PwC Ireland has outlined proposals for Budget 2027, urging the government to prioritise long‑term measures that improve productivity and competitiveness.
The firm recommends targeted reforms to modernise the research and development (R&D) tax regime, enhance Ireland’s appeal as an “innovation hub,” and better support domestic enterprises alongside foreign direct investment.
A key suggestion is a phased reduction of capital gains tax to 20%, intended to stimulate investment, encourage reinvestment in Irish businesses, and help retain ownership domestically.
PwC also seeks clearer tax rules for business transfers and succession, proposing legislative changes so genuine commercial transactions are taxed as capital gains rather than income.
The firm proposes the introduction of employee ownership trusts, modelled on the UK system, to enable owners to transfer businesses to their employees.
On administration, PwC recommends short‑form, pre‑populated corporation tax returns and a comprehensive “root‑and‑branch” review of the tax system to make it more accessible and proportionate for smaller firms.
The firm notes that the tax system is crucial for competitiveness and points out Ireland’s lack of an independent Revenue Ombudsman, unlike many peer economies, urging the creation of such an office to improve transparency and trust.
Beyond tax, PwC highlights secure, clean and affordable energy as a core determinant of economic competitiveness and calls for a longer‑term approach in this area.
It also identifies housing supply as a major constraint on talent attraction and overall economic performance.
PwC Ireland Tax head Paraic Burke said: “Housing shortages, infrastructure bottlenecks, grid congestion, energy supply challenges, persistent skills gaps and cost pressures are immediate risks shaping Ireland’s economic outcomes.
In response, we are calling for targeted, practical measures in Budget 2027 across innovation, renewable energy, modern construction and private enterprise to sustain growth, ensuring a competitive economy where prosperity is shared across regions.”
