Written Answers Nos. 355-374
355. Deputy Sean Fleming asked the Tánaiste and Minister for Finance if he will consider extending the 0% VAT rate to include injectable medicines on private prescriptions; the estimated cost to the Exchequer to do so; and if he will make a statement on the matter. [14977/26]
Amharc ar fhreagraAs the Deputy will be aware, the EU VAT Directive, which Irish VAT law must comply, generally holds that all goods and services are liable for VAT at the standard rate. If a good or service is included in a list under Annex III of the Directive an exemption or reduced rate of VAT may be applied.
Under Annex III of the VAT Directive, Member States may apply a reduced rate or zero rate of VAT to the supply of pharmaceutical products used for medical purposes.
On this basis, Ireland applies the zero rate of VAT to the supply of oral medicine for humans and certain non-oral replacement therapies such as hormone and nicotine replacements. In addition, the supply of non-oral contraceptive products is liable to VAT at the reduced rate, currently 13.5%.
In reducing VAT rates on the supply of a good or services, a consideration must be made of the impact on the overall Budgetary framework as they represent a cost to the Exchequer by narrowing the tax base. Any possible VAT changes will considered as part of the normal Budget process.
I am also advised by Revenue that traders are not required to identify the VAT yield generated from the supply of specific goods and services on their VAT returns. Therefore, it is not possible to provide a costing for a proposal to zero-rate injectable medicines on private prescriptions using information from tax returns.
356. Deputy Catherine Callaghan asked the Tánaiste and Minister for Finance the number of companies that were eligible for tax credits arising from research and development for each of the years 2021 to 2025 inclusive; the number of companies that successfully availed of this support; and if he will make a statement on the matter. [13988/26]
Amharc ar fhreagra357. Deputy Catherine Callaghan asked the Tánaiste and Minister for Finance the budget allocation for companies to avail of tax credits under research and development for each of the years 2021 to 2025; the amount paid from that budget at the end of each calendar year; and if he will make a statement on the matter. [13989/26]
Amharc ar fhreagraI propose to take Questions Nos. 356 and 357 together.
The Research and Development (R&D) tax credit provides companies with a tax credit equal to 35 per cent of the qualifying expenditure incurred on qualifying R&D activities. The R&D tax credit, which was first introduced in 2004, is a broad measure available to companies within the charge to Irish tax who incur expenditure in the carrying on of qualifying R&D activities.
The R&D tax credit is a demand led incentive and therefore the cost will depend on the level of qualifying R&D expenditure that is incurred each year by companies in the carrying on of the R&D activities. Given the cyclical nature of R&D activities this cost will fluctuate each year. In line with other types of tax reliefs it is claimed on a self-assessment basis on the corporation tax return. As with other types of tax reliefs (e.g. capital allowances) there is no formal budget from which the R&D tax credit is drawn down when companies avail of the R&D tax credit.
The Revenue publish detailed statistical data on the R&D tax credit regime as part of the Research & Development (“R&D”) Tax Credit Statistics document, which is available on Revenue’s website, and can be accessed at the following link: www.revenue.ie/en/corporate/documents/statistics/tax-expenditures/r-and-d-tax-credit-statistics.pdf
The number of companies that were eligible for and successfully availed of the R&D tax credit is outlined in the table below for the years 2021 to 2023. Data in respect of 2024 will be published in Q2 2026, while data in relation to 2025 will be published in Q2 2027. The time frame for publishing this data reflects corporation tax return filing deadlines and the time required to prepare data for statistical analysis.
|
Year |
Number of Companies |
|
2021 |
1,629 |
|
2022 |
1,631 |
|
2023 |
1,804 |
358. Deputy Roderic O'Gorman asked the Tánaiste and Minister for Finance if he will provide details on whether the NTMA holds any investments in security/weapons manufacturers companies (details supplied), highlighting the current amounts held and when purchases were made; and if he will make a statement on the matter. [13995/26]
Amharc ar fhreagraThe National Treasury Management Agency (NTMA) has informed me that the Ireland Strategic Investment Fund's (ISIF) portfolio is constructed within the legislative framework set for it by the Oireachtas.
