The Platform for Collaboration on Tax is compiling a concise set of high-level principles that are designed to help navigate the policy, legislative and administrative issues related to tax incentives. It has published a draft version of its Tax Incentives Principles as it seeks feedback on its contents from tax policymakers, practitioners and experts by 10 February 2025.

The European Parliament’s Subcommittee on Tax Matters (FISC) hosted a public hearing on the impact of taxation on gender equality in the EU. The hearing examined tax policies that are considered obstacles to promoting gender equality and tax policies that can contribute to advancing gender equality.

Kenya has deposited its instrument of ratification for the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (BEPS Convention). The BEPS Convention will enter into force on 1 May 2025 for Kenya.

The Co-Chairs of the Inclusive Framework on BEPS have provided an update on the progress made in developing a final package for Pillar One of the Two-Pillar Solution.

The OECD has released the updated GloBE Information Return (GIR) which incorporates clarifications on completing the GIR. It also includes a template to use to notify jurisdictions that they will receive the GIR through exchange of information. Each constituent entity of an MNE Group is required to annually file a GIR with the tax administration of the jurisdiction where it is located to support the administration of the GloBE rules.

In Irish news, Revenue has published preliminary results for 2024 and the Department of Finance has published final Exchequer figures for 2024. In UK news, we issue key reminders ahead of the 2023/24 online self-assessment filing deadline on Friday 31 January 2025 and update you on the joint response from the Professional Bodies, including this Institute, to a HMRC letter on service levels. In International news, the OECD have released a pricing tool for the implementation of Amount B under Pillar Two.      Ireland Read the Revenue Commissioners published preliminary headline results for 2024. Exchequer figures for 2024 show further growth in tax revenues.   UK Read our key reminders ahead of the 2023/24 online self-assessment filing deadline on Friday 31 January 2025. The Professional Bodies have jointly responded to a HMRC letter on service levels.   International The OECD have released a pricing tool and factsheets to facilitate the implementation of Amount B under Pillar Two. 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 post EU exit corner here.

For 2024, the Irish Exchequer recorded a surplus of €12.8 billion, up €11.6 billion from 2023, largely reflecting the transfer of once-off receipts from the Apple case. Total tax receipts of €108 billion were collected in 2024, with the main sources of income broken down as follows: Income tax receipts of €35.1 billion were collected. This figure is €2.2 billion, or 6.6 percent ahead of 2023, reflecting earnings growth and strong employment. Corporation tax receipts of €39.1 billion were collected. This figure is €15.2 billion, or 63.9 percent ahead of the previous year, with the bulk of the increase arising from the Apple case. VAT receipts of €21.8 billion were collected. This figure is €1.5 billion, or 7.3 percent ahead of 2023, reflecting solid consumer spending. Commenting on the figures, Minister for Finance Jack Chambers TD said: “The end-year figures are affected by one-off receipts arising from the Court of Justice of the European Union and so it is important to dig below the surface. When we do this, we see solid growth in income tax and VAT receipts last year; these trends demonstrate the underlying strength of our economy. Looking ahead, there are clearly identifiable risks on the horizon. Navigating through these will require a greater focus on competitiveness and on getting the basics right – especially in areas like energy, water, transport and housing. This is why Government is committed to using the proceeds of the CJEU ruling to expand infrastructure in these critical areas.”

Last week, Revenue published preliminary headline results for 2024, showing record-breaking collections for tax and duties of over €107 billion, with a further €30 billion collected on behalf of other government departments and EU Member States. Income tax, corporation tax and VAT were the largest contributors to the tax take in 2024 at €35.1 billion, €39.1 billion and €21.8 billion respectively, all higher than in 2023. Combatting non-compliance remains a key priority for Revenue, in addition to confronting various tax-avoidance schemes. Some of the highlights of this work during 2024 were as follows: Revenue completed almost 311,000 audit and compliance interventions yielding €591 million. Revenue settled 256 tax avoidance cases yielding €46 million. Revenue secured 20 criminal convictions for serious tax evasion and fraud and published 74 tax settlements in the list of tax defaulters. Revenue also reports that the introduction of real-time payroll reporting has led to a year-on-year increase in the number of PAYE taxpayers managing their own tax affairs. During 2024 Revenue processed nearly 1.4 million income tax returns for PAYE for the 2023 year of assessment. Revenue reports that during the first week of 2025, over 175,000 PAYE taxpayers have already filed a return in respect of the 2024 year of assessment.   Looking ahead to property tax pay and file obligations, Revenue reports that the Residential Zoned Land Tax (RZLT) will come into force in 2025 and will apply to land which is zoned and serviced for residential use. By 31 January 2025, local authorities will publish the revised map for 2025, showing land that is within the scope of RZLT and Revenue’s RZLT registration portal will open at that time. RZLT returns and liabilities will be due in May 2025. Separately, Revenue also published a statistical infographic on the Debt Warehouse Scheme, which is available here and which shows that 94 percent of tax debt is either settled or secured by Phased Payment Arrangements.

Minister for Finance Jack Chambers TD issued a press release on 1 January 2025 reminding taxpayers of several budgetary measures which took effect from that date. These changes relate to the income tax package, the rent tax credit, the benefit-in-kind exemption for installation of BEV (Battery Electric Vehicle) home chargers and the VRT rate change for commercial BEVs. More details of these changes are included in the Press Release.

Revenue has created a new Tax and Duty Manual regarding opinions provided by the High Wealth and Finance Services Division. A new procedure applies whereby all such applications must be submitted on a fully completed Form RTS 1A. The treatment for Financial Services branches remains the same as before. Further information is available in eBrief No.330/24.

Revenue has updated the Tax and Duty Manual regarding the general rule as to the deduction of expenses in employment. New guidance is provided on how to make a claim for employment expenses in respect of actual vouched expenses incurred wholly, exclusively and necessarily in the performance of the duties of employment that are outside the flat rate expense (FRE) allowance regime (paragraph 3). New detailed guidance is also provided on how to make a claim for a FRE allowance together with details of eight employment categories in which the FRE increased with effect from 1 January 2023 (paragraph 7). The manual has also been updated as follows: the circumstances where expenditure on a course is regarded as relevant to the business of an employer for the purpose of deciding whether the cost of such courses is regarded as a taxable benefit when paid for or reimbursed by an employer (paragraph 5), and the deductibility of typical expenses (paragraph 6).

Revenue has updated the Tax and Duty Manual which provides guidelines for VAT registration with information for VAT-registered applicants subsequently applying for postponed accounting via ROS. The Tax and Duty Manual which sets out the guidelines for registration for income tax, corporation tax, relevant contracts tax, employers’ PAYE and certain other tax heads has also been updated to reflect re-naming of the National Employer Helpline to the National Employer Helpdesk.