent international agreement, Ireland must implement new rules within specified timeframes. Specifically, this update introduces five critical safe harbours to help businesses manage their tax compliance:

• Transitional Country-by-Country Reporting Safe Harbour (extended)
• Simplified Effective Tax Rate Safe Harbour
• Substance-based Tax Incentive Safe Harbour
• Ultimate Parent Entity Safe Harbour
• Side-by-Side Safe Harbour

Flexible Timelines for Enhanced Reporting Requirements (ERR)

The Tánaiste announced a change to the Enhanced Reporting Requirements (ERR) timeline. Starting from 1^st January 2027, taxpayers will gain much-needed flexibility when reporting tax-free benefits.

What are the New ERR Reporting Options?

Currently, real-time reporting places a heavy administrative burden on companies. Under the new rules, employers can choose between two flexible reporting paths:

Option 1: Report the information on or before you provide the tax-free benefit.

Option 2: Report the information by the 14th day of the following month.

Consequently, this new monthly reporting window will significantly ease pressure on internal payroll teams.

Professional Services Withholding Tax (PSWT)

The Tánaiste announced that the standard 20% Professional Services Withholding Tax (PSWT) rate will be replaced. Instead, Revenue will introduce new ‘Personalised Deduction Rates’. This change is subject to a commencement order.

Upcoming PRSI Contribution Rate Increases

The government previously confirmed in Budget 2024 that all PRSI contribution rates will rise gradually over a five-year period.

Recently, all classes of PRSI increased by 0.15 percentage points on 1^st October 2026.

Future PRSI Timeline

To help businesses plan ahead, the government will phase in the remaining changes over the coming years:

From 1^st October 2027: Rates will increase by a further 0.15 percentage points.

October 2028: Rates will rise by a final 0.2 percentage points.

Consequently, employers should update their payroll forecasts to account for these upcoming statutory changes.

The Minister for Social Protection will increase the threshold for the lower rate of Employers’ PRSI from €552 to €600 per week for 2027.

For full information, please click: https://www.gov.ie/en/department-of-public-expenditure-infrastructure-public-service-reform-and-digitalisation/publications/your-guide-to-budget-2027/

For all your Business and Corporation Tax compliance and advisory requirements, please contact us at info@accountsadvicecentre.ie

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.

Company Secretarial, CRO, Corporation Tax, Corporate Clients, Company Accounts

Every company must file a B1 Annual Return and financial statements with the Companies Registration Office (CRO) every calendar year, except for their first B1 or when extending an Annual Return Date (ARD).

Annual Filing Requirements

Every company must file a B1 Annual Return and financial statements with the CRO Annual Return Portal each calendar year.

• Exceptions: A first-time B1 filing skips financial statements, and companies can extend their Annual Return Date (ARD) using a Form B73.

Determining Company Details

The Annual Return Date (ARD) dictates the exact company information required for the B1 filing.

• The Snapshot: Form B1 captures statutory details—such as directors, secretaries, and share capital—precisely as they exist on that specific ARD.

Reporting Post-ARD Changes

You must exclude any changes occurring after the ARD from your current filing.

• Next Steps: You report these changes on the following year’s B1 return. However, you must still submit standalone event forms (like a Form B10 for a director change) independently within 14 days of the actual event.

Submission Platform

Most presenters use CORE to submit their B1 forms.

• Live Data: The portal pulls official data directly from the central CRO database to complete form fields automatically.

Process Simplification

CORE speeds up filing by providing pre-filled B1 forms.

• Automation: The system automatically includes any company updates officially registered with the CRO over the previous 12 months.

Risks of Pre-Filled Forms

Relying blindly on pre-filled data submits outdated or incorrect information.

• Compounding Errors: Companies repeat compliance mistakes year after year if they fail to manually verify and update unverified form fields.

For all your company secretarial, financial accounting and corporation tax requirements, please contact us at info@accountsadvicecentre.ie

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.

Landlord’s Tax Relief Ireland, Residential Premises Rental Income Relief, RPRIR

Are you an individual landlord of rented residential property in Ireland?

