Revenue has updated its  guidance to Charities and sports bodies on making an online application for a tax exemption. The guidance now reflects changes to the Charitable Donations Scheme whereby, with effect from 1 January 2025, the two-year waiting period for eligibility for the scheme no longer applies.  

The European Commission has launched a call for proposals for EU action grants in the field of taxation. The two grants involved aim to ensure the involvement of research institutions in the design and implementation of EU actions to fight the tax gap, in addition to contributing to the design of efficient tax systems.

Chapters 1, 24 and 31 of Revenue’s Pensions Manual have been updated to provide guidance on changes introduced in Finance Act 2024. The updated guidance now includes a reference to the new Automatic Enrolment Retirement Savings System. It also includes details of the new “employer limit” on employer contributions made on or after 1 January 2025 to an employee’s PRSA/PEPP, with some worked examples. Further information is available in eBrief No.106/25.

Revenue has updated the Pensions Manual - Chapter 07 which provides guidance on lump sum benefit and commutation. The updated manual aims to provide greater clarity and details of the relevant topics, including commutation factors and additional detail on maximum lump sums. The guidance also confirms that a deferred scheme member who suffers serious ill-health is subject to the deferred scheme rules as published in the Pension Manual Chapter 12.

Members of the European Parliament’s Tax Matters subcommittee will travel to Abu Dhabi and Dubai, from 26 to 28 May 2025, to discuss developments in the area of international taxation and the fight against tax avoidance and evasion. Discussions will focus on the implementation of the OECD/G20 international tax reform and the United Arab Emirates' efforts to combat tax evasion and avoidance and enhance transparency for taxation purposes.

Revenue has updated its Guidelines for Registration for IT, CT, RCT, PREM and Certain Other Taxheads to include details regarding the Central Register of Beneficial Ownership of Trusts  and a link to the Tax and Duty manual regarding the new e-linking process.

The Platform for Collaboration on Tax (PCT) has released the final version of the Tax Incentives Principles. These aspirational principles are intended to support governments in developing the rationale for tax incentives and in strengthening their design, implementation, and evaluation.

Revenue has updated the Agents Guide to the Collector General’s Division to include two new sections dealing with dividend withholding tax and value added tax. The updated guide also includes details of the pay and file extension date for 2025 and relevant contact details for stamp duty. Furthermore, the guide confirms that the High Wealth & Financial Services Division with Revenue now deals with queries from medical insurers relating to TRS for medical insurance.

Revenue issued a press release last week confirming that the filing deadline for the annual Residential Zoned Land Tax (RZLT) returns for 2025 has been extended to 30 May 2025.  The extension provides taxpayers with additional time to complete the filing process. Revenue noted positive levels of engagement from site owners to date, with liabilities of approximately €12 million having been paid. However, Revenue is aware that some site owners who have commenced the process to register for RZLT have not yet submitted a return. The press release provides information on registering for the RZLT and submitting a return, together with links to information resources on Revenue’s website. In Tax News last week, we provided details of RZLT online information sessions being run by Revenue. A previous news story in April covered  quick start guide to RZLT. Site owners are reminded that there is a 24-hour turnaround time between completing the RZLT registration and issuance of the site ID required to complete the RZLT return hence early engagement is encouraged. Taxpayers using an agent/advisor to assist them in filing their RZLT return should note that the agent/advisor must be linked to their Revenue record through the Agent Link Manager application process.

Last week, the Institute, under the auspices of the CCAB-I, responded to the public consultation on the Research and Development tax credit and on options to support innovation. In our response, we outlined the need to enhance the existing regime to ensure Ireland maintains its competitiveness in attracting new research and development (R&D) investment while also incentivising further activity by existing claimants. Our key recommendations focused on the removal of the existing restrictions on subcontracting R&D activities to third parties and the inclusion of qualifying indirect expenditure (such as rent) and costs relating to staff hired from agencies in the tax credit claim. We also made recommendations for an increase in rate and the acceleration of the repayment of excess tax credits.  In our response, we recommended an increase in the tax credit rate to 35 percent, with a special rate of 50 percent for green investment between 1 January 2026 and 31 December 2030. We also outlined the importance for smaller businesses of increasing the de minimis repayable credit from €75,000 to €200,000 and that the three-year period for larger repayments is reduced to no more than two years. In addition, we recommended the introduction of legislation providing that grants are taxable on a receipt’s basis to provide clarity on grant recognition in tax credit claims. We outlined that any policy on innovation must be designed to encourage investment in digitalisation, decarbonization and sustainability. To successfully achieve its objectives, especially in terms of digitalisation and the green transition, an innovation award system must have a broad scope with a lower technical qualification threshold.

