Revenue has updated its guidance on emergency accommodation and ancillary services to reflect the change introduced by Finance Act 2025 resulting in the automatic cancellation of all VAT waivers of exemption with effect from 23 December 2025.

In its recently published ‘Beyond the Budget Series', the Irish Fiscal Advisory Council (IFAC) has highlighted concerns that Ireland’s corporation tax receipts have become more concentrated with the top ten highest paying corporate group accounting for almost 60 percent of total corporation tax receipt in 2024. Of this cohort, the top three corporate groups accounted for 46 percent of all corporation tax revenues in 2024. In addition, data shows that since 2022, the corporation tax paid by two of the biggest payers, both in the tech sector, has increased substantially resulting in greater concentration and greater uncertainty. As corporation tax revenues become more concentrated, they also become more volatile. IFAC warns this means Ireland’s tax base is increasingly exposed to the performance of a small number of firms and the decisions they make. The relevant group structures are highly sensitive to global developments and further shifts in US tax, trade, or industrial policy could significantly influence their location decisions. As a result, future receipts are more uncertain and could end up significantly above or below current levels. However, IFAC notes that the 15 percent minimum effective tax rate for large multinationals will boost corporation tax revenues from 2026 with a previous analysis suggesting the measure could raise a further €5 billion in receipts.

Last week the Institute wrote to Minister John O’Dowd and Dr. Caoimhe Archibald in Northern Ireland to highlight three key issues which arise for employers and employees dealing with cross-border and remote working issues on the island of Ireland. The letters follow on from similar letters sent last month to Ministers Simon Harris and Peter Burke in the Irish Government. All four letters set out how these issues are affecting employees and employers navigating the rules on cross-border and remote/hybrid working and how these are negatively impacting the all-island labour market and ultimately the economy on each part of the island. The ongoing work of the Institute’s Joint Working-Sub Group on Cross-Border and Remote/Hybrid working is highlighted in the letters. This work is continuing in 2026. Each letter highlights how embracing a more integrated approach to cross border working would offer the opportunity to drive growth, build a more stable future for the entire island, and improve outcomes for communities and citizens in both jurisdictions. Although there are numerous areas to address within the context of a conjoined economic approach, the all-island labour market and the trend of remote/hybrid working models could play a central role in driving productivity, mobility, and growth. Currently there are significant tax policy/administration and associated barriers which are preventing the market from realising its full potential. The three key issues identified by the Working Sub-Group since it was established in September 2024 are: The added administrative responsibilities for both employers and employees when a frontier worker works from home a few days a week. Each letter sets out a high-level summary of the administrative impacts in its appendices. In particular, these highlight how hybrid working requires dual payroll to be operated by the employer in accordance with the individual tax rules in each jurisdiction, The disparity in treatment of pension contributions and retirement income. For instance, employee pension contributions paid in one jurisdiction often qualify for tax relief in that jurisdiction but do not attract relief in the country of residence meaning employees in the same organisation are treated differently simply because of their country of residence, and The need for education, training and better guidance from government bodies and tax authorities on the implications and complexities which arise from these working arrangements.

Last week the Department of Finance published the first volume of its 2026 Economic Insight series, examining key trends shaping the Irish labour market. The publication notes that Ireland’s labour market is particularly exposed to AI, with evidence suggesting that AI may already be influencing employment patters in Ireland. The report finds that while AI has the potential to significantly disrupt Ireland’s labour market over the coming years, the sectors in which AI is likely to have the greatest impact are also becoming increasingly clear. This information should assist with policy decisions to support workers in these sectors to up-skill and re-skill where necessary and support smooth labour market transitions. The publication also examines a broad assessment of current labour market conditions following an exceptionally strong post-pandemic expansion and explores recent employment trends in health, education and public administration sectors. Commenting on the release, Tánaiste and Minister for Finance, Simon Harris TD, said: “Our labour market has shown remarkable resilience in recent years, with employment at record levels and unemployment remaining low by historical standards. At the same time, we know that we are now entering a period of profound technological change. AI presents significant opportunities to enhance productivity and strengthen our competitiveness, but we must also ensure that workers and firms are equipped to adapt. That means investing in skills, supporting life-long learning, and continuing to roll out enterprise supports that help firms adopt and deploy new technologies.”  

