Budget 2027: Key Tax Measures and What They Mean

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Budget 2027 Analysis

Budget 2027 At A Glance

Budget 2027, delivered on 6 October 2026, is best characterised as a relatively targeted budget which attempts to balance immediate cost pressures with the longer-term fiscal risks created by Ireland’s dependence on corporation tax receipts from a small group of companies.

Overall, Budget 2027 is fiscally cautious rather than transformative. It seeks to provide meaningful personal tax reliefs, cushion households against rising energy costs, and commits significant resources to housing and infrastructure but avoids spending the full benefit of buoyant revenues on permanent tax reductions. From a tax-advisory perspective, its strongest feature is arguably this combination of modest income tax reform with continued balance-sheet resilience, particularly given the unusually concentrated nature of Ireland’s corporation tax base.

Personal Tax Relief and PRSI

For taxpayers, the principal theme is reducing fiscal drag and rewarding employment rather than delivering exceptionally large tax reductions. The standard rate income tax bands are being increased by €2,500, while personal, employee and earned-income tax credits rise by a modest €125 to €2,125. Changes are also being made to the entry point for the 3% USC band.

However, the personal tax reductions need to be considered alongside PRSI increases already legislated. Employee PRSI increased to 4.35% on 1 October 2026 and is scheduled to rise to 4.50% from October 2027. Accordingly, part of the benefit arising from Budget 2027’s income tax measures will ultimately be offset by increasing social-insurance contributions.

Capital and Investment Measures

There are also important measures affecting capital and investment taxation. The increase in the Capital Acquisitions Tax (Inheritance/Gift Tax) tax exempt thresholds and the introduction of new personal investment accounts under which individuals may hold up to €50,000 tax-free, potentially represent a shift towards encouraging personal investment and capital accumulation.

Housing and First-Time Buyer Support

Housing remains a major policy priority. More than €9 billion has been announced for new housing, while support for first-time buyers is being increased and the rent-a-room exemption rises from €14,000 to €16,000 and the definition of qualifying dwellings expanded. The measures recognise that supply remains the fundamental constraint in the housing market. Their success will consequently depend less on the headline expenditure commitment than on whether increased capital allocation translates into additional completed units.

SME Incentives and Employment Costs

For the SME sector, the extension to various tax incentive schemes and enhancements to the Research & Development Tax Credit regime are welcomed. However, the package nevertheless has an important employment cost dimension. The national minimum wage is increasing to €14.94 per hour. For businesses, therefore, the benefit of stronger employee disposable income must be considered alongside rising payroll costs. This is particularly important for hospitality, retail and other labour-intensive businesses.

Conclusion

Overall, Budget 2027’s taxation strategy is incremental and employment focused. Rather than introducing substantial structural reforms to the tax system, the Government has concentrated available resources on widening income tax bands, increasing credits and alleviating household costs. For practitioners, the key issue will now be the detailed implementation of these measures, particularly the capital, investment and property provisions, in the Finance Bill.

View the Budget 2027 highlights here.

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Budget 2027 Highlights

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Budget 2027 HighlightsTánaiste and Minister for Finance, Simon Harris, and Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation, Jack Chambers, delivered the final Budget today, 6 October 2026. Below we outline the highlights of Budget 2027.

Personal Tax

  • Income tax standard rate bands, standard rate cut off point for single person increasing €2,600 to €46,500, with the married single earner band moving to €55,500, and the married dual income band to a maximum of €93,000.
  • Personal, PAYE, Earned Tax credits show a slight of €125 to €2,125.
  • Home carer tax credit increasing by €100.
  • Small change to the 3% rate-band of Universal Social Charge to €30,300.
  • Threshold for tax relief on Tuition Fees will be decreased to align with the Student Contribution Fee.
  • Increase in the Childcare Service Relief income ceiling to €20,000 and remove the cap on the number of children minded.

Capital Acquisitions Tax

  • Exemption Thresholds increasing for Group A to €420,000, Group B to €44,000 and Group C to €22,000. Increased rates take effect from 7 October 2026.

