Seán Fleming (Laois, Fianna Fail)
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142. To ask the Minister for Finance for an update on tax measures to incentivise retail investing in Ireland, particularly in relation to exchange-traded funds; and if he will make a statement on the matter. [39116/25]

Michael Cahill (Kerry, Fianna Fail)
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157. To ask the Minister for Finance if he will outline any plans under consideration to reform the taxation treatment of exchange traded funds for retail investors, particularly regarding the 41% exit tax rate and the deemed disposal rule after eight years, which many argue penalises long-term investment and wealth preservation for workers. [39408/25]

Shane Moynihan (Dublin Mid West, Fianna Fail)
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158. To ask the Minister for Finance if he will outline the investment fund reforms being considered in advance of Budget 2026, including fund-tax change; and if he will make a statement on the matter. [39239/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 142, 157 and 158 together.

As you are aware, in October 2024, Minister Chambers published the ‘Funds Sector 2030: A Framework for Open, Resilient & Developing Markets’. This was an important and wide-ranging review of the funds and asset management sector in Ireland. The Report sets out 42 recommendations (some related to taxation) across a wide range of areas to support growth in the funds and asset management sector.

The Funds Review Report included eight recommendations to promote increased retail participation in capital markets. Recommendations 22 and 23, which concern taxation, include consideration of the removal of the eight-year deemed disposal requirement for Irish domiciled funds and life products and alignment of tax rates across different investment choices.

The 2025 Programme for Government has committed to progress and publish an implementation plan for the Funds Review for consideration in Budget 2026, taking into consideration the recommendations to unlock retail investment and opportunities to grow this sector in Ireland.

I have heard the feedback about the need to modernise the existing taxation regime as it applies to retail investment, including for Exchange Traded Funds (ETFs), and I acknowledge the complexities in the current regime for an average investor. I recognise the growing importance of the funds sector as an employer within our economy and I recognise that the products the sector makes available are being considered by more and more citizens. I believe, therefore, that we should look at how we can support that.

This is a complex area of taxation that encompasses a wide breadth of tax legislation on domestic funds, life assurance products and offshore funds. Detailed consideration is therefore being given to the best way to bring about the necessary reforms and to support a greater level of retail investment in capital markets. It is likely, given the breadth of the Funds Sector 2030 Report, and the work involved, that where appropriate tax measures are identified, the delivery of those measures may take place over multiple Finance Bill cycles. This work will also take account of developments at an EU level in respect of the Savings Investment Union.