Global tax reform changes client focus - Derek Henry for Business Plus

What aspects of business-related tax are busier for your firm now than in former years? 

Given the ongoing housing and infrastructural supply issues in Ireland, we’re seeing a significant increase in enquiries around structuring property investment, financing, and tax-efficient development. As more Irish businesses scale, innovate and target international capital, demand has grown for structuring that secures access to the right reliefs and incentives. In parallel, the effects of global tax reform and cost pressures mean clients are more focused on exposure across cross-border operations and their Irish base. 

How well does Budget 2026 address the challenges the economy is currently facing in your view?  

The Government is continuing to invest in housing, infrastructure, and innovation, while keeping an eye on long-term fiscal sustainability. But challenges remain — particularly around housing delivery, cost pressures, and Ireland’s heavy dependence on corporate tax receipts. 

SMEs certainly feel there was not much done generally to support the challenges that they are facing at a time when the Government should focus on strengthening the indigenous economy in the face of global concerns and the sustainability of the corporate tax receipts. 

Overall, this is a steady, responsible Budget that aims to balance support for households and businesses with the need to plan for the future. The real test will be how effectively these commitments are delivered in the year ahead and whether, as a collective, they will have the outcomes required.

Which Budget 2026 measures do you consider most supportive for businesses, and where do you believe the Budget falls short in addressing the key tax and operational challenges facing your clients?

Housing remains the big challenge, and the Government has put it at the centre of this year’s Budget. A total of €5 billion is being committed to housing delivery in 2026, alongside a reduction in VAT from 13.5% to 9% on new-build apartments to help get more projects off the ground. The target is to deliver around 25,000 new homes next year, including over 10,000 social homes.  

Beyond housing, there is a major focus on infrastructure. The overall capital investment programme amounts to about €19 billion, funding projects in transport, water, and healthcare. These investments are intended to tackle long-term capacity issues that have been holding back growth. The Government is also continuing to set aside parts of the corporate tax windfall into the Future Ireland Fund and the Infrastructure, Climate and Nature Fund — a prudent move that supports both future investment and fiscal stability.  

For business, this year’s Budget is about stability and long-term competitiveness rather than dramatic change. The R&D tax credit is increasing from 30% to 35%, a welcome boost for innovative and high-growth companies. The reduction in VAT on apartment construction should also improve housing supply — a key issue for both employers and workers. A new Small Business Unit and National Enterprise Hub will be established to make it easier for SMEs to access advice and supports. The Government has been careful to avoid broad tax giveaways, focusing instead on measures that encourage sustainable investment and job creation. There is also a clear recognition that Ireland’s reliance on a handful of multinational taxpayers is a risk that needs to be managed carefully. We do feel that there are a number of missed opportunities here. Given global headwinds, it is essential that we support a strong and vibrant business sector. While this budget is more pro-business than previous budgets, businesses will likely feel that more could be done.

Any further thoughts on tax-related matters over the past year or measures in Budget 2026 that might be of interest to our SME readers? 

From an SME standpoint, three developments are particularly relevant this year. 

First, the increase in the R&D tax credit to 35%, along with the higher first-year payment cap of €87,500, makes innovation funding more accessible to smaller businesses. For many owner-managed firms, that translates directly into better cash flow and the ability to reinvest in product or process development. At BDO, our R&D team has decades of experience, a 99% success rate and one of Ireland’s strongest Revenue audit records — helping clients secure incentives with confidence and minimal disruption. 

Second, the enhanced Entrepreneur Relief, now offering a €1.5 million lifetime gains cap at 10% CGT, supports founders planning to transition, reinvest or diversify. This aligns with the growing need for strategic finance support among scaling, founder-led businesses. Our Entrepreneurial Services division was created specifically to help such companies build strong financial foundations. 

Third, while Pillar Two’s 15% minimum tax applies only to groups with global revenues above €750 million, supply-chain effects are filtering through to SMEs working with multinational customers. Our Customs & International Trade team is helping Irish exporters and importers assess how these global tax and regulatory changes intersect with customs valuation, transfer pricing and cross-border compliance — ensuring businesses stay agile and competitive as international frameworks evolve. 

What does the future hold for business in Ireland? And particular trends to look out for? Any particular obstacles to be overcome for business to thrive?   

I’m cautiously optimistic. Continued investment through the Future Ireland and Infrastructure, Climate & Nature Funds should support long-term stability, but housing and infrastructure delivery remain defining challenges — with living costs and talent availability key concerns. Key themes to watch: 

• Increasing focus on sustainability, ESG and retrofit/green investment
• Businesses will reassess sourcing, footprint and tax jurisdictions; Ireland’s open economy position is an asset.
• Infrastructure & housing constraints due to rising living costs, commuting issues, and availability of talent.
• Global tax reform pressures: The international tax landscape (BEPS-type reform, digital tax, interest limitation rules) continues to evolve; businesses must remain agile and compliant to avoid surprise liabilities.

Content adapted from Business Plus.