The Pillar Two registration deadline for in-scope entities with a fiscal year ending on or before 31 December 2024 has been extended to Saturday, 28 February 2026. Further details are available in our earlier tax newsletter item.

Revenue has issued an eBrief announcing Wednesday 18 November 2026 as the ROS 2025 return extended filing and payment date for certain self-assessment taxpayers. The extension applies to taxpayers who file their 2025 Form 11 return and fully meet their payment obligations through ROS. The payment obligations relate to the balance of income tax due for 2025 and the preliminary tax payment due for 2026. Beneficiaries in receipt of gifts and inheritances with a valuation date in the year ended 31 August 2026 who file a capital acquisitions tax return and make the appropriate payment through ROS can also avail of the extended deadline date. Taxpayers are required to both file and pay through ROS to qualify for the extension. Revenue confirmed in the eBrief that extension will not apply if only one action is completed through ROS. In these cases, the filing and tax payment due date will then be no later than 31 October 2026.

The EU has published an updated list of ten non-cooperative tax jurisdictions. The Council has removed three countries, Fiji, Samoa and Trinidad and Tobago from the list and it has also added two new jurisdictions, Viet Nam and Turks and Caicos Islands.

The Research and Development (R&D) tax credit is one the most successful tax-based incentives in modern times with almost all 38 members of the Organisation for Economic Cooperation and Development (OECD) having some form of tax-based incentive for companies that engage in R&D. Indeed, in a recent review of the R&D tax credit published by the Department of Finance, it was reported that Ireland’s R&D tax credit ranks amongst the most attractive across OECD countries. Last week, the Department of Finance published its ‘Research and Development Tax Credit and Innovation Compass’ (“the R&D Compass”). This fulfils a commitment made both to stakeholders who contributed to last year’s public consultation (which the Institute responded to here), as well as to the wider electorate in the Government’s ‘Action Plan on Competitiveness and Productivity’. The R&D Compass identifies four broad directions for future policy work: Qualifying Expenditure, Capital Expenditure, Administration and Simplification, and Supports for Innovation. These four broad areas have been used to identify nine specific measures which will be examined under the R&D Compass. These include a holistic review and examination of the sub-contracting provisions, determining whether there is merit to including additional categories of qualifying activities, examining options to accelerate the payment of the R&D tax credit, and a review of the Knowledge Development Box (KDB). It is clear that the R&D tax credit will remain a cornerstone of our tax code for some time to come, and the R&D Compass will provide a foundation for the next phase of development and review of the R&D tax credit in Ireland. The relief is integral to Ireland’s overall economic model, not least of all in incentivising the R&D activities of the key multinational enterprises that operate from Ireland. However, we consistently receive feedback and indeed provide feedback that the administrative burden for smaller enterprises needs to be examined as a matter of priority. The data consistently shows that while small and medium enterprises (SMEs) account for the vast majority of claims in terms of number (typically between 85 to 90 percent of total claims), they account for about a quarter of the overall cost to the Exchequer annually. While this aligns with corporation tax data on the nature of receipts generally, it does beg the question on what could be done to further incentivise SMEs to engage in higher-value R&D. The R&D Compass does include commentary in this regard, including encouraging public-private collaborations and enhancing the opportunity to engage sub-contractors. It is worth commenting on the possibility of a relief that will reward innovation. This acknowledges that some innovative activities, while central to our economy, do not resolve uncertainty in the manner required for the purposes of the R&D tax credit. Therefore, an innovation-based relief would enable the Oireachtas to target specific areas where innovation should be supported but where there is no scientific uncertainty to be resolved. It is therefore likely that an innovation-based relief will be broad-based in terms of qualifying activities but narrow-based in terms of the specific sector or industry targeted. A clear focus of any such relief should be toward decarbonisation and green objectives or the digital transformation. When publishing the R&D Compass, the Tánaiste and Minister for Finance, Simon Harris noted that the “Compass identifies areas that will be reviewed further over the term of this Government, with the specific direction of travel in each of those areas to be determined as relevant analysis is completed”. As such, time will tell what will be first on its list of priorities, and what can be achieved with enough ambition and courage to support R&D activities on the island and as always Chartered Accountants Ireland will be engaging with Government each step of the way.