If so, this nine page Revenue guidance material published today may be of interest to you, especially if you are a non-resident landlord.  In general, non-resident individuals are not entitled to any personal tax credits, reliefs and/or deductions. Section 1032 TCA 1997, however, provides that in certain circumstances, a portion of the credits, reliefs or deductions may be available, which is calculated by the ratio the Irish source income bears to the individual’s total income.

Are there any scenarios in which a clawback of the Relief may arise?

Section 4 of this Revenue guidance manual sets out the circumstances in which a clawback will arise:

The relief will be reclaimed in the following situations:

1. If the landlord ceases to be a landlord of a qualifying premises within four years of the first year in which relief is claimed. This may arise because the residential rental property is sold or gifted or because the landlord has removed it from the rental market

2. If the property is not rented to a tenant and is not actively listed for rent.

3. If the property’s use changes from a residential letting to say, a holiday home or a short-term letting.

4. If the property is rented to a connected person or a relative.

Important points to keep in mind:

• In circumstances where the landlord no longer qualifies for the RPRIR, a Revenue officer will amend the assessment for each year of assessment where the relief was claimed.

• The tax clawed back will not exceed the amount of relief actually claimed.

• The relief will not be clawed back in circumstances where the landlord dies during a year of assessment.

For further information, please click: https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-03-04.pdf

If you are a landlord of rented residential property in Ireland seeking comprehensive tax advice or looking to regularise your tax affairs, and wish to deal with a Property Taxes Specialist please contact us at queries@accountsadvicecentre.ie

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.

Finance Bill 2025, Increased Revenue Powers, Income Tax and Corporation Tax

The Minister for Finance, Paschal Donohoe, published Finance Bill 2025 today, 16th October 2025, giving effect to the tax measures announced in Budget 2026 of last week.

Section 31 of the Bill introduces a new Section 959AX TCA 1997 to Part 41A TCA 1997.

This legislation gives the Revenue Commissioners the authority to estimate corporate and income tax liabilities and serve notice in writing specifying the estimated tax due in circumstances where the taxpayer fails to file the required Tax Return within the specified return date. The estimated figure will be based on the higher of (i) the average amount of tax due on the two most recent tax returns, or (ii) €1,000.

Section 90 of the Bill amends the wording in Section 811C (4)(a) TCA 1997 

This strengthens Revenue’s powers to counteract tax avoidance by expanding the scope of the legislation.  The amendment extends and enhances the Revenue Commissioners’ authority to withdraw or deny, at any time, tax advantages arising from tax avoidance transactions.  It specifically pertains to situations where an individual either takes or fails to take any other action, which directly or indirectly, seeks to obtain a tax advantage as a result of a tax avoidance transaction.

Section 93 of the Bill amends Section 638A TCA 1997.  

This extends the transfer of rights and obligations under company mergers or divisions to include those arising under Part 4A TCA 1997. It provides that the Pillar Two compliance obligations, including tax payments and filings, will transfer to the successor company or companies, under a merger or division.

Section 94 of the Bill amends Section 869 TCA 1997

As you’re aware, Section 879 TCA 1997 provides that the Revenue Commissioners may issue a notification to a taxpayer requesting that individual to deliver a tax return, in any tax year. Section 94 of the Bill amends Section 869 TCA 1997 allowing Revenue to issue such Income Tax Return Notices electronically i.e. via MyAccount or ROS.

Section 95 of the bill amends Section 959AA of the TCA 1997

This amendment expands the Revenue Commissioners’ power to make or revise a tax assessment outside the standard four year time limit, so as to give effect to a Mutual Agreement Procedure outcome under a Tax Information Exchange Agreement, by virtue of section 826(1B) TCA 1997. Currently, under existing rules, a Revenue officer is allowed to make such an extended assessment in circumstances where a MAP is reached under a double taxation agreement.

Section 98 amends Section 959I TCA 1997

Section 98 amends Section 959I TCA 1997 by inserting a new subsection 6 to clarify that a “chargeable person” may still make a claim for an allowance, deduction or relief even where that tax return is filed after the specified deadline date, unless, another provision in the Taxes Acts explicitly prevents the making of such a late claim.

