Peadar Tóibín
Question:242. Deputy Peadar Tóibín asked the Tánaiste and Minister for Finance to outline the measures in place or planned to support businesses in rural communities to remain viable. [50884/26]
View answerTuesday, 7 July 2026
Questions (242)
Written answers
This Government is committed to supporting and enhancing the sustainability of businesses in Ireland including those based in rural areas.
It is important to recognise the positive impact of a low corporate tax rate of 12.5% for businesses in Ireland including SMEs and rural based enterprises.
A range of tax-based enterprise supports are available to businesses and enterprises across the country. These incentives complement more regionally specific direct expenditure measures and schemes overseen by the Department of Enterprise, Tourism and Employment and its agencies.
A number of examples of relevant reliefs include:
• Capital Acquisitions Tax (CAT) Business Relief which provides relief from CAT in respect of gifts or inheritances of business property.
• Capital Gains Tax (CGT) Retirement Relief which is available to individuals disposing of any part of their business or farming assets, with specific provision for disposals to children or favourite nephews or nieces.
• Revised Entrepreneur Relief (RER) which provides a reduced 10 per cent rate CGT to entrepreneurs subject to a lifetime limit.
• Employment Investment Incentive (EII), Start-Up Relief for Entrepreneurs (SURE) and Start-Up Capital Incentive (SCI) which are key supports that help provide SMEs and start-ups with alternative funding sources, by incentivising investment in SME and start-ups.
Budget 2026 contained tax relief measures amounting to over €1 billion in supports to businesses and entrepreneurs, including those businesses in rural areas.
The reduction in the VAT rate on food and catering businesses and for hairdressing services from 13.5 per cent to 9 per cent took effect on 1 July 2026. 99 per cent of businesses operating in these sectors are SMEs, many of which are based in the regional towns and rural communities.
The increase in the Revised Entrepreneur Relief lifetime limit from €1 million to €1.5 million for disposals made from the 1st of January 2026 supports entrepreneurs including those in the small businesses.
As announced in Budget 2026, the Living City Initiative, a tax incentive which offers tax relief for money spent on refurbishing or converting homes and upgrading commercial properties, has been expanded to five regional centres: Athlone, Drogheda, Dundalk, Letterkenny, and Sligo.
A range of direct expenditure supports are also available to businesses, and details can be found online on the National Enterprise Hub.
As the Deputy will be aware, decisions on any potential amendments to current reliefs or the potential introduction of new tax reliefs are usually made in the context of the annual Budget and Finance Bill process and at the appropriate time.