Finance Minister Simon Harris confirmed to The Journal that the tax rate on deemed disposal of investment funds will be reduced from its current level to 35% starting in January. The change aims to align Ireland’s tax policy with international standards and improve competitiveness for financial institutions.
The adjustment follows a review of the tax framework, which has been in place for several years. Harris described the current rule as “something we need to move beyond,” indicating a shift toward more modern and efficient tax practices. The new rate will apply to all investment funds registered in Ireland, including both domestic and international entities.
This policy change comes amid broader efforts to update Ireland’s financial regulations to reflect global market trends. The government has been working closely with financial sector representatives to ensure the new tax rate does not negatively impact investment flows. The move is expected to simplify compliance for fund managers and reduce administrative burdens.
The deemed disposal tax was introduced to address tax avoidance strategies, but critics have argued it creates complexity and reduces transparency. The revised rate is seen as a step toward balancing regulatory oversight with business efficiency. The government has not yet released detailed figures on the expected impact of the change.
