Budget 2026

Cróna Clohisey, Director of Members & Advocacy commented:  “Today’s Action Plan places a welcome emphasis on controlling what we can in a volatile global environment. It is encouraging to see the announcement of a ‘Red Tape Challenge’ to reduce regulation for SMEs. Combined with the existing SME Test, we hope to see reduced cost and regulatory burdens so businesses can spend more time innovating and creating jobs. Our research reinforces this urgency; 57% of SMEs surveyed by us this year identified regulatory compliance burdens as a key area in need of government support.  “The policy focus on examining options to boost the competitiveness of the R&D Tax Credit is crucial for ensuring that Ireland remains a top destination for innovation, attracting both domestic and international companies. The R&D tax credit regime critically requires enhancements for greater uptake and access for SMEs and we have called for these in the CCAB-I Pre-Budget Submission.   “The announcement of a National Artificial Intelligence Office reflects our longstanding view that AI is a powerful opportunity to reduce administrative burdens, enhance data driven decision making and bolster competitiveness. The NAIO will hopefully be a much-needed forum to shape the future landscape for business in Ireland. “While the direction of the Action Plan is welcome, as is a whole-of-Government commitment, delivery will be critical. The implementation framework with its broad timelines is a useful element of the plan, however businesses also need to see accountability and transparent implementation so that these policy objectives translate into progress on the ground.”  

On Wednesday, we had the opportunity to meet with Minister for Finance, Paschal Donohoe, and his officials to discuss the CCAB-I’s Pre-Budget 2026 submission. Our conversation focused on several key areas critical to Ireland’s competitiveness and business environment. We highlighted the work to date through the Tax Administration Liaison Committee and the Business Tax Stakeholder Forum on tax simplification, as well as the importance of tax certainty for businesses. We also highlighted the critical need for investment in infrastructure such as housing and childcare.   In terms of the specific tax measures we raised with the Minister, we discussed the following: Enhanced reporting requirements for employers – we highlighted the operational challenges of real-time reporting of in-scope tax free benefits and expenses, recommending periodic returns on either a monthly or quarterly basis. Special Assignee Relief Programme (SARP) – We stressed the importance of SARP in attracting global talent and called for its expansion to include SMEs and benchmarking our relief against comparable regimes in other jurisdictions. Participation Exemption for certain foreign dividends – While welcoming recent progress, we advocated for further enhancements, including completing work on a corresponding foreign branch exemption. Minister Donohoe reaffirmed the Government’s commitment to certainty and stability, which are essential for fostering a thriving business environment for both domestic and international businesses. We look forward to continued engagement to ensure Ireland remains a best-in-class location for business.

It was a busy week in Government Buildings with the publication of both the Summer Economic Statement and the revised National Development Plan.  5 key takeaways from our team The overall package of tax reductions and public spending increases for Budget 2026 will amount to €9.4 billion, an increase of 7.3 percent on the revised 2025 General Expenditure Ceiling, with the total tax package amounting to €1.5 billion. At a time of great uncertainty at a global level with the prospect of increased US tariffs looming over the Irish economy, and the deterioration of the short-term outlook in Ireland, careful planning will be crucial to ensure any corresponding economic slowdown is managed.   Infrastructure was the only show in town this week. Data from the Irish Fiscal Advisory Council has identified a 25 percent infrastructural gap between Ireland and its peer countries. This week’s commitment to an additional €34 billion in additional capital spending for the remainder of the decade is critical if Ireland is to narrow this substantial gap.     The infrastructure challenge is a cross-government one, so the solutions must be too. The National Development Plan outlines the importance of proper governance and appraisal of capital expenditure in ensuring public funds are deployed efficiently and impactfully. The establishment of the Accelerating Infrastructure Taskforce should streamline the various government agencies responsible for implementing the Government’s ambitions. This is the critical success factor for Ireland – delivery of an infrastructure fit for an advanced economy with global ambitions. Key to this will be delivery of an appropriate return on investment for the government’s key stakeholder – its taxpayers.   Housing is only one part of the puzzle.1 in 4 SMEs surveyed by Chartered Accountants Ireland in April reported that their business has lost employees or seen prospective employees unable to take a role due to the unavailability of affordable housing. So, it is encouraging to see such significant emphasis on addressing this persistent challenge over the next five years. That said, the critical levers to ensuring Ireland’s competitiveness also include energy and water, so these significant deficits in the State’s infrastructure need to be addressed holistically if Ireland is to fully realise its ambition of becoming a place where businesses can thrive.   Among the most frequent barriers encountered by Chartered Accountants Ireland’s 40,000 members is access to childcare, and we have lobbied extensively on this issue. Despite being featured as a key commitment in the Programme for Government, the revised National Development Plan lacks detail on how more childcare places will be created for working parents. Greater priority must be given to an issue that so fundamentally affects the labour market.  The Government this week also released the Tax Strategy Group papers, and we will have full coverage of these documents in Tax News this coming Monday.