Feedback statement published on the reform of Ireland’s taxation regime for interest

Last week, Tánaiste and Minister for Finance, Simon Harris TD, published a Feedback Statement for Phase One of reform of Ireland’s Taxation regime for Interest. The consultation period will run until 16 January 2026. It follows on from the Public Consultation on the Tax Treatment of Interest in Ireland which had been launched in September 2024 and an Action Plan for the reform of Ireland’s taxation regime for interest published by the Department of Finance on Budget Day. You can read the Institute’s response (under the auspices of the CCAB-I) to that earlier consultation here.

The phase one feedback statement outlines a strawman proposal which sets out a possible approach for how the underlying framework for the taxation and deductibility of interest in Ireland may be reformed.  The key areas being examined in the consultation are as follows:

• Scope of phase one reforms
• Outline of new interest deductibility rule for corporation tax
• Transfer pricing
• Enhancements of the Interest Limitation Rule
• Transitional and simplification measures
• Taxation of interest income
• Taxation and deduction of interest equivalents

The Institute will be responding to this consultation under the auspices of the Tax Committee South of CCAB-I. If you would like to submit views for our consideration, you can do so by emailing tax@charteredaccountants.ie.