The Department of Finance published the Draft Budgetary Plan 2026 (DBP) last week which is required to be submitted to the European Commission and the Eurogroup by mid-October, in line with EU Regulation (EU) 473/2013 of the European Parliament and Council. The DBP is consistent with Budget 2026, which was presented on the 7 October 2025. The DBP notes that a general government surplus of 1.6 percent of GDP is expected for this year and a general government surplus of 0.8 percent of GDP is projected for next year. The debt-to-GDP ratio is forecast at 33.0 percent of GDP at the end of this year. The ratio is projected to fall to 32.4 percent of GDP next year, partly reflecting the impact of strong nominal GDP growth. The projections reflect the macroeconomic impact of policy measures introduced in Budget 2026, and the macroeconomic forecasts upon which the Budget is based have been endorsed by the Irish Fiscal Advisory Council.

Revenue has updated its guidance for Individuals described as ‘locums’ engaged in the fields of medicine, health care, pharmacy and ‘dental associates’ engaged in the field of dentistry providing additional information for dental associates. The guidance has been updated as follows: The title of the guidance now includes ‘dental associates’ engaged in the field of dentistry.  Section 1 has been updated to expand the purpose of the guidance to include Revenue's position regarding the employment status for taxation purposes of dental associates.  Section 3 has been amended to provide guidance on determination of employment status for taxation purposes of dental associates and dental hygienists.  Section 4 now contains information regarding incorporation of locum practices.  Section 5 has been updated to include reference to the publication of the revised joint Code of Practice on Determining Employment Status. In addition, section 5 has been amended to include the link to the VAT Treatment of Dental Services Manual. Section 6 has been updated and amended to include an additional question relating to tax treatment of payments made to dental associates. 

Revenue has issued a note, through the TALC Collections subcommittee, which provides additional information for the completion of the new panels on the Form CT1 in relation to section 299 leases. The note provides additional clarification on the disclosure requirements for leases agreed with corporate lessors and corporate lessees. The note also outlines additional relevant points regarding capital gains and group relief.  Revenue has confirmed that the content in the note will also be incorporated into the CT1 2025 Tax and Duty Manual when published as a reminder to filers.

The guidance on the LPT clearance procedures on the sale or transfer of residential properties has been updated by Revenue, to reflect new LPT clearance rules, effective from 17 March 2025. The following additional information has also been included in the guidance: Valuation date and duration of valuation. Sale of 'new and unused' properties. Sale of exempt properties.  Termination of deferral arrangements.  Properties sold by local authorities and approved housing bodies.  Penalties for non-compliance.  Sample of a Property History Summary (PHS).

Revenue has published updated guidance on the recoupment of overpayments of salary by an employer from an employee to include additional information and clarifications. Section 2 has been updated to include relevant content from three paragraphs previously referenced in other parts of the manual. A new example regarding 'Recoupment spanning a number of years’ has been included in section 3. Section 4 provides clarification on the procedure for an employee making a claim for a repayment of tax and USC and includes a new paragraph 4.3 regarding PRSI refunds. Section 5 has been updated regarding the recoupment of salary overpayment following the death of an employee. Periodic updates to dates and tax rates have been made throughout the manual.

Finance Bill 2025 was published last Thursday, containing the draft legislation to give effect to the various measures announced on Budget Day. The Institute will be engaging with Revenue and the Department of Finance and other stakeholders this week to discuss this year’s Bill through our participation in the Business Tax Stakeholder Forum and the Tax Administration Liaison Forum. We will be reporting back with a full analysis of Finance Bill 2025 in our Tax Newsletter next Tuesday 28 October. You can read  this year’s Finance Bill here and the accompanying explanatory memorandum here.  

Revenue has updated its dedicated agent and advisor e-linking webpage to provide enhanced guidance for taxpayers regarding the e-linking process for agent-link requests. A support video for myAccount users, along with an Agent e-linking FAQ document, are now available on the dedicated webpage.

Revenue has updated its guidance on payments arising on termination of an office or employment or removal from an office or employment to reflect the impact of unpaid leave on the calculation of the average taxable emoluments figure for the Standard Capital Superannuation Benefit (SCSB) exemption. The SCSB exemption is based on average salary for the last 36 months of employment and in some cases, an employee may have taken unpaid leave for a period during the 36-month period prior to employment termination. The guidance explains that salary details from beyond the last 36 months can be used in the SCSB calculation, to determine the average annual taxable emoluments, provided the person didn’t receive any other taxable pay during unpaid leave. If the individual continued to receive a contribution to a pension scheme and no other emoluments, that period is not treated as unpaid leave for the calculation. The guidance outlines that examples of periods of unpaid leave include unpaid maternity leave, unpaid paternity leave or unpaid parental leave.

Revenue has updated the Pensions Manual – Useful Contacts guidance to include contact details for the Department of Social Protection. It also clarifies that all queries regarding the operation and administration of the Automatic Enrolment Retirement Savings Scheme should be directed to that department.

The European Commission has published a report on the application of VAT rate derogations by Members States revealing an uneven distribution of derogations. The report highlights many disparities, including that Ireland is the only country to apply zero VAT rates to children’s clothing and maritime services.

The Council has adopted the European Commission’s proposal for a mandate to start negotiations with Norway to conclude an agreement on administrative cooperation in direct tax matters. It is intended to establish a cooperation framework between member states and Norway by extending certain provisions of the Directive on Administrative Cooperation. This should assist with cooperating on tax recovery and in the fight against tax fraud, evasion and avoidance.

The EU has amended automatic exchange of financial account information agreements with Andorra, Liechtenstein, Monaco and San Marino expanding the scope of reporting to include specific electronic money products and central bank digital currencies. The amendments are expected to come into force on 1 January 2026, thus strengthening the due diligence and reporting requirements which facilitates the use of information for tax administrations and limit burdens on financial institutions.