ISIF operates an exclusion policy which is consistent with its statutory mandate, as amended from time to time. Exclusion is used on a limited basis, reflecting exclusions mandated by legislation (such as the Fossil Fuel Divestment Act 2018 or the Cluster Munitions and Anti-Personnel Mines Act 2008) and, inter alia, exclusions on a non-statutory basis on sustainable investment grounds including Tobacco and Nuclear Weapons.
ISIF publishes details of individual investments in the NTMA’s Annual Report each year. As per the most recent annual report, for year-end December 2024, ISIF held no investments in Elbit, Indra, Lockheed Martin, Raytheon/RTX or Northrop Grumman.
The first year in which ISIF had holdings in Palantir Technologies was 2023 as reported for year-end December 2024, ISIF’s holdings in Palantir Technologies were 13,060 shares, valued at €950,000.
359. Deputy Malcolm Byrne asked the Tánaiste and Minister for Finance the total number of buildings leased by his/her Department, or bodies or agencies under its aegis, during 2025; the total cumulative sum paid under these leases; and if he will make a statement on the matter. [14019/26]
Amharc ar fhreagraI wish to advise the Deputy that my Department is provided with accommodation by the OPW and does not have a requirement to rent properties.
The following information has been provided by the Bodies under the Aegis of the Department.
Credit Union Advisory Committee (CUAC)
CUAC are an advisory committee to the Minister set out in the Credit Union Act 1997. CUAC generally meet once a month in the Department’s offices. There are no rental costs for CUAC.
Credit Union Restructuring Board (ReBo)
The Credit Union Restructuring Board (ReBo)has been operationally wound down since July 2017 and the ReBo Dissolution Act 2020 is awaiting commencement. There have been no rental costs for ReBo since 2017.
The Office of the Comptroller and Auditor General (OCAG)
The Office of the Comptroller and Auditor General is provided with accommodation by the Office of Public Works and does not directly pay for this accommodation.
Central Bank of Ireland (CBI)
|
- |
2025 |
|
No. of Buildings Leased |
A portion of an office in one building |
|
Total Cumulative Sum Paid |
€20,325 |
Financial Services and Pensions Ombudsman (FSPO)
|
- |
2025 |
|
No. of Buildings Leased |
2 |
|
Total Cumulative Sum Paid |
€534,233 |
Irish Financial Services Appeals Tribunal (IFSAT)
|
- |
2025 |
|
No. of Buildings Leased |
Office suite in a building. (12.5% of a building) |
|
Total Cumulative Sum Paid |
€25,000 |
Irish Fiscal Advisory Council (IFAC)
The Irish Fiscal Advisory Council offices are located in the Economic & Social Research Institute (ESRI) building. The Fiscal Council has a shared service agreement (SSA) in place with the ESRI. Under this agreement, the ESRI provides office accommodation and building services on a pro rata basis and support services relating primarily to accounts, IT, and other corporate services. The proportion of the SSA in respect of office accommodation for 2025 is outlined in the table below:-
Office Rental Costs per Annum (€’s)
|
- |
2025 |
|
No. of Buildings Leased |
Portion of building leased Fiscal Council's office accommodation occupies 1,082 sq ft within the ESRI building (25,900 sq. ft.) |
|
Total Cumulative Sum Paid |
€69,902.13 |
National Treasury Management Agency (NTMA), National Asset Management Agency(NAMA), Strategic Banking Corporation Ireland (SBCI), and Home Building Finance Ireland (HBFI)
|
- |
2025 |
|
No. of Buildings Leased |
1 |
|
Total Cumulative Sum Paid |
€6.96m |
The table above includes rental costs incurred by the NTMA as well as the cost of rental space occupied by NAMA, SBCI and HBFI in respect of one building leased.
Rental costs paid in respect of a sublet to EIB on Dublin Landings from 2019 are excluded from the figure.
Office of the Revenue Commissioners
All Revenue buildings are provided by the OPW.
Tax Appeals Commission (TAC)
The Tax Appeals Commission (TAC) is located in an office building which is leased by the Office of Public Works on its behalf. The TAC is not party to any leasehold agreements.
