Ireland: Tax measures in 2025 budget
Further detailed measures are expected to be included in the Finance Bill.
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October 2, 2024
The Minister for Finance introduced the 2025 budget on October 1, 2024, which includes tax measures that would:
- Introduce a new participation exemption for foreign sourced dividends from EU/EEA and tax treaty jurisdictions effective January 1, 2025
- Increase the first-year payment threshold under the research and development (R&D) regime from €50,000 to €75,000
- Introduce a corporation tax deduction for listing expenses of up to €1 million relating to the first listing on an Irish/EEA stock exchange
- Extend the existing bank levy for an additional year
- Repeal the motor insurers insolvency compensation fund levy
- Enhance start-up relief for new small companies and relief for the audio-visual sector
- Reduce CO2 emission thresholds for capital allowances on business cars effective January 1, 2027
The budget also includes measures to support domestic entrepreneurship through improved reliefs for investments in SMEs and start-ups, and reforms to the taxation of foreign dividends and a review of the tax treatment of interest.
Further detailed measures are expected to be included in the Finance Bill scheduled to be published on October 10, 2024.
Read an October 2024 report prepared by the KPMG member firm in Ireland, which covers:
- Individual (personal) tax
- Employment tax
- Business tax
- Property and construction
- Indirect tax