In November, the Department of Finance launched a public consultation on the strawman proposal for the reform of the taxation regime for interest in Ireland. The public consultation forms part of what is expected to be a multi-phase project to reform the taxation regime for interest with the aim of ensuring our tax system is resilient, supports competitiveness, protects the tax base and aligns with our commitments to our international trading partners. Last week, the Institute submitted our response to this initial phase of this wide-ranging and ambitious project. We have provided a detailed response to the strawman proposal where we set out, among other things, the need for careful consideration of any changes to how interest is currently taxed, both in the hands of those receiving interest income and those incurring interest expenses. The strawman proposal includes a recommendation to move to an accruals basis for interest arising under Case III/IV activities as well as a move to a new test for determining deductibility in the form of a ‘profit motive’ test. Broadly, our comments urge the Department to reconsider the trajectory of the project and to consider whether such changes simply alter existing rules without any clear benefit to taxpayers rather than actually progressing the tax system towards once which is fully adapted to international best practices. Presently, our system has layered complex anti-avoidance driven by the EU Anti-Tax Avoidance Directive on top of an existing system of anti-avoidance that is already complex. The proposals also include a recommendation to activate transfer pricing rules for SMEs. In our response, we have in fact recommended for the repeal of these rules. In our view, these rules are not required for such entities. The benefit, if any, to the integrity of the tax base is totally outweighed by the added cost and complexity in the administration for SMEs.

Fiji has become the latest country to sign the Multilateral Convention on Mutual Administrative Assistance in Tax Matters. This paves the way for Fiji to engage in the exchange of information with 151 other jurisdictions, including all major financial centres.

Guatemala has joined the OECD/G20 Inclusive Framework on BEPS, becoming the 148th member, as the Inclusive Framework continues to evolve in response to emerging tax policy challenges. Guatemala’s participation in BEPS signals the country's commitment to promoting a modern, transparent, and competitive tax system that can protect tax bases.

The latest UK tax tidbits features guidance across a wide range of areas. Apply to register a pension scheme, Inheritance Tax account (IHT400), Completing your Company Tax Return, Multinational Top-up Tax and Domestic Top-up Tax, Make a qualifying asset holding company notification to HMRC, Check if a business holds Authorised Economic Operator status, Request transfer of a VAT registration number, HMRC videos and webinars for Making Tax Digital for Income Tax, Software developers providing entry summary declaration support, Check the list of businesses and sites registered for Aggregates LevyTop of Form, Employee circumstances that affect payment of Statutory Neonatal Care Pay, Tell an employee that they're not eligible for Statutory Neonatal Care Pay (NEO1),Elect a qualifying company for tax exemption on UK capital gains, Tell HMRC about who is dealing with the estate when someone dies, When National Insurance and PAYE is due on tips, gratuities and service charges (E24), Find payroll software that is recognised by HMRC, Double Taxation Treaty Passport Scheme register, Check genuine HMRC contact that uses more than one communication method, How to complete an Other Interest return, Other Interest returns,  

Last week, the Institute hosted members from across industry and practice to discuss our campaign to activate the powers for the Northern Ireland Executive to set the rate of corporation tax for Northern Ireland. In June, we launched a refreshed campaign highlighting why a corporation tax rate of 12.5 percent would be a key move in supporting the economic advancement of the region. You can our full reasoning in our seminal position paper – ‘Enhancing Our Competitiveness’: The case for a reduced rate of corporation tax in Northern Ireland. The Institute maintains that a robust industrial policy for Northern Ireland must address the divergence in corporation tax rates between Northern Ireland and the rest of the island. A reduced rate of corporation tax that is at parity with the rate across the rest of Ireland would attract investment, encourage entrepreneurship and secure the future of the region. Northern Ireland stands to benefit greatly if it can realise the full potential of its dual market access to both the EU and the UK. As recently as November, the Institute wrote specifically to the Exchequer Secretary to the Treasury on this issue highlighting that the ultimate aim of a lower rate is that it would become self-funding in the longer term but that it would necessitate a replacement loan at a low interest rate from HM Treasury to fund the necessary block grant reduction. We will continue our campaign throughout 2026. If you work in a local business and would like to participate in the Institute’s campaign by being a voice of support for a lower rate, contact us by email.