For further information, please click: https://www.gov.ie/en/department-of-finance/press-releases/minister-donohoe-publishes-finance-bill-2025/

If you have received a notification of a level 1 or 2 Revenue Compliance Intervention or a level 3 Investigation into your or your company’s tax affairs, and wish to deal with a Revenue Compliance Tax Specialist, please contact us.  We also carry out tax health checks for companies and individuals to assist in identifying potential areas of exposure. For a full professional taxation advice and compliance service from qualified and experienced Chartered Tax Advisors, please contact us at queries@accountsadvicecentre.ie

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.

Tax Credits. Budget 2026 Ireland. Income Tax. Personal Taxes. Tax Reliefs

Budget 2026 introduced a wide range of updates across Ireland’s tax system. The following Tax Credits and Reliefs are being extended:

1. The Rent Tax Credit is being extended for a further three years.  It is due to expire at the end of 2028.

For further information, please click link: https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/land-and-property/rent-credit/index.aspx

2. The income tax deduction for landlords retrofitting properties is extended for another three years.  It is available for works carried out up to 31st December 2028.

For further information, please click link: https://www.revenue.ie/en/property/rental-income/deduction-for-retrofitting-expenditure/index.aspx

3. The Income Tax Exemption for households which sell electricity from micro-generation back to the grid is extended for a further three years to 31st December 2028.

For further information, please click link: https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-07/07-01-44.pdf

4. The Mortgage Interest Tax Relief is being extended for a further two years. Relief will be available at the standard Income Tax rate, with the maximum 2025 relief capped at €1,250 per property and €625 per property for 2026.

For further information, please click link: https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/land-and-property/mortgage/index.aspx

5. The USC Concession for medical card holders will be extended until 31st December 2027.

For further information, please click link: https://www.revenue.ie/en/corporate/press-office/budget-information/current-year/budget-summary.pdf

6. The €5,000 Vehicle Registration Tax (VRT) Relief for new electric vehicles is extended until 31st December 2026.

For further information, please click link: https://www.gov.ie/en/department-of-finance/speeches/statement-by-minister-donohoe-on-budget-2026/

7. Employee Benefit-in-Kind Relief for employer provided vehicles (for cars in categories A-D and to all vans) is to be extended, on a tapered basis, until the end of 2028.

For further information, please click link: https://www.revenue.ie/en/corporate/press-office/budget-information/current-year/budget-summary.pdf

8. Special Assignee Relief Programme (SARP) has been extended by 5 years to 2030.

For further information, please click link: https://www.revenue.ie/en/corporate/press-office/budget-information/current-year/budget-summary.pdf

9. Key Employee Engagement Programme (KEEP) has been extended to 31st December 2028 subject to approval from the European Commission.

For further information, please click link: https://www.revenue.ie/en/corporate/press-office/budget-information/current-year/budget-summary.pdf

10.Foreign Earnings Deduction (FED) has been extended by 5 years to 2030.

For further information, please click link: https://www.revenue.ie/en/corporate/press-office/budget-information/current-year/budget-summary.pdf

Accounts Advice Centre provides a top tier level service for all personal income tax matters, from filing tax returns to offering specialist advice on complex taxation issues. We have over thirty years experience providing expert tax advice, tailored for individuals and their families. For a full professional taxation advice and compliance service, please contact us at queries@accountsadvicecentre.ie

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.

Budget 2026. Business Taxes. Corporation Tax. R&D Tax Credits. Corporate Taxation. Capital Gains Tax.

Today, Tuesday, 7^th October 2025, the Minister for Finance, Paschal Donohoe and the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation, Jack Chambers presented Budget 2026.  In this series of articles, we have outlined some of the tax changes which we consider most relevant under the following headings (a) Personal Tax, (b) Business Taxes including Capital Gains Tax, (c) VAT, (d) Housing/Property, (e) Agri-taxation, (f) Investments and (g) Global Mobility and Employment.

