Ireland Tax Changes — Live Tracker

What changed

Finance Act 2024 raised the R&D tax credit from 30% to 35% of qualifying R&D expenditure, with the first-year payment threshold (the amount payable in the first instalment) increased from €50,000 to €75,000. The credit is refundable in cash over three years where the company has insufficient corporation tax to absorb it.

Who it affects

• Companies undertaking qualifying R&D activities in Ireland
• Tech, biotech, software and engineering companies
• Loss-making startups (can still claim the refundable credit)

What to do

Review R&D activities for the current accounting period. Document the science and technology advance being sought. Submit the claim within 12 months of the accounting period end.

What changed

Ireland introduced a participation exemption from Corporation Tax on foreign dividends from EU/EEA and tax-treaty country subsidiaries (5% minimum shareholding, 12-month minimum holding). Replaces the previous tax-and-credit system for most groups.

Who it affects

• Irish holding companies with foreign subsidiaries
• International groups with Irish parent
• Companies with EU/EEA or treaty-country investments

What to do

Review group structure to confirm holdings meet the 5% / 12-month tests. Elect into the exemption on the corporation tax return.

What changed

Ireland transposed the EU Pillar Two Directive: in-scope multinational groups (consolidated revenue €750m+) must pay a top-up tax if their effective rate in any jurisdiction falls below 15%. Domestic top-up tax applies first.

Who it affects

• Multinational groups with €750m+ consolidated revenue
• Irish subsidiaries of large global groups
• Not relevant to standard SME owner-managed companies

What to do

If your group is in scope, prepare GloBE Information Return and country-by-country reporting. Standard SMEs continue at the 12.5% trading rate.

What changed

Statutory Instrument 301/2024 raised the small company audit exemption thresholds approximately 25%. Companies meeting two of three (turnover ≤€15m, balance sheet ≤€7.5m, employees ≤50) for two consecutive years can claim audit exemption.

Who it affects

• Growing SMEs previously approaching audit thresholds
• Holding companies of small groups

What to do

Re-test your accounts against the new thresholds. If you now qualify, you can drop the audit at the next year-end. CRO filings still required.

What changed

Finance Act 2024 raised the VAT registration thresholds from €80,000 to €85,000 for goods and from €40,000 to €42,500 for services. Once any 12-month rolling period exceeds the threshold, registration is mandatory.

Who it affects

• Sole traders and small companies approaching the threshold
• Service businesses (consultants, agencies) — lower threshold

What to do

Track rolling 12-month turnover monthly. Voluntary registration may still make sense if your customers are VAT-registered businesses.