On 6 October 2026, the Irish Minister for Finance published the Budget 2027 Taxation Measures, detailing a comprehensive package of tax reforms designed to support economic growth, enhance fairness, and align with international obligations including OECD Pillar Two. The measures cover personal income tax adjustments, corporate tax incentives, VAT modifications, and environmental levies, and will take effect from 1 January 2027 unless otherwise stated.
Key Takeaways
- Personal Income Tax Relief: The standard rate band is widened and tax credits increased to reduce the burden on middle-income earners, with specific enhancements for single parents and carers.
- Corporate Tax Incentives: Enhanced R&D tax credit rates and a new digital gaming credit are introduced to foster innovation, while the 15% minimum effective tax rate for large multinationals is implemented in line with OECD Pillar Two.
- Green Taxation: Carbon tax increases by €7.50 per tonne to €56, with revenues ring-fenced for retrofitting and social welfare protection; VAT reductions for solar panels and heat pumps are extended.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement