Shay Brennan (Dublin Rathdown, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

17. To ask the Minister for Finance his plans to review business taxes; and if he will make a statement on the matter. [15984/25]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I remain fully committed to maintaining a competitive business environment which continues to deliver economic growth and prosperity.

The Programme for Government sets out a number of commitments including to the maintenance of a broad tax base while implementing progressive changes in taxation as the economy allows, supporting innovation and entrepreneurship and maintaining competitiveness.

All taxes, including business taxes, are reviewed annually as part of the Budget process. In the area of corporation tax, this year has seen the introduction of a participation exemption for foreign dividends, a measure that will greatly simplify cross-border double tax relief, and work will take place this year to consider expanding the geographic scope of the rules.

A review of the tax treatment of interest in Ireland is underway – a public consultation held to gather valuable stakeholder input has recently concluded and responses are being considered to allow me to update and enhance the existing rules.

The R&D Tax Credit is also being reviewed to ensure that it remains an important part of our competitive offering. I anticipate that there will be a consultation process in the coming weeks and I encourage all interested parties to engage and ensure that their perspectives are understood as these policies are developed.

Tax expenditure reviews ahead of sunset clauses are also taking place in respect of the Digital Games Tax Credit and the Accelerated Capital Allowance schemes for energy-efficient equipment and gas/hydrogen vehicles, and engagement is ongoing with relevant stakeholders.

Policy proposals are also considered by the Tax Strategy Group which is chaired by the Department of Finance, with membership comprising senior officials and political advisers from a number of civil service Departments and offices. Papers on various options for tax policy changes, including a specific business tax paper are prepared annually by Department of Finance officials and published on the Department's website.

An annual review of tax expenditures also takes place, and is published, to ensure that tax expenditures represent value for money to the taxpayer, continue to address market failures, and provide for a competitive trading environmental for business operating in Ireland.

This illustrates some of the ongoing developments in relation to business taxes.