BUSINESS TAXES

• As you’re aware, the Revised Entrepreneur Relief provides for a 10% rate of Capital Gains Tax on certain gains arising from the disposal of qualifying business assets. Previously, the lifetime limit was €1 million.  Today, the Minister announced that the lifetime limit on capital gains qualifying for CGT Revised Entrepreneur Relief will be increased to €1.5 million, from 1^st January 2026.

• A new exemption from the 1% stamp duty on acquisitions/transfers of shares in Irish registered companies is being introduced. It will apply to the shares of companies with a market capitalisation of below €1 billion that are admitted for trading on certain regulated markets. It will replace the existing stamp duty exemption for companies trading on the Euronext Growth Market.  The exemption is set to expire on 31^st December 2030.

• Previously, Special Assignee Relief Programme (SARP) was an income tax exemption for assignees of 30% of their relevant employment income between €100,000 and €1 million, provided certain criteria were met.  Budget 2026 extended the Special Assignee Relief Programme (SARP) for a further five years, to 31^st December 2030.   From 1^st January 2026, in order to qualify, new claimants of the Relief must have a minimum annual salary of €125,000.   This amendment will not affect existing claimants.  They can continue to avail of SARP, as before, in 2026 and further relevant years.  Finance Bill 2025 is expected to outline the simplification of certain relevant administrative requirements.

• Foreign Earnings Deduction (FED) relief has been increased to €50,000 from 1^st January 2026 and extended for a further five years, to 31^st December 2030.  The Philippines and Turkey have been included in the list of qualifying countries.  Finance Bill 2025 is expected to outline administrative amendments.

• The Key Employee Engagement Programme (KEEP), which was due to expire on 31^st December 2025.  Finance Bill 2025, however, will provide for an extension to this Income Tax exemption until the end of 2028, subject to European Commission approval.  KEEP provides for an exemption from Income Tax, Universal Social Charge and PRSI for any gain arising on the exercise of a share option by a qualifying individual in a qualifying company.

• Budget 2026 announced that the Research & Development (R&D) tax credit will rise to 35%.  The first year payment threshold will increase from €75,000 to €87,500.  An administrative simplification measure was also announced. This will allow 100% of an R&D employee’s emoluments as qualifying costs where at least 95% of that individual’s time is spent on qualifying R&D activities.  This update will provide more certainty and a reduction in administration for companies.

• The Digital Games Tax Credit, which provides for a 32% credit on qualifying expenditure up to €25 million, is being extended by six years to 31^st December 2031. Eligibility is being expanded to allow claims in relation to certain post‑release activities which are subject to qualifying conditions as well as EU approval.

• The Section 481 Film Tax Credit, which currently provides for a 32% credit on qualifying expenditure up to €125 million on certain productions, has been enhanced to provide a new 40% rate for productions with a minimum of €1m of eligible expenditure on relevant visual effects work, up to a maximum of €10 million eligible expenditure per production.  As the Film Tax Credit is an approved State aid, the enhancement measure will be subject to EU approval.

• Finance Act 2024 introduced a Participation Exemption for foreign dividends received, on or after 1^st January 2025, from subsidiaries in EU/EEA and double tax treaty partner jurisdictions.  Today, the Minister announced that several changes to the exemption will be provided for in Finance Bill 2025.  These include (i) broadening the geographic scope beyond dividends paid from subsidiaries in the EU/EEA and double tax treaty partners to include qualifying dividends received from jurisdictions that apply a non-refundable dividend withholding tax.  Other changes include (ii) reducing the period for which companies must have been resident in a jurisdiction within the geographic scope of the relief from five to three years, before paying a dividend, as well as (iii) providing clarification that the acquisition of a shareholding is not deemed to be the acquisition of a business asset for the purposes of the exemption.

• Following an extensive consultation, an action plan for the reform of Ireland’s taxation regime for interest was published today.  The primary request of stakeholders, arising from public consultation, was for a fundamental reform of the framework for the taxation and deductibility of interest.  The Action Plan sets out the timeline for phase one and nine other areas for potential reform under future phases are identified.  The main proposals put forward include: (a) an alignment of the tax treatment between trading and passive interest income, (b) the introduction of a renewed and simplified test for the deductibility of interest for corporation tax purposes as well as (c) the widening of the scope of interest deductibility to include ‘interest equivalents’.

