Cathal Crowe (Clare, Fianna Fail)
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127. To ask the Minister for Finance his plans to review and simplify the current business and enterprise tax system to promote innovation and economic growth; and if he will make a statement on the matter. [39357/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Programme for Government sets out a range of commitments to pro-enterprise tax policies, with a view to supporting long term investment and the creation of high-quality jobs in the Irish economy. These include the promotion of innovation, economic growth and entrepreneurship, and maintaining competitiveness by way of simplification of the tax system.

All taxes, including business taxes, are periodically reviewed as part of the annual Budget process. This work is carried out to ensure accountability, to evaluate measures aimed to address market failures, and to maintain a competitive trading environment for businesses operating in Ireland.

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 for Irish parent companies. Work is also ongoing to review Ireland’s taxation regime for interest. The overarching aim of the review is to achieve a simplified and resilient tax regime for interest which supports competitiveness and protects the tax base. A review of the R&D tax credit is also under way this year, and officials in my department have recently concluded a public consultation on the R&D tax credit, and on options to support innovation. Responses to this consultation will inform my policy deliberations in advance of Budget 2026.

The Deputy may also be aware that a special Tax Administration Liaison Committee (TALC) was established by Revenue in early 2024 with the aim to examine potential opportunities to modernise and simplify access to business reliefs, in particular for SMEs. The sub-committee presented its report in June 2024 and work is ongoing to implement its recommendations.

My officials are also engaging with reviews being carried out at a European level with a view to simplification of EU rules across all policy areas, including direct taxation, to enhance EU competitiveness. While the 2025 Work Programme does not outline any new specific corporate tax policy or legislative initiatives, the European Commission is expected to propose two tax simplification packages in early 2026.