 Enterprise/SMEs

  • The rate of Capital Gains Tax reduced to 31% with effect from 7 October 2026.
  • Employers will be able to choose from 1 January 2027 to report payments to employees under ERR to either real time or on a monthly basis.
  • Employer PRSI weekly earnings level increasing from €552 to €600.
  • Minimum wage increasing to €14.94 per week.
  • Corporation Tax start up relief extended to 31 December 2030.
  • Corporation Tax Preliminary Tax:
    • Preliminary tax requirements are satisfied where at least 80% of the current year liability has been paid by the final preliminary tax instalment date and a top-up payment to reach 100% of the liability is made within four months of the end of the accounting period.
    • Removal of a 45% deeming provision, such that an underpayment of the second instalment of preliminary tax does not result in a deemed underpayment of the first instalment, where the first instalment payment was not of an amount at least equal to 50% of the prior year liability.
    • An increase in the small company threshold from €200,000 to €350,000.
  • EIIS, SCI, SURE and Angel Investor Relief schemes to be extended.
  • R&D Tax Credit:
    • Subcontractor limits increasing to 20% or €200,000
    • First year payment threshold increasing to €105,000
    • Claimant companies to increase qualifying base cost by 5% for qualifying wage costs.
    • Tax Credit to be taken into account for preliminary corporation tax.
    • Science test will be met if where a clinical trial is regulated.
  • Knowledge Development Box scheme extended to end of 2031 and provide limited option to opt out of the regime.
  • PSWT is being modernised by moving to personal deduction rates rather than the current 20% rate on gross payments.

Housing Measures

  • The income exemption ceiling for the Rent-a-Room Relief scheme is increasing by €2,000 to €16,000, will now apply to newly installed auxiliary dwellings (garden rooms).
  • Rent Tax Credit increased to €1,150 per claimant.
  • Help to Buy increase in the maximum relief up to €35,000 for first time buyers
  • Residential Zoned Land Tax, scheme being amended to provide a further opportunity for landowners to request a change in zoning of land.

 VAT

  • Charity VAT Compensation Scheme fund increasing to €15m.

 Agriculture

  • Tax Credit for succession farm partnerships increasing to €10,000 and removal of the three-year holding period.
  • Accelerated Capital Allowances on farm safety equipment to 2029.
  • Farmers VAT flat rate to 4.8%.

Climate/Energy

  • Cut in Carbon Tax on home heating oil and gas back to €48.50 per tonne.
  • Carbon tax increases postponed.
  • Deferral of the phased restoration of Mineral Oil Tax on petrol/diesel/MGO to 28 February 2027, and full restoration to take place at the end of June 2027.
  • Increase to €600 in the exempted profits arising from the domestic generation of electricity.
  • Category A VRT band increasing by 1%.
  • VRT relief on electric vehicles extended to end of 2028.

New Savings Investment Scheme

  • New saving scheme commencing 1 July 2027.
  • Available to Irish resident individuals.
  • Tax rate of 1% on the value above the threshold of €50,000.
  • Maximum annual contribution limit of €12,000.
  • Current taxation treatment of retail investment, including the deemed disposal rule, will not apply to funds held in the new scheme.

Other Measures

  • The bank levy will remain for a further year.

Read our tax team’s analysis of Budget 2027.

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SURE Relief: A Valuable Tax Incentive for Entrepreneurs

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SURE Relief: A Valuable Tax Incentive for Entrepreneurs

Starting a new business can require a significant personal investment. Many entrepreneurs are unaware that tax relief may be available to help reduce the cost of investing in a qualifying start-up company.

Start-Up Relief for Entrepreneurs (SURE) is aimed at individuals who leave employment to establish their own company. Where the qualifying conditions are met, the individual may claim a deduction from total income for a percentage of the amount subscribed for share capital in the new company. Alternatively, the individual may elect to claim the relief against total income in one or more of the six tax years immediately preceding the year in which the shares are issued, rather than claiming it in the current year.

The relief is available where an individual subscribes for “eligible shares” in a “qualifying company”.

Who Can Benefit from SURE?

The general conditions for SURE are that you must:

  • Establish a new company carrying on a new qualifying trading activity
  • Have mainly Pay As You Earn (PAYE) income in the previous four years
  • Take up full-time employment in the new company as a director or an employee
  • Invest cash in the new company by purchasing new shares
  • Keep the purchased shares for at least four years

There are a number of specific conditions that the individual and the company must meet in order to qualify for this relief.

