Our pre-Budget submission sets out why Ireland must rethink its tax strategy, without losing sight of its competitive edge. It recommends introducing tax measures to strengthen Ireland’s competitiveness, unlock domestic capital and build resilience in the economy in an increasingly challenging global tax and economic environment.
For more insights, read our Head of Tax, Orla Gavin’s commentary on the KPMG pre-Budget 2027 submission in The Irish Times.
Tax policy proposals for driving innovation, competitiveness and a greener future
Ireland is facing a period of considerable global uncertainty, driven by rising geopolitical tensions, slowing international growth and significant shifts in global tax and trade policy. In this environment, safeguarding Ireland’s competitiveness through a stable and predictable policy framework that supports investment, innovation and jobs is essential.
Ireland’s assumption of the EU Council Presidency on 1 July 2026 presents an opportunity for Ireland to advance the EU’s simplification agenda, which will enhance EU competitiveness and also benefit the domestic economy.
As geopolitical shocks reshape the global economy, how can we best secure our economic future? Our pre-Budget submission sets out why Ireland must rethink its tax strategy, without losing sight of its competitive edge.
Orla Gavin, Head of Tax at KPMG in Ireland, says: “Ireland faces a period of profound change in the global tax and economic landscape. Maintaining a clear, stable and competitive tax policy framework is essential to support investment, innovation, and employment.
In our pre-Budget 2027 submission, we highlight tax measures we believe will increase competitiveness for both FDI and domestic business."
“The multinational sector has been transformative for Ireland, and it will remain central,” says Orla Gavin, “But a resilient economy needs a broader base. Strengthening the domestic enterprise sector is critical, not just for growth, but for fiscal stability.
For example, high capital taxes are locking in capital, discouraging risk taking and restricting the recycling of funds into growing Irish businesses, therefore, we are calling on the Government to reduce CGT and CAT to 20%. This would incentivise investment and enable more timely and efficient intergenerational wealth transfers.
Our tax regime has also become overly complex, driven by layered domestic changes and international reforms, including the OECD’s Pillar Two rules. Corporation tax and VAT return should be streamlined, interest deductibility rules simplified, a single CGT pay‑and‑file date introduced, and measures introduced to reduce unnecessary compliance burdens for SMEs.
There is a clear opportunity for Ireland to position itself as a global hub for innovation, particularly in digital transformation and green technologies.
KPMG is therefore also urging the Government to strengthen the country’s innovation framework through targeted, future‑focused incentives.
Key proposals include a Digital Transformation Tax Incentive to accelerate adoption of advanced technologies among SMEs, a Green Transition Tax Credit and an increase in the R&D Tax Credit to 50% for green technologies.
The measures unveiled in the forthcoming Budget 2027 will have far-reaching implications for businesses across Ireland. If you have any inquiries, comments, or wish to explore further, we are here to assist.
Feel free to get in touch with Orla Gavin, our Head of Tax - we'd be delighted to hear from you.
