Budget was a missed opportunity to simplify Irish corporate tax code and ease burden on business

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Budget News

Corporation-Tax,Pwc,Department-Of-Finance

Ireland needs a business environment that is attractive and competitive, and having a simpler tax system that is easy to navigate is a critical component

Minister for Finance Jack Chambers and Minister for Public Expenditure and Reform Paschal Donohoe with their documents before presenting Budget 2025. Photograph: Paul Faith/AFP via Getty Imagessystem is weighing down businesses with regulation and administration like never before. Ten years of international tax reform has resulted in a tsunami of additional tax rules and disclosures. A fear of tax avoidance has resulted in more restrictive income and capital tax reliefs.

We urge the next government to introduce a tax simplification roadmap, clearly setting a plan over a number of years. It will take time to achieve, and business must be cognisant of that fact. However, if it is to deliver real outcomes, it should be an all-hands-on-deck approach Also welcome is the recently launched public consultation on the tax treatment of interest in Ireland. However, this is at a very early stage and is likely to take years before the benefits of cleaning up the multilayered interest rules will bear fruit.

Companies can also take action today to simplify their approach to tax, particularly with more tax disclosures on the way. They need to invest in their technology and data strategies, transform how they work and prepare to adopt a digital future.

 

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