How We Can Help

At Crowleys DFK, we assist entrepreneurs and owner-managed businesses in assessing their eligibility for SURE relief and ensuring that all qualifying conditions are met.  To discuss whether SURE relief may be available for your circumstances, please contact us.

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US Federal Estate Tax: The Hidden Tax Exposure for Irish Investors

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US Federal Estate Tax: The Hidden Tax Exposure for Irish Investors

Many Irish investors assume that US Federal Estate Tax only applies to US citizens or individuals living in the United States. However, this is not always the case. Irish residents who hold certain US assets, including shares in US-incorporated companies, may create an unexpected tax exposure for their estate.

Example

Consider the example of John, who lives in Cork and has worked for a US multinational for over 20 years. During that time, he has accumulated shares in his employer worth €100,000. He also holds a further €50,000 in US company stocks through an investment portfolio. Under the terms of his Will, John’s assets will pass to his wife on his death.

Although John is Irish resident and domiciled, his estate may still have a US tax exposure. Under the Ireland/US tax treaty, assets such as real property and shares are taxable in the country where the asset is located or where the company is incorporated. Assets such as bank accounts are taxable in the jurisdiction in which the deceased was domiciled at the date of death. This means shares in US companies are treated as US-situated assets, giving the United States primary taxing rights for US Federal Estate Tax (FET) purposes.

The current top rate of FET is 40%. While US citizens benefit from a much higher exemption threshold of $16,000,000, the exemption available to non-resident, non-US citizens is only $60,000. As a result, even a relatively modest holding of US shares can give rise to a filing requirement and potential tax liability.

The Ireland/US tax treaty applies to inheritance tax, but not gift tax, and Irish Revenue will allow a credit for the US tax paid. However, there can be a mismatch between the jurisdictions on how inheritances are treated. In Ireland, transfers between spouses are exempt, however in the US, such transfers between non-US citizen spouses are subject to FET. This means that if John leaves his estate to his wife, there is still a liability to US FET.

There can also be practical complications for executors. In many cases, registrars or brokers may not release US shares to an estate until the relevant US tax filings have been completed and formal clearance has been obtained from the IRS.

Conclusion

If you hold shares or investments in US companies, it is important to consider whether your estate could be exposed to US Federal Estate Tax. Advance planning can help identify potential liabilities, reduce delays for your executors and ensure your estate plan operates as intended.

Reach out to us if you hold US investments and would like advice on the potential tax implications for your estate.

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Taxation of Dividends from Irish Companies

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Taxation of Dividends from Irish CompaniesIn accordance with the Companies Act 2014, an Irish company may only pay a dividend out of distributable reserves. A company cannot lawfully distribute capital or pre‑acquisition profits.

All dividends must be paid proportionally to the amount of shares held, subject to any special rights attached to specific share classes.

Tax Treatment of Dividends from Irish Companies

When an Irish company pays a dividend, it is obliged to deduct Dividend Withholding Tax (DWT) at 25% from dividend payments before distributing them to shareholders. This applies to both resident and non‑resident shareholders, unless an exemption applies.

The company paying the dividend must file details of the distribution and remit withheld tax within 14 days of the end of the month in which dividends are paid.

Exemptions from Dividend Withholding Tax

Under the EU Parent/Subsidiary Directive, no DWT is deducted from any distributions made by an Irish resident subsidiary to its parent in another EU Member State. In addition, exemptions from DWT apply in the following circumstances:

  • Payment to Irish resident companies.
  • Payment is to excluded Irish resident persons – certain pension funds, charities and other approved entities.
  • Payments to qualifying non-resident individuals.
  • Payments to qualifying non-resident companies.
  • Payments to qualifying non-resident persons (not being an individual or company).

For the above categories, a completed exemption form must be retained by the company paying the dividend. The exemption forms for corporates and other non-individuals are self-certified, however, in respect of non-resident individuals, their exemption must be certified by the tax authorities in which they are tax resident. The paying company should ensure they renew any exemption certificates every six years.

In the absence of a valid exemption certificate DWT must be applied.

Personal Taxation of Dividend Income

Irish resident individuals are liable to tax on the dividends received from Irish Companies. The dividend income is added to an individual’s total income for the year and liable to tax, USC and PRSI. A credit is granted for the DWT paid.