Last week Chartered Accountants Ireland represented members at the Department of Enterprise, Tourism and Employment’s Cost of Business Advisory Forum. The most recent session focused on the cost of regulation, reporting and compliance. In our submission ahead of that meeting, we continued to voice our concerns with the real-time reporting requirement for information reportable under the Enhancement Reporting Requirements (ERR). We continue to raise the point that the information required relates to expenses and benefits which are non-taxable and therefore, should not form part of payroll data. Instead, employers should be able to provide periodic information returns to Revenue in line with practices that had been established prior to the implementation of ERR. We maintain that there has never been an adequate analysis on the benefits to government in receiving this information in real time versus the compliance burden placed on businesses. A simple, periodic deadline for returning in-scope information would be sufficient in our view and in the experience of our members.

The European Commission has launched a Call for Evidence for an impact assessment on the Omnibus on taxation. The initiative aims to simplify the EU’s direct taxation framework to support competitiveness in the internal market, while reducing reporting and compliance burdens and improving the application of tax rules and procedures. The deadline for responding to the Call for Evidence is Monday 16 March 2026.

The OECD has published its Amount B Pricing Frequently Asked Questions (FAQs). These FAQs have been developed in response to technical questions raised by stakeholders and aim to ensure a consistent application of the Amount B simplified and streamlined approach.

It has been a busy week of commentary on savings and investments. An Tánaiste and Minister for Finance, Simon Harris, spoke about how he wants to help people get the most out of their money. On a Leaders interview with RTÉ, he outlined that he will bring a strategy to government setting out its plan for a Savings and Investment Scheme to bring Ireland in line with many of our European colleagues.   He outlined that he plans to: Make saving and investing more rewarding and accessible for ordinary families, not just the wealthy. Bring Ireland closer in line with European peers who have structures that help people make their money work harder and better for them. Reduce barriers like outdated rules that currently act as a drag on long-term personal investment.  The Tánaiste also commented outside the meeting of Finance Ministers in Brussels that “There is a €170 billion on deposit today, we need to make that money work – not just for our country, not just for the economy, but for our SMEs…I’m thinking of the next generation of people in Ireland and how this could help with their own personal economic resilience…At the moment they are locked out of any meaningful participation in the investment scenario in Ireland.”  Last week we updated you on our advocacy in this area and we wrote to Minister Harris, with recommendations to implement changes to Ireland’s savings and investments ecosystem including: Abolish the deemed disposal rule Reduce the tax rate on investment funds  Introduce loss relief on disposals of units in a fund at a loss Introduce a Savings and Investment Account  Prioritise financial literacy   In our letter, we outlined that increasing retail investment is not only beneficial to households and workers but also to the wider economy.  Whether it is improving the funding environment for growing innovative companies or increasing investment opportunities in infrastructure, the possibilities are considerable if Ireland gets this right.    On Budget day, it was announced that a road map would be published in the first quarter of 2026 outlining how the government plans to implement the recommendations in the Funds 2030 report. We will hopefully see the details of the Minister’s plans for savings and investments outlined in the roadmap and for it to be published in the coming weeks. We look forward to engaging with Government in this area – whether via a forum or consultation process. We will represent members views and keep members updated in this area of important work.