-CGT reduction a step in the right direction
-Changes to ERR will reduce burden on businesses
-Necessary and welcome changes to personal taxes
Tuesday October 6, 2026. The Irish Tax Institute has welcomed a number of the measures announced in Budget 2027.
The Institute, which is the leading educational and representative body for Ireland’s Chartered Tax Advisers (CTA), said important progress had been made in Budget 2027, including:
- a 2% reduction in the Capital Gains Tax (CGT) rate
- changes to the Enhanced Reporting Requirements (ERR)
- personal taxation measures including the increase in the point at which people pay the higher 40% rate of income tax to €46,500 and the increase in the personal, employee and earned income tax credits by €125
- amendments to Preliminary Corporation Tax rules
- enhancements to the Research and Development (R&D) Tax Credit
The Institute also welcomed the announcement of details in relation to the new Savings and Investment Account which it believes will create a more balanced and dynamic investment landscape, benefiting both households and the wider economy.
Commenting, Institute President Brian Brennan said,
“The 2% reduction in the CGT rate is a welcome development and certainly a step in the right direction. The Irish Tax Institute has consistently called for the rate, which heretofore has been among the highest in Europe, to be reduced to 25% to support innovation, enhance productivity and attract investment, and we will continue to do so.
“The changes announced with respect to the ERR are very welcome and will undoubtedly go some way to reducing the administrative burden on businesses. At every opportunity the Institute has highlighted the onerous nature of real-time reporting, in particular on small businesses, and we are delighted that the Tánaiste and his Department have listened to our recommendations.
“The increase to the point at which people pay the higher 40% rate of income tax to €46,500 and the increase in the personal, employee and earned income tax credits by €125 are absolutely welcome. We do believe and have long argued that tax credits and bands should be automatically adjusted annually to ensure that taxpayers are not subjected to increased tax because of rising inflation. This position, which would maintain the real value of a taxpayer's earnings when the cost of living rises, is something we will continue to advocate for.
“The need for amendments to Preliminary Corporation Tax rules is something which the Institute highlighted in our Pre-Finance Bill submission in April and again as recently as September. In our correspondence we made recommendations which we believe are necessary to reduce uncertainty and ease the administrative burden for companies. We are delighted to hear in today’s Budget that amendments are forthcoming and will continue to liaise with the Department of Finance on those amendments. Likewise, we will also participate in the consultation announced today by the Tánaiste in relation to the reform of Professional Services Withholding Tax which the Institute has already provided feedback on.
“We very much look forward to seeing further detail on the enhancements which have been announced in relation to the R&D Tax Credit. It is a cornerstone to Ireland’s Foreign Direct Investment (FDI) offering and must constantly evolve to keep pace with competitors in this post Pillar Two world. We have been encouraged by the publication of the R&D Tax Credit and Innovation Compass earlier this year and the establishment of an R&D Subgroup of the Business Taxes Stakeholder Forum, on which the Institute has actively participated. We believe work must continue at pace in developing an innovation incentive and hope to see this provided for in future budgets,” he concluded.