The following bodies provided a nil response as they do not hold any leases:
- Irish Bank Resolution Corporation (IBRC)
- Investor Compensation Company DAC (ICCL)
- Credit Review Office (CRO)
- Disabled Drivers Medical Board of Appeal (DDMBA)
360. Deputy Ged Nash asked the Tánaiste and Minister for Finance the estimated annual shortfall to the Exchequer, if principal private residences of the deceased were made exempt from the payment by beneficiaries of an estate from capital acquisitions tax; and if he will make a statement on the matter. [14044/26]
Amharc ar fhreagraI am advised by Revenue that they cannot estimate a cost for this policy proposal as principal private residences are not separately identifiable on the CAT return form. However, the Deputy may wish to note that information in respect of the Dwelling House Exemption, a CAT relief subject to specific conditions, can be found in the Cost of Tax Expenditures publication, which is available on the Revenue website: www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/cost/index.aspx
361. Deputy Ged Nash asked the Tánaiste and Minister for Finance the estimated annual shortfall to the Exchequer, if Class B beneficiaries had the same exemption thresholds applied to them as Class A beneficiaries; and if he will make a statement on the matter. [14045/26]
Amharc ar fhreagraI am advised by Revenue that the cost of uplifting the Group B threshold of €40,000 to the Group A threshold of €400,000 is estimated to be €335 million. This estimate is consistent with policy costings provided in Revenue’s Post Budget 2026 Ready Reckoner, available on the Revenue website at: www.revenue.ie/en/corporate/information-about-revenue/statistics/ready-reckoner/index.aspx
362. Deputy Pearse Doherty asked the Tánaiste and Minister for Finance to provide an exhaustive list of flood related compensation, paid from his Department's vote allocations over the past ten years; and if he will make a statement on the matter. [14100/26]
Amharc ar fhreagraI wish to inform the Deputy that my Department has not paid any flood related compensation over the past ten years.
363. Deputy Sean Fleming asked the Tánaiste and Minister for Finance if he will respond to correspondence (details supplied; and if he will make a statement on the matter. [14166/26]
Amharc ar fhreagra376. Deputy Michael Murphy asked the Tánaiste and Minister for Finance whether his Department is reviewing the taxation treatment of exchange-traded funds and investment funds, including the eight-year deemed disposal rule and the current exit tax rate; whether consideration is being given to abolishing or reforming deemed disposal, aligning the exit tax rate with the 33% capital gains tax (CGT) rate, permitting the offsetting of losses in a manner consistent with CGT treatment, or introducing a tax-efficient retail savings or investment wrapper; and if he will make a statement on the matter. [14492/26]
Amharc ar fhreagraI propose to take Questions Nos. 363 and 376 together.
I am committed to supporting and encouraging retail investment.
The EU Savings and Investments Union is clear in its goal to make it easier, safer and cheaper for people to invest, giving citizens a better return and helping to fund businesses so that they can continue to grow. The Government supports these goals and recognises the importance of encouraging retail investment in Ireland.
As you may be aware, as a first step Budget 2026 included a reduction in the taxation rate that applies to Irish and equivalent offshore funds, and Irish and certain foreign life assurance products, from 41% to 38%, which applies to investments in ETFs that are taxed under these regimes.
I remain very conscious of the concern of retail investors, and work is continuing on the development of the roadmap on the taxation of retail investment announced in Budget 2026, which will be published soon. The roadmap will set out an approach to simplify and adapt the tax framework to further support retail investment, while retaining necessary and important anti-avoidance protections in a proportionate manner.
The work underway on the roadmap includes consideration of the recommendations of the Funds Sector 2030 Report, including the issue of deemed disposal as well as the European Commission’s recommendation for Member States to introduce Savings and Investment Accounts.
364. Deputy Naoise Ó Cearúil asked the Tánaiste and Minister for Finance the number of firms that availed of the research and development tax credit in 2025, by firm size; and if he will make a statement on the matter. [14176/26]
Amharc ar fhreagra365. Deputy Naoise Ó Cearúil asked the Tánaiste and Minister for Finance the measures being taken to increase SME participation in the research and development tax credit, in view of recent analysis of uptake patterns; and if he will make a statement on the matter. [14177/26]
Amharc ar fhreagra366. Deputy Naoise Ó Cearúil asked the Tánaiste and Minister for Finance the regional distribution of research and development tax credit claims in 2025, including the number of claims from the Mid-East region; and if he will make a statement on the matter. [14178/26]
Amharc ar fhreagraI propose to take Questions Nos. 364 to 366, inclusive, together.
The Research and Development (R&D) tax credit provides companies with a tax credit equal to 35 per cent of the qualifying expenditure incurred on qualifying R&D activities. The R&D tax credit, which was first introduced in 2004, is a broad measure available to companies within the charge to Irish tax who incur expenditure in the carrying on of qualifying R&D activities.
