Government publishes Action Plan for Reform of Ireland's Taxation Regime for Interest
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From: Department of Finance
- Published on: 7 October 2025
- Last updated on: 7 October 2025
The Government has today (7 October) published an Action Plan for the reform of Ireland’s taxation regime for interest.
The Action Plan is informed by the responses received to the extensive public consultation on the tax treatment of interest in Ireland, published in September 2024, which highlighted the need for fundamental reform of the underlying framework for the taxation and deductibility of interest.
The Action Plan sets out a phased approach to progressing reforms in a way that achieves a simplified regime that supports competitiveness and protects the tax base. A feedback statement will be published in November seeking responses from stakeholders to proposals to address key issues identified as part of the consultation, with a view to addressing these issues as part of next year’s Finance Bill. Additional areas of reform will be addressed under subsequent phases.
Minister for Finance, Paschal Donohoe, said:
“It is critical that we continue to seek new ways to ensure that our tax code is competitive, attractive to investment and aligned with international best practice. Accordingly, I am pleased to announce publication today of an Action Plan for the reform of Ireland’s taxation regime for interest.
The proposed reform of Ireland’s taxation regime for interest is intended to help safeguard competitiveness by providing a sound and stable basis for both domestic and inward investment in Ireland. It will also provide administrative simplification and give greater certainty to Irish businesses, while continuing to ensure that Ireland’s corporation tax system for interest is fair and sustainable.”
ENDS