While the focus is on dividends from Irish companies, it is useful to contrast how foreign dividends are taxed for Irish residents for example:

  • UK dividends: Taxed in Ireland on the net amount received, with no credit for UK withholding.
  • US dividends: Withholding is typically 30% but reduced to 15% with a W‑8BEN. Ireland taxes the gross, with credit for US withholding.
  • Other foreign dividends: Again, taxed in Ireland but depending on where a tax treaty exists between Ireland and the paying country and the conditions thereof, the rate of withholding tax may be reduced or provide relief in respect of the foreign tax withheld.
  • Foreign dividends received by an Irish tax resident individual may suffer Irish Encashment Tax. A credit is available an individual’s Irish tax liability for the Encashment Tax.

Corporate Tax Treatment of Dividends

Irish dividends received by Irish resident companies are considered Franked Investment Income and are exempt from Corporation Tax.

Additionally, from January 1, 2025, a participation exemption applies to qualifying foreign dividends where the shareholder holds at least 5% of the company for 12 months, making such dividends exempt from Irish corporation tax.

If foreign dividends do not meet the criteria for the participation exemption, they are typically subject to Irish Corporation Tax at the standard rate of 25%. However, a reduced rate of 12.5% applies if the dividend is paid from trading profits, provided that, during the relevant period from which the profits are derived:

  • The company distributing the dividend is resident in an EU Member State or a country with which Ireland has a Double Taxation Agreement (DTA); or
  • The main class of shares of the company paying the dividend (or its parent holding at least 75% ownership) has been substantially and regularly traded on a recognised stock exchange in Ireland, the EU, or a DTA country.

The 12.5% regime for foreign dividends has been extended to dividends paid out of trading profits by:

  • A company that is resident in a non-treaty country where the company is owned directly or indirectly by a public company; and
  • A company that is resident in a territory that has ratified the Convention on Mutual Administrative Assistance in Tax Matters.

Where foreign tax on some dividends exceeds the Irish tax payable, the excess credit may be offset against Irish tax arising on other foreign dividends where the foreign tax is less than the Irish tax.

Unused credits can be carried forward indefinitely, but must be reduced by the Irish tax rate, and offset in the same way in subsequent accounting periods.

Excess foreign tax credits arising on dividends must be split into two between credits arising on 12.5% dividends and credits arising on 25% dividends, as excess credits from 12.5% dividends cannot be offset against Irish tax on 25% dividends.

If you require any assistance in this area, please contact us.

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Budget 2026: Strategic Certainty for Irish Business in Uncertain Times

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Budget 2026 Analysis: Strategic Certainty for Irish Business in Uncertain Times

Budget 2026 was delivered by Minister Paschal Donohoe with a clear commitment of investing in the future to safeguard Ireland’s economic stability. For business leaders, the message is one of prudent optimism: the government is balancing fiscal discipline with targeted supports to help enterprises navigate global volatility and seize new opportunities.

Economic Resilience and Fiscal Prudence

Minister Donohoe’s speech underscored Ireland’s robust economic fundamentals – record employment, robust growth in domestic demand, and a healthy public finance position.

Budget surpluses are being used to reduce public debt and build up the Future Ireland Fund and the Infrastructure, Climate and Nature Fund, projected to reach €24 billion by the end of next year. This approach is intended to shield the economy from external shocks and provide a buffer for future demographic and structural challenges.

Housing and Infrastructure: Unlocking Growth

For those looking to buy a home, the government’s focus on housing and infrastructure is particularly significant. Over €5 billion in capital investment is earmarked for housing delivery in 2026, with reforms to planning and design aimed at boosting supply and affordability. Key measures include:

  • VAT reduction on apartment sales (from 13.5% to 9%) to stimulate construction and address viability gaps.
  • New Derelict Property Tax and extension of the Residential Development Stamp Duty Refund Scheme to incentivise regeneration and development.
  • Additional funding for Home Building Finance Ireland, including €200 million for SME builders.

These initiatives are designed to ease housing pressures, support workforce mobility, and enhance Ireland’s attractiveness as a location for investment.

Taxation and Business Supports

Budget 2026 introduces several measures to support enterprise competitiveness and innovation:

  • Reduced VAT for hospitality and hairdressing to 9% effective July 2026, supporting over 150,000 jobs.
  • Enhanced R&D tax credit, increased to 35%, and improvements to the Key Employee Engagement Programme (KEEP) to help SMEs attract and retain talent.
  • Revised Entrepreneur Relief, raising the lifetime gains limit from €1 million to €1.5 million, and a new stamp duty exemption for SMEs and start-ups trading on regulated markets.
  • Participation exemption and interest regime reforms to simplify the tax code and align with international best practice.