• An extension to the Accelerated Capital Allowances schemes for energy efficient equipment until 31^st December 2030 was announced today.  This provides for an accelerated deduction of 100% in year one for business expenditure incurred on certain energy efficient equipment.

• The Accelerated Capital Allowances Scheme for Gas Vehicles and Refuelling Equipment was also extended to 31^st December 2023.

• The Minister announced that a public consultation on withholding tax will be launched soon to explore opportunities to modernise, digitalise and further expand the scope of withholding taxes.  A joint Department of Finance and Revenue public consultation is expected to be launched soon.

For further information, please click: https://www.revenue.ie/en/corporate/press-office/budget-information/current-year/budget-summary.pdf

At Accounts Advice Centre, we provide accurate and professional tax advice so you have the full and complete information you need to make the right decisions for you and your business.  We ensure your accounts and tax returns comply with the correct accounting standards and tax requirements.   To discuss what we can do for you with a qualified Chartered Tax Adviser, please contact us at queries@accountsadvicecentre.ie

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.

Corporation Tax Returns. CT1 Forms. Business Tax Advisors. Tax Deadline

On 27th August 2025, Revenue updated the The Tax and Duty Manual Part 38-02-01 to include links to the following Tax and Duty Manuals:

1. Completion of Corporation Tax Returns Form CT1 2024
2. Completion of Corporation Tax Returns Form CT1 2023

If you require assistance filing your CT1 Forms, please contact us at queries@accountsadvicecentre.ie

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.

Research and Development, R&D Tax Credit, Corporation Tax. Revenue Audits

The Research and Development Tax Credit provides a 30% tax credit for all qualifying R&D expenditure.  It increased from 25% to 30% for accounting periods commencing on or after 1^st January 2024.  There is expected to be a further increase in Budget 2026.  It’s important to keep in mind that this tax credit is available in addition to the corporation tax deduction available for expenditure incurred on R&D.  Therefore, this can result in an effective tax saving of 42½%; being a 12½% corporation tax deduction plus a 30% R&D tax credit.

So, what is Research and Development (R&D)?

The Revenue Commissioners have outlined criteria, in their guidelines, to enable companies determine whether their activities qualify for the tax credit.

According to Revenue’s most recent guidance material, “to qualify for the R&D Tax Credit, a company’s R&D activities must:

1. involve systematic, investigative or experimental activities

2. be in the field of science or technology

3. involve one, or more, of the following categories of R&D:

• basic research
• applied research
• experimental development

4. seek to make scientific or technological advancement and

5. involve the resolution of scientific or technological uncertainty.”

For further information please click https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-29/29-02-03.pdf

Qualifying R&D expenditure includes:

• qualifying operational R&D costs and

• qualifying R&D plant and equipment costs

• There is also a separate R&D tax credit in relation to buildings and structures.

Recent Amendments

• On 13^th January 2025, Revenue updated their guidance material. Section 766C TCA 1997 was amended to increase the first instalment threshold amount from €50,000 to €75,000, in relation to accounting periods commencing on/after 1^st January 2025.

• On 7^th July 2025, Revenue released a four part video, providing guidance on how to complete the R&D panels in the 2024 CT1 Form.

R&D Video Guidance

Did you know that the Revenue Commissioners have released a four part guideline video on the completion of the Research & Development (R&D) panels on the Form CT1 2024?

The videos focus on:

1. Part 1 shows you how to correctly complete the sections for grants and subcontractor costs.

2. Part 2 shows you how to complete the relevant panels on the Form CT1 in relation to instalments from 2022 and 2023. It also covers how to claim for carried forward amounts under section 766(4B) TCA 1997.

3. Part 3 shows you how to make claims under section 766C TCA 1997.

4. Part 4 shows you how to claim group relief. It also outlines some of the common errors in the R&D panels that may arise when completing the 2024 Form CT1.