Central priorities will be promoting range of pathways into the profession and realising the all-island economic opportunity  Pamela McCreedy has been elected President of Chartered Accountants Ireland, marking a pivotal moment for the Institute and the profession. Her appointment, confirmed at the 137th Annual General Meeting in Belfast, also makes her the first public sector professional in 17 years to take on the role, and the first since the Institute’s historic amalgamation with CPA Ireland. With almost 40,000 members and 6,600 students across Ireland and internationally, Chartered Accountants Ireland is now the largest professional body on the island. The AGM in Belfast was the first held since the successful amalgamation took effect on 1 September 2024, and Ms McCreedy’s presidency begins at a time of transformation both for the organisation and for the profession it represents. Currently serving as Chief Operating Officer of the Police Service of Northern Ireland (PSNI), Ms McCreedy brings extensive leadership experience across complex, public-facing organisations. She previously held senior roles in the Northern Ireland Audit Office, the Northern Health and Social Care Trust and KPMG.  Commenting, Pamela McCreedy said: “I am immensely proud that the Chain of Office is being handed over in Belfast. It’s a privilege to lead the Institute at such a transformative time when the pace of change in our profession is matched only by the scale of opportunity ahead. We must meet that change with integrity, insight, and purpose. I look forward to working with members across the island and abroad to strengthen our impact and build on our proud legacy.” She paid tribute to outgoing President Barry Doyle, commending his tireless efforts in leading the Institute through amalgamation, engaging with members, and abroad, and championing SMEs, emerging talent, and responsible innovation, including AI. A strategic year ahead A central priority for Ms McCreedy’s term is the implementation of Strategy27, the Institute’s three-year strategic framework designed to strengthen the profession’s resilience, relevance, and influence. The strategy is built around five key pillars: Attracting and educating the next generation Upholding trust in the profession Providing relevant and future-focused member support Being a strong and effective voice Helping members to navigate change. “Strategy27 is a bold and timely blueprint,” Ms McCreedy said. “In a complex world of rising costs, geopolitical pressures, and technological acceleration, the trusted role of the Chartered Accountant is more important than ever. Our members are not just finance professionals they are ethical leaders, critical thinkers, and stewards of long-term value.” The Institute will also unveil a refreshed brand identity next month as part of its first student recruitment campaign under the amalgamated structure aimed at showcasing the diverse and flexible pathways into the profession. Highlighting Northern Ireland’s Strategic Advantage Speaking in Belfast, Ms McCreedy highlighted the strategic importance of Northern Ireland’s dual market access: “Northern Ireland offers unrivalled access to both UK and EU markets, a position no other European region holds. Combined with our skilled workforce and pro-business environment, this is a compelling proposition for investment, and Chartered Accountants have a central role to play in realising that potential. She affirmed the Institute’s commitment to supporting members across all sectors, public, private, and practice, and to harnessing the influence of the all-island economy. A Moment of Transition and Tribute Ms McCreedy also acknowledged the upcoming departure of Chartered Accountants Ireland Chief Executive Barry Dempsey, who has led the Institute for the past eight years: “Barry has been a driving force in shaping a stronger, more visible, and more connected Institute. His leadership has left a lasting legacy and we thank him sincerely for his vision, commitment, and service to members and students.” At today’s AGM, Joan Curry, Finance Officer at the Department of Transport, Tourism and Sport, was elected Deputy President, and Niall Walsh, Partner at Deloitte Ireland, was elected Vice President.

Many Irish SMEs overlook transfer pricing but as Gavan Ryle explains, getting it right early is crucial for tax efficiency, compliance and successful global growth Transfer pricing is the process of setting prices for transactions between related parties, typically involving the exchange of goods, intangibles, services or finance between one group of companies and another. Many small- and medium-sized enterprises (SMEs) in Ireland may think that transfer pricing is only relevant to large multinationals, but this is not the case. Once Irish companies begin to trade in different jurisdictions, their transfer pricing policy will play a key role in determining the profits or losses recognised in each one. This presents an opportunity to optimise tax savings. It also carries risk, however, where transfer pricing audits handled incorrectly give rise to unnecessary costs. Relevance for Irish SMEs Transfer pricing is particularly relevant to Irish SMEs because so many begin exploring overseas opportunities at an early stage. Ireland is a relatively small market, so growth-oriented Irish companies often begin exporting or expanding overseas at a far earlier stage than their international counterparts. This very quickly gives them a taxable presence in foreign jurisdictions, which typically have corporate tax rates well in excess of 12.5 percent. These firms must plan for how they will be taxed in these locations and how to manage their overall effective tax rate. A scalable transfer pricing model can offer Irish SMEs expanding abroad a significant advantage from the outset.  First steps and planning ahead As with so much else in business, it is crucial to plan ahead—in this case, by putting a transfer pricing policy in place. The process of setting prices for related-party dealings cannot be handled arbitrarily, and must be implemented in the same way as if the parties involved were not related. The price charged between related parties—and the method of arriving at this price—should be very similar to that which would apply to an unrelated party. The emphasis should be on the functions performed, assets owned and risks borne by each affiliate in the business. It is important to look at the entire value chain, from research and development (R&D) through to production, distribution, sales and marketing and business support functions. The business will need to fully appreciate where executive decisions are made. A properly structured and fair transfer pricing policy is an investment in the longevity and success of your business. It can help to ensure that your pricing strategies are robust and adaptable, meeting your current needs while also preparing you for future challenges and opportunities. Whether you are navigating complex deal room negotiations, undergoing a tax audit, or planning to expand your business model into new territories, a well-crafted transfer pricing policy will help. As your business continues to grow While it is crucial to take a long-term view when setting your transfer pricing policy, it is equally important to get it right at the outset, notwithstanding the cost involved. It may also be necessary to revisit your policy as your business scales, ensuring it remains fit for purpose. Consider the impact of events such as acquisitions, expansion into new territories, or the appointment or relocation of key senior leadership roles. Remember, formal Irish transfer pricing compliance rules will take effect once the consolidated group turnover exceeds €50 million. Risks and opportunities Tax authorities at home and abroad have increased their efforts to ensure companies comply with transfer pricing rules. An incorrect or poorly designed transfer pricing policy may lead to lengthy and costly tax audits with potential penalties, depending on the facts and circumstances. Increasingly, SMEs are seeking external funding to implement business strategies. Having a robust and effective transfer pricing model in place as you navigate funding rounds can be highly advantageous in conveying the value of your enterprise. Gavan Ryle is a Partner at PwC Ireland