Technical update

Budget 2027

Budget 2027 will cut taxation, notably raising the earnings threshold for paying high-rate tax (40%) by €2,500 to €46,500. The government also hiked Ireland’s personal, employee and earned income tax credits by €125, and lowered the standard rate of capital gains tax from 33% to 31%. The research and development tax credit was increased by raising limits on subcontracting to third-level institutions and third parties, from 15% to 20% or €100,000 to €200,000, whichever is the greater.

Irish investment account

The finance ministry has created a technical forum to help develop the IT infrastructure needed for the planned new Irish Investment Account, scheduled to launch on 1 July 2027. The forum will include representatives from the Revenue, Irish investment account providers and third-party software suppliers. The forum will focus on how technology will deliver account opening, eligibility validation, account lifecycle processes and pay and file obligations. Would-be forum participants should email investmentaccounttechnicalgroup@revenue.ie.

Online purchases

Revenue has advised Irish consumers shopping online that from 1 November 2026 they must pay a €2 handling fee for each distinct item bought from outside the EU (including Great Britain, but not Northern Ireland). This fee is separate from and additional to the €3 customs duty levied since July and is not refundable, even for faulty goods.

The fee will apply to all e-commerce goods, regardless of value, where a seller ships goods from outside the EU to a consumer in Ireland. The charge is intended to cover the increased costs being incurred by Customs authorities as a result of the huge growth of e-commerce.

Insurance levy

The Central Bank of Ireland has reduced the insurance compensation fund levy to 0%, from 1 January 2027, down from 1% this year. It marks the first time the levy, which protects eligible policyholders in the event of their insurer going into liquidation, has been set at 0% since it came into effect in 2012.

Deputy governor Mary-Elizabeth McMunn says the changes reflect the financial position of the fund and follows the full repayment of the outstanding loan balance to the Exchequer, and that the reduction will positively impact a large cohort of policyholders in Ireland. The Central Bank will continue to conduct annual reviews of the fund and, should circumstances change, the levy may too.

The reduction will help holders of non-life insurance policies such as home and motor insurance and was welcomed by the finance ministry.

Sustainability reporting assurance

The Irish Auditing and Accounting Supervisory Authority (IAASA) has clarified Ireland’s statutory and regulatory framework for third-country auditors and audit firms seeking approval to undertake sustainability reporting assurance. The guidance details how firms can prove their aptitude and experience about this work, and the regulator has issued a letter to the CEOs of recognised accountancy bodies, including ACCA.

Auditing standards revisions

The IAASA has also revised auditing standard ISA (Ireland) 240, Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements, and ISA (Ireland) 570, Going Concern. The revised standards will apply to audits of financial statements for periods beginning on or after 15 December 2026.

Accountancy profession

The International Federation of Accountants (IFAC) has released a global framework of six principles to create healthy and sustainable professional environments within the accounting profession. Called Thriving Together: 6 Principles for a Resilient Accountancy Profession, the practical framework looks to accountancy firms, leaders and individuals to support fulfilling careers, embed sustainable ways of working, promote balance through healthy boundaries and prioritisation, build transparency and trust, ensure all leadership levels set and model (a positive) culture, and empower staff. ‘The principles reflect growing recognition across the profession that wellbeing and professional capability are complementary,’ says IFAC.

Ethics

The International Ethics Standards Board for Accountants (IESBA) has released practical guidance to support the implementation of the International Ethics Standards for Sustainability Assurance (IESSA). The advice addresses effective date and transitional provisions, the rotation of engagement leaders and other key sustainability assurance leaders, and non-assurance services (including services provided before accepting a sustainability assurance engagement).