PwC Ireland has outlined proposals for Budget 2027, urging the government to prioritise long-term measures that improve productivity and competitiveness.
The company called for targeted reforms to modernise the research and development (R&D) tax regime, boost Ireland’s appeal as an “innovation hub” and better support indigenous enterprises, alongside foreign direct investment.
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A key proposal is a phased cut in capital gains tax to 20%, aimed at stimulating investment, encouraging reinvestment in Irish businesses and supporting the retention of business ownership in Ireland.
PwC is also seeking clearer tax rules for business transfers and succession, recommending legislative changes so that bona fide commercial transactions are treated as capital gains rather than income.
It further proposes the introduction of employee ownership trusts, based on the UK model, to allow owners to transfer businesses to employees.
On administration, the company recommends short-form, pre-populated corporation tax returns and a wider “root and branch” review of the tax system to make it more accessible and proportionate for smaller businesses.
PwC noted that the tax system is vital for competitiveness and notes that Ireland lacks an independent Revenue Ombudsman, unlike many peer economies. It is advocating 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.”
