Commission on Taxation and Welfare Public Consultation
As AmCham outlined in its 2022 pre-budget submission to Government entitled ‘Next Century Ireland’, and as will be highlighted in this consultation, AmCham believes there are a number of actions which could be utilised to improve the Irish tax code. These include:
- Reforming the R&D Tax Credit:
- Expansion of the list of qualifying scientific fields within the R&D Tax Credit, to include artificial intelligence, data analytics, digitalisation, and other emerging technologies from the field of Industry 4.0 and carbon neutrality.
- Publication of additional Revenue Guidance on qualifying expenses, aimed at removing uncertainty from the audit process.
- Simplification of the annual reporting requirements.
- Review of potential to reform the restrictions of third-party cost, within permitted state aid rules.
- Expansion of the guidance on the applicability of 291A (including how data is defined)
- Public consultation on how to improve the competitiveness of Ireland’s inbound royalties’ regime
- Increasing the capacity of knowledge intensive sectors within the Revenue Commission
- Further reform interest limitation rules
- Expansion of supports from the Revenue Commissioners including:
- increased guidance on audit preparation
- consideration of including issues relating to TP within the CCF audit regime.
AmCham notes the separate consultation by the Department of Finance on moving to a territorial system of taxation.
Furthermore, as AmCham has previously outlined in its pre-budget submission, and building on the commitments in the Climate Action and Low Carbon Development Act, AmCham is calling for a review of Ireland’s corporate tax regime for the transition to a carbon neutral economy. Issues for consideration within the review include:
- The potential development of guidance on the tax treatment and accounting principles for investment in tangible and intangible sustainable assets
- An assessment of the competitiveness of sustainable investment and green finance in Ireland.
Read the full submission here