REFORM OF TAXATION OF INTEREST RULES IN IRELAND
The Irish Department of Finance published a comprehensive review on the taxation of interest in Ireland in September 2024. The review forms part of broader work by the Department on modernising Ireland's tax system.
As part of its ongoing engagement with the Department of Finance on Irish tax policy and modernising the Irish tax system, Arthur Cox LLP submitted a response highlighting the necessity for a full reform and modernisation of the rules to bring Ireland in line with EU and international norms.
For more information, please see our Briefing: Responding to the Public Consultation on the Tax Treatment of Interest in Ireland.
EU TAX POLICY UPDATE
Tax incentives to achieve the Clean Industrial Deal
The Clean Industrial Deal Communication was published on 26 February 2025. It indicates that tax policies are a key incentive to reach the objectives of the Clean Industrial Deal. In the second quarter of 2025, the European Commission will publish a Recommendation to Member States that their corporate tax systems must support a clean business case. The Communication indicates that measures could include, accelerated depreciation regimes, allowing for shorter depreciation periods for clean technology assets, and tax credits for businesses in strategic sectors for the clean transition. This will coincide with the new simplified Clean Industrial Deal State Aid Framework that will introduce more flexible and streamlined State Aid rules in order to enable necessary and proportionate State Aid that crowds in private investment.
March Meeting of EU Finance Ministers
European Finance Ministers will meet on 11 March as part of the Economic and Financial Affairs Council configuration (ECOFIN). Discussions will focus on enhancing competitiveness and simplifying the business environment with agreement expected to be reached on a timeline for the EU Commission to declutter EU tax legislation in 2025.
Reaching political agreement on the ninth amendment to the Directive on Administrative Cooperation (DAC 9) is also on the agenda. DAC 9 seeks to simplify tax filing obligations arising under the EU Pillar Two Directive ensuring a global minimum level of taxation for large multinational enterprise groups in the EU. DAC 9 envisages an MNE Group filing one GLOBE top-up tax information return at central level with one Member State for the entire group. This form would be standardised in the EU in line with that developed by the Inclusive Frame of the OECD and a system for tax authorities to exchange information would be developed.
This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.
