Jennifer Whitmore (Wicklow, Social Democrats)
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51. To ask the Minister for Finance the position regarding the review of Ireland’s financial services tax regime, as encouraged by the Commission on Taxation and Welfare and plans to review the deemed disposal tax; and if he will make a statement on the matter. [39804/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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On the 22nd of October 2024, following Government approval, my predecessor published the ‘Funds Sector 2030: A Framework for Open, Resilient & Developing Markets’ a wide-ranging review of the funds and asset management sector. The Review fulfilled a recommendation of the Commission on Taxation and Welfare 2022 report mentioned by the Deputy, which called for an examination of the taxation regime for funds, life assurance policies and other related investment products, with the goal of simplification and harmonisation where possible.

The Report arising from the Funds Review sets out a series of recommendations to ensure that, in pursuit of continued growth in the funds and asset management sector, Ireland’s funds sector framework remains resilient, future-proofed, supportive of financial stability and a continued example of international best-practice.

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 taking into consideration the Funds Review recommendations to unlock retail investment and opportunities to grow this sector in Ireland. Recognising the complexities within the current regime for the average retail investor, my officials are reviewing options for measures that could be taken to assist with retail participation in capital markets.

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.