Dáil Éireann Debate, Wednesday - 15 October 2025
110. Deputy Aisling Dempsey asked the Minister for Finance if he would consider allowing farmers to average their taxable income over a multi-year period; and if he will make a statement on the matter. [55749/25]
View answerA farm income stabilisation tax measure currently exists in the form of income averaging. Section 657 of the Taxes Consolidation Act 1997 allows farmers to pay tax based on the average of five years’ farming profits and losses.
The measure allows eligible farmers to be charged tax on the average of the aggregate farming profits and losses over a five-year period. Tax is charged on the average income of the year in which the election is made and the four tax years immediately preceding that year, thus smoothing their tax liability over a five-year cycle.
Further details on income averaging can be located on Revenue's website, at the following link: www.revenue.ie/en/self-assessment-and-self-employment/farm/farming/income-averaging.aspx.
