Ireland: Direct and indirect tax measures in Finance Bill 2025

Includes many of the 2025 budget measures announced in October 2024

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october 17, 2025

The Minister for Finance on October 16, 2025, published the Finance Act 2025, which includes many of the 2025 budget measures announced on October 1, 2024 (read TaxNewsFlash), including:

  • Expansion of scope of participation exemption for certain foreign dividends made on or after January 1, 2026
  • Enhancements to research and development (R&D) tax credit, including for accounting periods ending on or after December 31, 2026:
    • Increase in standard credit rate to 35% (from 30%)
    • Increase in first-year minimum installment threshold for the relief to €87,500 (from €75,000)
  • Enhanced corporation tax deduction of 125% of eligible expenditures on qualifying apartment blocks (up to a maximum €50,000 per apartment unit) through December 31, 2030
  • Extension of availability of special assignee relief program until December 31, 2030

Read an October 2025 report prepared by the KPMG member firm in Ireland, which covers:

  • Employment tax
  • Domestic business tax
  • Value added tax (VAT) and indirect tax
  • International business tax
  • Green transition
  • R&D and other incentives
  • Individual (personal) tax
  • Financial services
  • Property and construction

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