Latest Tax news

In Irish news, Revenue has announced plans for the roll out of electronic invoicing for VAT and real time VAT reporting, and Revenue has also provided clarification on the 2024 income tax return disclosure requirements for employer PRSA contributions. In UK news, the Institute has responded to the House of Lords call for evidence on the latest Finance Bill draft clauses and the Institute recently participated in an event which explored the complex issues arising from cross-border working. In International news this week, the European parliament proposes a simplified tax architecture to benefit EU citizens and businesses. Ireland 1. Revenue has announced plans for the implementation of the VAT in the Digital Age (ViDA) requirements. 2. Read about the additional information provided by Revenue on the disclosure of employer PRSA contribution.   UK 3. In our submission to the House of Lords inquiry into Finance Bill 2025-26, the Institute continues to recommend that the Government needs to reframe its policy changes on agricultural property relief and business property relief. 4. The Institute was represented last week at an event in London which examined the complexity of global mobility, including tax implications and other key considerations.   International 5. The European Parliament has adopted a resolution on the role of simple tax rules and tax fragmentation in European competitiveness. Keep up to date with all the latest Irish, UK, and international tax developments through Chartered Accountants Ireland’s Tax Newsletter. Subscribe to the Tax News by updating your preferences in MyAccount. You can also read this week’s Cross-border developments and trading corner here.  

Earlier this week, the Institute’s Northern Ireland Tax Committee wrote to new the Exchequer Secretary to the Treasury, Dan Tomlinson MP to highlight a range of tax policy and tax administration recommendations and concerns ahead of the next Budget on Wednesday 26 November. In our pre-budget submission, the Institute continues to press the Government to reframe the draft legislation on agricultural property relief and business property relief given the disproportionate impact this will have on family-owned farms and businesses in Northern Ireland (NI). The Institute’s UK Tax Manager, Leontia Doran, is scheduled to deliver oral evidence on this issue on Monday 20 October to the House of Lords Finance Bill Sub-Committee as part of its inquiry into the draft Finance Bill 2025-26 clauses. The Institute is telling the Government that it is not too late to reframe this policy ahead of April 2026. However, if the Government is not willing to do so, we continue to recommend that a specific carve out from the rules is included in the draft legislation to protect NI. Given how deeply connected agriculture is throughout the island of Ireland, the unique circumstances of NI farmers cannot be ignored and must be addressed. The cross-border nature of NI’s agri-food industry, where Ireland is its largest export market, means that NI needs to remain competitive in order to be able to serve its largest market, particularly if its dual market access to the EU is to grow to its true potential. This will only be achieved via a coherent tool kit of economic policies, not the least of which should include pro-business and pro-family succession tax reliefs. It is for this reason that the Government should exclude NI from these changes. The Committee also highlighted a range of other issues in the submission as follows: The campaign to reduce the rate of corporation tax in NI, The tax burden and complexity arising from cross-border and remote/hybrid working on the island of Ireland, Tax simplification and the lack of progress in this area, Making Tax Digital for Income Tax and the implementation of mandatory tax adviser registration from 1 April 2026, and The ongoing need for climate and environmental objectives to feature significantly in UK budgets, which includes a range of tax policy recommendations.

Last week the European Parliament adopted a resolution containing suggestions for reforms to the tax architecture to boost competitiveness while continuing to address tax avoidance and evasion. The resolution will feed into the ongoing work on legislative simplification, with a dedicated proposal of the European Commission expected to be released in early 2026.

The EU has published an updated list of non-cooperative tax jurisdictions. While no new jurisdictions have been added to the list in Annex I,  Viet Nam has been removed from Annex II due to its successful implementation of the OECD’s BEPS minimum standard on Country-by-Country Reporting.  Annex II reflects the countries engaged in constructive cooperation with international partners.

The OECD Forum on Tax Administration will host a hybrid event on enhancing tax certainty on 31 October 2025 . The event will allow tax policymakers and administrations, business representatives, and other stakeholders to assess the tax certainty agenda and work towards further improvements in dispute prevention and dispute resolution. Registration for the event closes on 15 October 2025.

On 16 October 2025 the EU parliament’s subcommittee on tax matters will hold an Interparliamentary Committee Meeting on "The taxation of digital activities at national and international level, in light of ongoing developments at OECD/G20 level."

New research from the ESRI indicates that, at the household level, measures introduced in Budget 2026 are expected to lead to modest income reductions next year, averaging around 2 percent of disposable household income. In a press release issued last week, the ESRI noted that the fiscal stance as outlined in the current and recent budgets is arguably too loose, and the reliance on unpredictable corporation tax receipts is a vulnerability.  The fiscal stance refers to the balance between government spending and taxation, comparing the amount which the government injects into the economy through expenditure to the amount which it withdraws through taxes.

From 1 January 2026, employees aged over 22 who earn €20,000 or more annually and are not currently contributing to a retirement savings plan through payroll will be automatically enrolled in the state-sponsored MyFutureFund scheme. The Government confirmed an allocation of €154 million in Budget 2026 to fund its contributions to the new MyFutureFund scheme. The Department of Social Protection has issued a press release providing details of upcoming free information webinars being run in November which will provide details and guidance to employers.

The Department of Finance published additional reports on Budget Day 2026 providing a review of various taxation measures. These included a Funds Review Implementation Plan, a report on the Use of Carbon Tax Funds, a review of the Foreign Earnings Deduction and a review of the Special Assignee Relief Programme.

As part of the Budget 2026 publications, the Department of Finance has published the first review of the Rent Tax Credit. Introduced in the Finance Act 2022, the Rent Tax Credit (RTC) has been reviewed using administrative data from its initial years of operation, 2022 and 2023. The review presents early findings and draws preliminary conclusions on the credit’s effectiveness and value for money. Some of the main findings from the review include: The most represented cohorts among RTC claimants are young adults between 21 and 40 years old, residents in Dublin, and single persons, 7 per cent of taxpayer units claiming the RTC had an income over than €100,000 in 2022, and The estimated cost for 2024 and 2025 of the credit is approximately €350 million in each year, which would make the RTC one of the top ten costing tax expenditures for 2024.

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.

In case you missed it last week, you can find our full coverage of Budget 2026 in our Special Budget 2026 Tax Newsletter which issued last week following the announcement of this year’s package. You can also find more information on all-things Budget in the Institute’s Budget 2026 Hub.