{"id":461537,"date":"2026-05-22T09:51:12","date_gmt":"2026-05-22T09:51:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/461537\/"},"modified":"2026-05-22T09:51:12","modified_gmt":"2026-05-22T09:51:12","slug":"ireland-must-rethink-its-tax-strategy-in-this-years-budget-kpmg-says-the-irish-times","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/461537\/","title":{"rendered":"Ireland must rethink its tax strategy in this year\u2019s budget, KPMG says \u2013 The Irish Times"},"content":{"rendered":"

Ireland must \u201crethink\u201d its tax<\/a> strategy in this year\u2019s budget<\/a> and take \u201cdecisive action\u201d with measures to strengthen competitiveness, KPMG<\/a> has said.<\/p>\n

The professional services firm, in its pre-budget submission to T\u00e1naiste and Minister for Finance Simon Harris<\/a>, has urged the Government to increase the entry point to the marginal income tax rate, alongside a suite of other measures.<\/p>\n

Orla Gavin, head of tax at KPMG in Ireland, said the country faces a period of \u201cprofound change\u201d in the global tax and economic landscape.<\/p>\n

\u201cMaintaining a clear, stable and competitive tax policy framework is essential to support investment, innovation and employment,\u201d she said. <\/p>\n

\u201cIn our pre-Budget 2027 submission, we highlight tax measures we believe will increase competitiveness for both foreign direct investment and domestic business.<\/p>\n

\u201cThe multinational sector has been transformative for Ireland, and it will remain central. But a resilient economy needs a broader base. Strengthening the domestic enterprise sector is critical, not just for growth, but for fiscal stability.\u201d<\/p>\n

Among its key recommendations, KPMG called on Harris to reduce the capital gains tax and capital acquisitions tax rates to 20 per cent.<\/p>\n

Gavin said high capital taxes are \u201clocking in capital, discouraging risk taking, and restricting the recycling of funds into growing Irish businesses\u201d.<\/p>\n

\u201c[Reductions] would incentivise investment and enable more timely and efficient intergenerational wealth transfers,\u201d she said.<\/p>\n

KPMG, in what it called an \u201cincreasingly challenging global tax and economic environment\u201d, said Harris should increase the entry point to the marginal income tax rate to align with the average wage.<\/p>\n

It also called on the Minister to cap the amount of income subject to PRSI at \u20ac75,000 for employees and \u20ac100,000 for employers.<\/p>\n

Elsewhere, it said Harris should \u201csimplify\u201d Ireland\u2019s tax code and filing obligations, progress reform of the tax regime for interest, streamline corporation tax and VAT returns, and move towards a \u201cterritorial regime\u201d for branch profits.<\/p>\n

Gavin said Ireland\u2019s tax regime has become \u201coverly complex, driven by layered domestic changes and international reforms\u201d.<\/p>\n

\u201cCorporation tax and VAT return should be streamlined, interest deductibility rules simplified, a single capital gains tax pay-and-file date introduced, and measures introduced to reduce unnecessary compliance burdens for SMEs,\u201d she said.<\/p>\n

KPMG also called for the introduction of a \u201csimple, tax-efficient\u201d savings and investment account to help households achieve \u201cinflation-beating returns\u201d while channelling more domestic savings into \u201cproductive investment\u201d.<\/p>\n

Furthermore, the group called for the enhancement and simplification of the research and development tax credit, and reform of the knowledge development box to \u201cpreserve its effectiveness for in-scope groups\u201d.<\/p>\n

On the environment, it said the introduction of a \u201cgreen transition tax incentive\u201d and an increase in the research and development tax credit to 50 per cent for green technology development would be helpful.<\/p>\n

Gavin said there is a \u201cclear opportunity\u201d for Ireland to position itself as a \u201cglobal hub for innovation\u201d, particularly in digital transformation and green technologies.<\/p>\n

On housing, KPMG called for \u201ctargeted tax incentives\u201d to accelerate the conversion of obsolete buildings into \u201cmuch needed apartments and other residential accommodation\u201d.<\/p>\n","protected":false},"excerpt":{"rendered":"Ireland must \u201crethink\u201d its tax strategy in this year\u2019s budget and take \u201cdecisive action\u201d with measures to strengthen…\n","protected":false},"author":2,"featured_media":461538,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[5168,72,61,60,18040,70,5066],"class_list":["post-461537","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-budget","tag-business","tag-ie","tag-ireland","tag-kpmg","tag-simon-harris","tag-tax"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/461537","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=461537"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/461537\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/461538"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=461537"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=461537"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=461537"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}