The government is also investing in digitalisation, green transition, and access to finance, with continued support for the Digital Games Tax Credit, Accelerated Capital Allowances for energy-efficient equipment, and targeted grants for sustainability projects.

Labour Market and Cost Pressures

With the minimum wage rising to €14.15 per hour and ongoing cost-of-living challenges, the Budget includes adjustments to the Universal Social Charge (USC) to ensure low earners are not penalised. The increased minimum wage though will add to the cost pressures that many small businesses are operating under.

While the extension of the Foreign Earnings Deduction (FED) and Special Assignee Relief Programme (SARP) and supports international mobility and export growth, the increase in the minimum entry salary threshold for the latter to €125,000 is restrictive.

Climate and Sustainability

Budget 2026 maintains Ireland’s commitment to climate action, with increased carbon taxes, extended supports for retrofitting and electric vehicles, and incentives for renewable energy generation. Revenues from carbon taxes are ring-fenced for social welfare and just transition measures, ensuring a balanced approach to sustainability.

Conclusion: Certainty, Competitiveness, and Confidence

For now, the days of “one-off’’ relief measures and ‘’give away budgets” are over. Budget 2026 is not about satisfying short-term objectives. People are now being asked to commit to strategic choices that will sustain Ireland’s economic success and competitiveness and enable a more balanced return for all in the future. That’s the theory anyway!

View the Budget 2026 highlights here.

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Budget 2026 Highlights

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Budget 2026 HighlightsMinister for Finance, Paschal Donohoe delivered the final Budget today, 7 October 2025. Below we outline the highlights of Budget 2026.

Personal Tax

  • No changes announced to Income Standard Rate Bands with the single band remaining at €44,000, with the married single earner at €53,000, and the married dual income band at €88,000.
  • Personal, PAYE, Earned Tax credits: similarly no changes to personal tax credits.
  • Rent Tax Credit: while remaining at €1,000, a commitment to increase over time was announced along with an extension of the credit to the end of 2028.
  • Small change to the second rate-band of Universal Social Charge to €28,700. The concession for full medical holders earning less than €60,000 is to be extended by two further years.
  • Mortgage Interest Tax Relief extended for a further two years with a reduced value applying in the final year.

 Enterprise/SMEs

  • Entrepreneur Relief: the lifetime threshold increases to €1.5m from 1st January 2026.
  • Key Employee Engagement Programme (KEEP) is being extended to the end of 2028.
  • The Special Assignee Relief Programme is being extended for a further five years, with the minimum qualifying income increasing to €125,000 to ensure the relief is appropriately calibrated. Measures to be introduced in the Finance Bill to streamline the administration process.
  • Foreign Earnings Deduction extended for a further five years.
  • The Research & Development Tax Credit is increasing from 30% to 35% and first year payment threshold increased from €75,000 to €87,500.
  • Participation Exemption extended to jurisdictions where no refundable withholding taxes apply.
  • Subject to commencement orders, the Section 481 Film Tax Credit is being enhanced to provide for a new 40% rate of relief for productions of at least €1m qualifying expenditure on visual effects work.
  • Digital Games Tax Credit extended to 2031, however this is subject to a commencement order.
  • A joint Department of Finance and Revenue along with public consultation on Withholding Taxes.

Housing Measures

  • A further opportunity for exemption in 2026 from the Residential Zoned Land Tax (RZLT) if landowners seek to have their lands re-zoned.
  • Exemptions or reductions in Corporation Tax on profits from the sale of some apartments, included in Cost Rental Schemes.
  • An enhanced Corporation Tax deduction for construction and conversion of apartments – from 8 October to end of 2030.
  • A Derelict Property Tax will replace the site levy which currently is charged at 7%. No rate yet announced but it is anticipated that it will not be less than 7%. Preliminary registers of dereliction will be published in 2027, with the tax being applied soon afterwards.
  • VAT rate of 9% on sale of new apartments from 8 October.
  • Residential Development Stamp Duty Refund Scheme is to be extended to 2030.
  • Living City Initiative extended to 2030 in special regeneration areas, an increase scope of properties for those constructed prior to 1975 and extending to “over the shop” properties. Five new regional centres being introduced into the initiative. Finally, relief is being increased from €200,000 to €300,000.
  • The deduction for Pre-Letting Expenditure from rental income will be extended for a further three years, to the end of 2030. The deduction is capped at €10,000 per property.
  • Home Building Finance Ireland to have additional funding of €200m to support home builders.

