Reflecting on 2025 and looking ahead into 2026, Ireland continues to see record-high corporation tax revenues. In 2025, receipts climbed sharply, rising around 17% year-on-year to nearly €33 billion. This reflects robust economic activity and the continuing contribution of large multinationals to the Exchequer. Ireland faces the dual challenge of harnessing its strong corporate tax base while adapting to international tax reforms and maintaining its attractiveness as a base for investment. Ireland’s corporate tax landscape in 2026 is being shaped by strong revenue performance domestically, and significant shifts in the global tax architecture that will influence multinational behaviour in years to come.
International
As mentioned above, Foreign Direct Investment (“FDI”) and its fiscal attractiveness remain key for Ireland’s economic sustainability. A central theme for 2026 is the ongoing implementation of the OECD’s Pillar Two global minimum tax. This framework, agreed internationally to ensure large multinationals pay at least a 15% effective tax rate, continues to be phased into Irish law. Large groups with global revenues of over €750 million are subject to top-up tax provisions designed to bring their Irish effective tax rate up to the minimum where necessary. At the start of 2026, the OECD released a “Side-by-Side” package of administrative guidance, including new safe harbours, and simplifications that modify how Pillar Two rules apply. For example, creating exemptions for groups headquartered in jurisdictions with qualifying tax systems. These updates aim to streamline compliance and reduce the administrative burden for in-scope multinational enterprises.
Domestic
Budget 2026, delivered in autumn 2025, kept Ireland’s headline corporate tax rate at 12.5%, maintaining a cornerstone of the country’s competitiveness for inward investment.
Alongside this, the Budget introduced targeted fiscal tweaks to support business investment and entrepreneurship:
- Enhanced research & development (R&D) tax credit, with an increased rate to encourage innovation.
- Broader participation exemptions for foreign dividends to reduce double taxation on certain international income flows.
- Amendments to capital allowances and reliefs aimed at stimulating activity in strategic sectors.
Conclusion
Ireland remains a leading jurisdiction in global tax and fiscal planning. As both a gateway to Europe for non-EU headquartered companies and a stable jurisdiction with a highly skilled workforce. Its government continues to support FDI through effective legislation, beneficial schemes, broader exemptions and a robust challenge to changes that will weaken its position.
If you are considering Ireland as your strategic gateway to Europe, get in touch with our team today.