The guidance on the income tax treatment of married persons and civil partners and the tax treatment of former cohabitants have been updated to include information relating to the return of PRSI contributions in respect of maintenance arrangement payments by married persons and civil partners and former qualified cohabitants respectively. The relevant information had previously been included in the manual on PRSI - maintenance cases.

Revenue has published two new VAT guidance documents providing information on the application of the second reduced VAT rate to the supply and construction of qualifying apartments and apartment blocks. One document covers the period from 8 October 2025 to 25 November 2025 and the second covers the period from 26 November 2025 to 31 December 2030.  New guidance on the VAT treatment of the hire of a room has also been published. In addition, the following existing guidance has been updated to incorporate Finance Act 2025 provisions: Removal of Waiver of Exemption has been updated following the cancellation of all waivers of exemption. VAT treatment of management of special investment funds has been updated to include the automatic enrolment retirement savings system. VAT treatment of construction services has been updated to include an amendment arising from the application of second reduced rate to services relating to the construction, until completed, of qualifying apartments and qualifying apartment blocks. VAT treatment of the special flat-rate scheme for farmers has been updated to reflect the reduction of the flat rate addition and to include information relevant to broiler chicken services. VAT treatment of broiler chicken services has been updated to reflect the VAT registration requirements for broiler chicken services. VAT deductibility for qualifying conference accommodation has been updated to reference the new guidance on the hire of a room. Further details of the relevant changes are included in the Institute’s Finance Bill at a glance.

Revenue has updated the guidance on the confidentiality of taxpayer information to reflect changes introduced by Finance Bill 2025 and to update legislative references throughout. The main changes to the guidance include the following:   in paragraph 3, the word “penalty” is replaced with “fine”, in paragraph 4.10 to reflect the new subsection (8)(oa) to section 851A TCA 1997 which ensures that Ireland can comply with its obligations under the EU De Minimis Regulation and the EU Agricultural De Minimis Regulation, in paragraph 4.12 on the disclosure of taxpayer information to the Charities Regulatory Authority, and in paragraph 4.13 to clarify guidance in relation to joint audits conducted by Revenue and the competent authority of another Member State.

Revenue has updated numerous income tax guidance documents to reflect changes introduced by Finance Bill 2025 which we have outlined as follows. In some cases, the examples in the guidance have also been updated to reflect the changes. High-Income Individuals’ Restriction Tax Year 2010 onwards to include the Living City Initiative, High Income Individuals’ Restriction to reflect rate bands, Rent tax credit to reflect the extension of the credit, and Mortgage interest tax credit to reflect the extension of this credit. Full details of the relevant changes are included in the Institute’s Finance Bill at a glance document.

Revenue has published updated guidance on domestic employers and the taxation of domestic employees removing references to pre 2019 requirements and excluding information in the  appendices which is now available from the Department of Social Protection. The contact details for the special collection section of the Department of Social Protection have also been included.

Revenue has updated several stamp duty guidance documents to reflect changes introduced by Finance Bill 2025. We have listed below the documents which have been updated, and details of the relevant changes are included in the Institute’s Finance Bill at a glance document. Provisions applicable to particular instruments, Stamp Duty on certain acquisitions of residential property, Exemptions and Reliefs from Stamp Duty, Levies, Levy on authorised insurers, and Further levy on certain financial institutions.

The Tánaiste and Minister for Finance, Simon Harris and the Minister for Culture, Communications and Sport, Patrick O’Donovan jointly launched the new tax relief for the unscripted production sector. The relief will operate by means of a corporation tax credit for costs incurred in developing unscripted programmes and is available at a rate of 20 percent of eligible production expenditure, up to a maximum of €15 million per project. As the relief is cultural in nature, a cultural test will apply. To claim the credit, a company must first obtain interim cultural certification from the Minister for Culture, Communications and Sport before commencing production on a qualifying unscripted programme. Relief is available under section 487A TCA 1997 and is available to a qualifying producer in respect of certain costs associated with eligible unscripted productions. To qualify, the total production cost must be at least €250,000, and eligible expenditure must amount to at least €125,000. The credit is calculated at 20 percent of the lower of: eligible expenditure, 80% of the total production cost, or €15 million. Commenting on the announcement of the tax credit, the Tánaiste said: “Ireland has a brilliant reputation internationally as being a centre of excellence for film television and audio production. The introduction of this measure represents a further strengthening of Ireland’s tax incentives for the audiovisual sector, reinforcing the Government’s long-standing commitment to supporting screen production and Irish creative industries”