Government publishes action plan for reform of taxation regime for interest

Following an announcement made on Budget Day, the Department of Finance has published an Action Plan for the reform of Ireland’s Taxation Regime for Interest. The Action Plan was designed considering the feedback received during the comprehensive public consultation on the tax treatment of interest in Ireland which was launched in September 2024.

The responses to the public consultation outlined the need for a fundamental overhaul of the existing framework governing the taxation and deductibility of interest. The Action Plan outlines a phased approach for implementing reforms aimed at creating a more streamlined system that enhances Ireland’s competitiveness while safeguarding the tax base.

A feedback statement will be issued in November, which will focus on the underlying framework for the taxation and deductibility of interest in Ireland. The responses will inform legislative changes in Finance Bill 2026 and further reform areas will be addressed in subsequent phases.