Please click link: https://www.revenue.ie/en/companies-and-charities/reliefs-and-exemptions/research-and-development-rd-tax-credit/how-to-videos.aspx

Based on our professional experience, in recent years, the Revenue Commissioners are increasingly carrying out audits in relation to a R&D tax credit claims.  Accounts Advice Centre provides a full and comprehensive audit support service.  For further information, please contact us at queries@accountsadvicecentre.ie

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.

US Taxes, USA Business Tax provisions, One Big Beautiful Bill

On 4^th July 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law.  It introduced several updates to federal informational reporting requirements.

1099-MISC and 1099-NEC

• It significantly raises the reporting threshold for payments made on Forms 1099-NEC and 1099-MISC.

• From 1^st January 2026, businesses will only be required to file a 1099 if their non-employee or miscellaneous income exceeds the threshold amount of $2,000.

• For those individuals working on a freelance or independent contractor/consultancy basis, it’s important to remember that you must report earnings, on your Form 1099-NEC, which have not been reported on form W-2.

• For consultants/contractors/freelancers is also important to keep in mind that while your clients won’t be sending you a 1099-NEC in relation to payments of under $2,000, you’re still responsible for reporting that income in your tax return.  For the client, however, it means that if they pay a contractor/consultant/freelancer less than $2,000 in a calendar year, the general rule is that they won’t be required to issue a Form 1099-NEC.

100% Bonus Depreciation

The One Big Beautiful Bill permanently restores the 100% bonus depreciation for qualifying business property placed in service, on/after 19^th January 2025.  Please be aware, however, if your business had a contract to acquire property prior to 20^th January 2025, the property will not qualify for the 100% bonus, even in situations where the actual acquisition happens after that date.

What is “Bonus Depreciation”?

It’s an additional first-year depreciation to incentivise businesses to invest in qualifying property.  

What does “placed in service” mean?

It means that the asset must be ready and available for its intended business use. For clarity, if you have purchased or financed equipment but it’s not ready and available for the intended business use, then it will not trigger the allowable deduction.

How is “qualifying property” defined?

Qualifying property includes property used in a trade or business or for the production of income and meets the following criteria:

• It must be tangible.

• It must be depreciable under the Modified Accelerated Cost Recovery System (MACRS)

• It must have a recovery period of 20 years or less.

• It must be placed in service after 19^th January 2025

• It can be purchased new or second hand.

• It includes computer systems, equipment, furniture, machinery, certain vehicles, etc.

• The phase-down percentages still apply to some assets, including property that was acquired on/before 19^th January 2025, even if it wasn’t placed in service until after that date.

• The Bonus Depreciation is not limited by taxable income.  Therefore, it can create or increase a net operating loss.

Enhanced Section 179 Deduction Limits

As you’re already aware, under Section 179 businesses can deduct the full purchase price of “qualifying property” during the tax year as opposed to capitalizing the expenses and depreciating them over several years. The new legislation introduced on 4^th July 2025, gives a major boost to the Section 179 deduction.  Under the previous limits for the 2025 tax year, businesses could only expense up to $1.25 million in qualifying property using Section 179.  Beginning in 2025 tax year, the increased deduction limit for certain depreciable business assets has doubled to $2.5 million.

With regard to the Higher Phase-Out Threshold, the deduction starts to phase out for total qualifying property costs over $4 million.  The previous limit was $3.13 million.

In summary, businesses can now deduct up to $2.5 million until their equipment purchases exceed $4 million.  Once purchases reach $6.5 million, the deduction phases out completely.

The OBBBA enhances section 179 expensing for tax years starting after 31^st December 2024.  This means that the changes will apply retroactively to qualifying property placed in service on or after 1^st January 2025.

What’s the difference between Bonus Depreciation and Section 179?

While you may think the 100% bonus depreciation is similar to a Section 179 deduction, you must keep in mind that Section 179 only allows eligible purchases up to $2.5 million to be fully expensed (with a phase-out once purchases exceed $4 million) while there is no dollar limit on the Bonus Depreciation.

For further information, please click: https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions

If you are seeking a comprehensive and professional U.S. tax advisory of compliance service from U.S. Tax Specialists, including U.S. tax filing, please contact us at queries@accountsadvicecentre.ie

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.