Written answers
Wednesday, 1 October 2025
Department of Finance
Tax Exemptions
Eoin Hayes (Dublin Bay South, Social Democrats)
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38. To ask the Minister for Finance if he will include an estimate of the value of tax foregone, as a result of the tax exemption awarded to religious organisation, in the Department of Finance Tax Expenditures Report, which estimates the cost to the Exchequer of various tax reliefs; if he will explore the use of alternative data sources, such as those held by the Charities Regulator, to develop an estimate of the tax expenditure associated with charitable exemptions; and if he will make a statement on the matter. [52284/25]
Paschal Donohoe (Dublin Central, Fine Gael)
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It is assumed that the Deputy is referring to the charitable tax exemption, which may apply to religious organisations.
The Deputy will be aware that my Department publish an annual report on tax expenditures. The most recent report, “Tax Expenditures in Ireland – 2025 Report”, was published in July and is available here: www.gov.ie/en/department-of-finance/publications/tax-expenditures-publications-and-guidelines/
Tax expenditures are defined in Irish legislation as a transfer of public resources that is achieved by—
- reducing tax obligations with respect to a benchmark tax rather than by direct expenditure, or
- provisions of tax legislation that reduce or postpone revenue for a comparatively narrow population of taxpayers relative to the tax base.
The charitable tax exemption is considered part of the benchmark tax system. Consequently, it does not appear on the master list of tax expenditures held by my Department and is not reported on in the annual report on tax expenditures.
Eoin Hayes (Dublin Bay South, Social Democrats)
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39. To ask the Minister for Finance if he will consider requiring organisations availing of charitable tax exemptions, especially those owned by the church with large assets, to file basic financial or tax-related information with Revenue to improve transparency and oversight; and if he will make a statement on the matter. [52285/25]
Paschal Donohoe (Dublin Central, Fine Gael)
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The Charities Regulator was established in 2014 and is Ireland’s national statutory regulator for charitable organisations.
All charities must submit an Annual Report to the Charities Regulator, detailing the activities and finances for the previous year. The report informs the public and donors of:
- what the charity has done over the previous 12 months to further its charitable purpose;
- who the charity has helped;
- how the charity raised and spent funds; and
- where the benefits of the charity’s work were felt.
I am advised that Revenue is solely responsible for granting charitable tax exemption to bodies which have been registered as a charity by the Charities Regulator. Revenue also administers the Charitable Donation Scheme, which allows tax relief for “qualifying donations” to certain “eligible charities” and other “approved bodies”.
I am also advised by Revenue that bodies who have a charitable tax exemption under section 207, 208 or 208A Taxes Consolidation Act 1997, are not required to file a tax return.
Charities, with the exception of schools with a Roll Number, must attach the following documentation when applying for the charitable tax exemption:
- a copy of their latest financial accounts or details of their financial plans;
- a statement of their activities and plans; and
- a copy of the charity's constitution which has been approved by the Charities Regulator.
The Charities Regulator provides templates of a Model Constitution for Unincorporated Entities and a Model Constitution for a Company Limited by Guarantee. The constitution must include Revenue’s standard clauses for Unincorporated Entities or Companies.
Schools with a Roll Number that are registered for tax who apply for the charitable tax exemption only need to provide: a Registered Charity Number issued by the Charities Regulator – and -details of all trustees.
I am further advised by Revenue that it carries out regular compliance interventions on charities and, as part of those interventions, financial records are checked.
Finally, and as the Deputy will appreciate, decisions regarding taxation measures are made in the context of the annual Budget and Finance Bill processes, at the appropriate time, and having regard to the sound management of the public finances. It is a longstanding practice of the Minister for Finance not to comment in advance of the Budget on any tax matters which might be the subject of Budget decisions. However, I have no plans, at present, to introduce requirements along the lines proposed by the Deputy.
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