 VAT

  • In addition to the changes applying to the sale of new apartments, the reduced 9% rate will apply from 1 July 2026 for food catering businesses and hairdressing.
  • The 9% VAT rate for Gas and Electricity supplies is extended to the end of 2030.
  • Revenue are to introduce a phased role out of domestic electronic invoicing.

 Agriculture

  • The four Agricultural Tax Reliefs pertaining to Stamp Duty and Capital Gains Tax have been extended to 2029. The Farm Restructuring Relief is being expended to include woodlands and forestry.
  • The Extended Capital Allowance regime for slurry storage facilities has been extended for a further four years.

Climate

  • The Carbon Tax increase to €71 per tonne of CO2 emitted applies to auto fuels from 8 October and to all other fuels from 1 May 2026.
  • VRT Relief on electric vehicles extended for a further one year.
  • The Universal Relief on the OMV on electric vehicles will remain at €10,000 in 2026 and taper off to €5000 in 2027, €2,500 in 2028 and cease in 2029.
  • Accelerated Capital Allowances on Energy Efficient Equipment extended for a further five years to end of 2030.
  • Income tax disregard of €400 for income received by households who sell electricity to the grid extended to 2028.

Other Measures

  • The rate of tax on offshore funds and foreign life assurance products is to be reduced from 41% to 38%.
  • The bank levy will remain for a further year.
  • A separated Pool Betting charge to be announced after consultation in Budget 2027.
  • Excise Duty on tobacco products will increase by 50 cent from 8 October.

Read our tax team’s analysis of Budget 2026.

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Tax Guidance for Social Media Influencers: What You Need to Know

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With an increase in those earning income from social media and promotional activities, the Revenue Commissioners have issued a manual to reiterate that such income is liable to tax based on the application of ordinary tax rules.

Types of Taxable Income

Income derived from social media or promotional activities is chargeable to tax, even in circumstances where the activity is conducted on a casual basis only and is not the individual’s or company’s main business or main source of income.

Such income can be in the form of subscriptions, advertising, sponsorship, brand ambassadorship or endorsement fees and may be monetary or non-monetary in nature. Where the receipt is in non-monetary form, i.e. goods/services, then the value of such must be determined and is regarded as income.

Determining If Social Media Activities Constitute a Trade

Whether the profits or gains derived from social media or promotional activities arise in the course of a trade is a question of fact, having regard to the particular facts and circumstances of each case and also having regard to the ‘badges of trade’ and caselaw.

Example: Full Time Influencer

Orla is an adventure travel enthusiast. She is a full-time travel blogger and regularly posts content on various social media channels. She receives income from sponsored blog posts and affiliate marketing. Orla’s social media activity is carried out on an ongoing, frequent basis with the intention of making a profit. Her activity has the characteristics of a trade. She is obliged to return the income as Case I income.

Deductible and Non-Deductible Expenses

In computing the profits assessable to tax, certain expenses may be deducted provided they are:

  • Revenue and not capital in nature,
  • Incurred wholly and exclusively for the purposes of the trade, and
  • Not specifically disallowed in law.

When considering if an expense was incurred wholly and exclusively for the purposes of the trade, one should be aware that if the expense has both a business and non-business purpose then the entire expense is disallowed, e.g. clothes. Similarly, hair and make-up expenses are also disallowed.

If carrying on a trade, a deduction for capital expenses, in the form of capital allowances, may be available. However, if the income is derived from ad-hoc activities, then no deductibility is permitted for capital expenses.

Example: Casual Influencer

John is a full-time software developer who enjoys mountain hiking in his spare time. He pays an annual subscription to an online map and trails app. He posts reviews of trails and landscape photographs online on social media channels one or two times a year. People with occasionally contact John to purchase a photograph he’s posted on social media. He is obliged to declare the profit from the online activities. When calculating the taxable profit from the activity, he is allowed to deduct the costs of print, post and stationery incurred from sales of his photographs. The costs of the annual subscription to the hiking app or the cost of hiking clothing is not deductible, as the costs are a personal cost and not incurred directly in the provision of the social media content.  As John is not carrying on a trading activity capital allowances, e.g. on photographic equipment, are not available.

