{"id":107069,"date":"2025-10-07T17:36:08","date_gmt":"2025-10-07T17:36:08","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/107069\/"},"modified":"2025-10-07T17:36:08","modified_gmt":"2025-10-07T17:36:08","slug":"paschal-donohoe-to-cut-funds-tax-and-scrap-stock-trading-duty-on-firms-worth-up-to-e1bn-the-irish-times","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/107069\/","title":{"rendered":"Paschal Donohoe to cut funds tax and scrap stock trading duty on firms worth up to \u20ac1bn \u2013 The Irish Times"},"content":{"rendered":"

Tax on gains made by Irish investors in investment funds is set to be reduced and stamp duty on share trading in public companies worth up to \u20ac1 billion will be scrapped, Minister for Finance Paschal Donohoe<\/a> said, as he set out to make it easier for individuals to invest. <\/p>\n

The Minister also signalled in his Budget 2026<\/a> speech that he will look at establishing a tax-efficient savings and investment accounts regime as part of a roadmap to be published early next year to encourage investment among individuals. <\/p>\n

\u201cIn recognition of the importance of encouraging retail investment, today I am reducing the tax rate that applies to Irish, and equivalent offshore funds and foreign life assurance, products from 41 per cent to 38 per cent,\u201d Mr Donohoe said. <\/p>\n

It falls short of a recommendation in a Department of Finance report last year, which said the rate should be aligned with the 33 per cent capital gains tax rate that applies to direct investments from stocks to property.<\/p>\n

Under current rules, domestic investors in funds must pay a 41 per cent tax on the sale of a fund, irrespective of what income tax bracket they are in, or after eight years \u2013 whichever comes first. This is known as the deemed disposal rule. <\/p>\n

Patricia Callan, director of Financial Services Ireland, said the reduction was \u201can important first step to address issues in our tax system that disincentivise consumer investment in funds\u201d. <\/p>\n

\u201cFurther steps are needed, however,\u201d she added. <\/p>\n

[\u00a0Budget 2026 Q&A: Submit your questions to our expertsOpens in new window<\/a>\u00a0]<\/p>\n

Ireland and has become Europe\u2019s main home for exchange-traded funds (ETFs), a fast-growing fund type that can hold everything from shares that track a stocks index to baskets of bonds or commodities. However, less than 0.9 per cent of the net \u20ac781 billion of net wealth of Irish households was held in ETFs in 2019, according to the Central Bank of Ireland.<\/p>\n

The Minister said removing stamp duty on share trading in Irish companies with market capitalisations of up to \u20ac1 billion was \u201cessential to the growth of home-grown businesses especially those aiming to expand internationally\u201d. <\/p>\n

However, the 1 per cent rate will continue to apply to share trading in larger companies, including the 11 biggest groups on the Irish stock market. <\/p>\n

The rate was cited by insulation group Kingspan last month as one of the reasons why it is planning to float its advanced building systems unit Advnsys in Amsterdam early next year. To avoid the duty, Advnsys, which is focused on the global data centres boom, is likely to be registered as a Dutch company. <\/p>\n

Mr Donohoe said the roadmap to \u201csimplify and adapt the tax framework\u201d to encourage retail investment will take into account the European Commission\u2019s recommendation last week that Governments establish tax-efficient savings and investment accounts regimes. <\/p>\n

Euronext Dublin has been lobbying hard in recent years for the establishment of a savings and investments account regime as it seeks to reboot the Dublin stock market, which has seen a number of company exits and a dearth of flotations in recent years. <\/p>\n

Irish households currently have more than \u20ac160 billion of cash on deposit with banks, about 85 per cent of which is earning little or no interest in current and on-demand deposit accounts, according to Central Bank data. <\/p>\n","protected":false},"excerpt":{"rendered":"Tax on gains made by Irish investors in investment funds is set to be reduced and stamp duty…\n","protected":false},"author":2,"featured_media":107070,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[73],"tags":[10471,79,18,19,17],"class_list":{"0":"post-107069","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-budget","9":"tag-business","10":"tag-eire","11":"tag-ie","12":"tag-ireland"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/107069","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=107069"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/107069\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/107070"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=107069"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=107069"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=107069"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}