On 21 September 2026, EY Ireland published a strategic outlook on the upcoming Budget 2027, emphasizing how targeted tax policy can strengthen Ireland’s global competitiveness. The analysis, authored by Tax Partner Eoin O’Reilly, argues that the budget presents a pivotal moment to align fiscal incentives with national priorities in talent retention, research and development, entrepreneurship, and artificial intelligence adoption. With Ireland holding the EU Presidency, the report urges the government to leverage tax credits, accelerated capital allowances, and simplified compliance frameworks to attract high-value investment and sustain indigenous innovation ecosystems. The piece references the OECD Pillar Two global minimum tax context and the need for Ireland to differentiate through quality of incentive design rather than headline rates.
Key Takeaways
- Enhanced R&D Tax Credit Architecture: The report recommends expanding the R&D tax credit to cover a broader range of qualifying activities, including AI model training and data infrastructure costs, while increasing the credit rate for collaborative projects with universities and research institutes.
- Talent-Focused Fiscal Measures: Proposals include a refundable tax credit for hiring PhD-level researchers, expanded Key Employee Engagement Programme (KEEP) share scheme limits, and a new “Innovation Visa” tax relief to attract global talent in critical technology sectors.
- Entrepreneurship and Scaling Incentives: The analysis calls for CGT entrepreneur relief reform, a dedicated scaling fund with tax-matched investment, and simplified VAT grouping rules for high-growth digital service exporters.
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