Business Structures and VAT Considerations

Such activities may be carried on by a person through a sole trade, partnership or a company.

In addition to Income Tax and Corporation Tax, persons carrying on a business need to be aware of their obligations to register and account for VAT should the value of their supplies exceed the relevant registration thresholds.

For further information on tax guidance for social media influencers, please contact us.

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Transborder Workers’ Relief: A Guide for Irish Residents Working Abroad

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With the rise in cross-border employment, Irish tax residents working abroad may qualify for a significant tax relief known as Transborder Workers’ Relief. This article outlines the key eligibility criteria and how the relief is calculated.

What is Transborder Workers’ Relief?

Transborder Workers’ Relief is a tax relief available to individuals who are resident in Ireland but work and pay tax in another country. The relief effectively removes the earnings from a qualifying foreign employment from liability to Irish tax, provided that foreign tax has been paid and is not refundable.

Who Qualifies?

To claim the relief, the following conditions must be met:

  • You must be resident in Ireland for tax purposes,
  • You must work full-time in another country that Ireland has a double taxation agreement for a continuous period of at least 13 weeks,
  • You must pay tax in the foreign country on your employment income and are not due a refund of the tax paid,
  • You must be present in Ireland for at least one day for every week worked abroad.

It is important to note that the relief does not apply if the individual receives Seafarers’ Allowance, Foreign Earnings Deduction (FED), or split year treatment. Additionally, one cannot claim relief if they or their spouse or civil partner are proprietary directors of the company for which they work abroad.

How is the Relief Calculated?

The relief is calculated using a formula that determines the “specified amount” of Irish tax that can be relieved:

Specified Amount = (Total Irish Tax Due × Non-Foreign Income) ÷ Total Income

This means that the relief only applies to the portion of Irish tax attributable to the foreign employment income. You will not receive any credit for foreign tax paid if you qualify for transborder relief.

How to Apply

The relief is claimed through the annual income tax return (Form 11). Supporting documentation, such as foreign payslips, tax certificates, and travel records, may be required by Revenue.

Conclusion

Transborder Workers’ Relief can offer significant tax savings for Irish residents working abroad, but it requires careful planning and accurate reporting. If you think you may qualify, our tax team at Crowleys DFK is here to help.

 

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Residential Premises Rental Income Relief (RPRIR)

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Residential Premises Rental Income Relief (RPRIR)

The Residential Premises Rental Income Relief (RPRIR) was introduced in Budget 2024 to support the Irish rental market by incentivising landlords to retain properties for long-term letting. This article outlines the key features of the relief, eligibility requirements, and how landlords can benefit.

What is RPRIR?

RPRIR is a tax credit available to landlords who rent out qualifying residential properties. The relief is available from 2024 to 2027 and is designed to encourage continued participation in the rental market. The credit is valued at up to a maximum of €600 in 2024 and is set to increase in subsequent years.

Who Can Claim the Relief?

RPRIR is available to all individual landlords of ‘qualifying premises’. The relief is not available to companies or other entities such as trusts or partnerships.

Qualifying Premises:

A qualifying premises refers to a residential property owned by the landlord on 31 December in the year of assessment. The property must meet one of the following conditions:

1. It is occupied by a tenant:

  • under a tenancy registered with the Residential Tenancies Board,
  • let by the landlord to a public authority, or
  • subject to Part II of the Housing (Private Rented Dwellings) Act 1982, which pertains to formerly rent-controlled tenancies;

2. Alternatively, if the premises is not occupied by a tenant, the landlord must be actively marketing the property for rent.

In cases where RPRIR is claimed based on active marketing for rent, the landlord must provide evidence to support this claim, such as copies of advertisements for the letting.

Other Eligibility Criteria:

To qualify for RPRIR, a landlord must, on 31 December of that year, be:

  • compliant with their LPT obligations in respect of all qualifying premises, and
  • hold a valid Tax Clearance Certificate.

Conclusion

Residential Premises Rental Income Relief offers a valuable opportunity for landlords to reduce their tax liability.

For further guidance or assistance with your tax return, please contact us.

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