In relation to the Deputy’s query regarding the number of firms that availed of the R&D tax credit in 2025, it should be noted that this data is not yet available. I am advised by Revenue that statistics in respect of the R&D tax credit for 2024 will be published in Q2 2026, while data in relation to 2025 will be published in Q2 2027. The timeframe for publishing this data reflects corporation tax return filing deadlines and the time required to prepare data for statistical analysis. The latest Revenue Research & Development (‘R&D’) Tax Credit Statistics report, which contains data for the years 2012 to 2023 was published in May 2025 and is available on the Revenue’s website at:
www.revenue.ie/en/corporate/documents/statistics/tax-expenditures/r-and-d-tax-credit-statistics.pdf
The report includes analysis of claimant companies by company size, based on employee numbers as set out in Table 7 and by reference to the Revenue Division that has responsibility for the company’s tax affairs as set out in Table 8.
I am advised by Revenue that data on the regional distribution of claimants of the R&D tax credit is not currently collated and validated, therefore the statistical breakdown requested by the Deputy is not available.
I am mindful of the need to encourage more SME companies to engage with the R&D tax credit and to ensure that the regime remains competitive when compared against other jurisdictions.
The restructuring of the credit in 2022 to align with newly agreed international definitions of ‘Qualified Refundable Tax Credits’ introduced a new fixed three-year payment structure and removed caps which had previously applied on the repayable element of the credit. This has accelerated the benefit of the R&D tax credit for many claimant companies, including small and start-up companies and those engaged in smaller R&D projects.
In addition, a new first-year payment threshold was introduced, with claims for R&D tax credit of up to that amount being payable in full in the first year of claim rather than spread over three years. The threshold was introduced at €25,000 in Finance Act 2022 and has been subsequently increased, now standing at €87,500. This provides further cash-flow support by accelerating payment of the credit for smaller R&D projects.
The R&D data for 2023 shows an increase in the number of companies claiming the R&D tax credit and data suggests that this was mainly due to smaller claimant companies engaging with the regime.
The Deputy may also be aware of the recent publication of the Research and Development Tax Credit and Innovation Compass by my Department. The Compass sets out a pathway for further policy considerations for the R&D regime and on supports for innovation, demonstrating the Government's continued focus on supporting productive and innovative businesses in the State.
367. Deputy Marie Sherlock asked the Tánaiste and Minister for Finance the revenue raised by the sugar-sweetened drinks tax each year since its introduction to-date in 2026, by the yield, in each band; and if he will make a statement on the matter. [14310/26]
Amharc ar fhreagraI am advised by Revenue that the receipts raised from the Sugar Sweetened Drinks Tax (SSDT), for all years and to-date in 2026, broken down by applicable SSDT rate band, are published on the Revenue website at the following link: www.revenue.ie/en/corporate/information-about-revenue/statistics/excise/ssdt/index.aspx
368. Deputy Danny Healy-Rae asked the Tánaiste and Minister for Finance the amount Ireland is contributing to the €90 billion EU loan to Ukraine; and if he will make a statement on the matter. [14347/26]
Amharc ar fhreagra369. Deputy Danny Healy-Rae asked the Tánaiste and Minister for Finance the duration of the EU loan to Ukraine; when it will be paid back; and if he will make a statement on the matter. [14348/26]
Amharc ar fhreagraI propose to take Questions Nos. 368 and 369 together.
The Council of the EU, in co-decision with the European Parliament, will today (24 February) seek agreement on a loan of €90 billion for Ukraine to be disbursed in the years 2026 and 2027. The loan is proposed via the enhanced cooperation mechanism involving 24 European Union Member States.
The European Council Conclusions of 18 December, and the EU regulations which are planned to be decided on today (24 February), state that the loan would be repaid by Ukraine only once reparations are received from Russia. Until then, the Russian Central Bank assets are to remain immobilised, and the EU reserves its right to make use of them to repay the loan.
The Ukraine Support Loan, if agreed, will be funded by the European Commission borrowing on capital markets backed by EU budget headroom. The call on the EU budget would only emerge if the loan is not repaid by Ukraine, as outlined above. This would feed through to Member States in their EU budget contributions at that point.
The European Commission’s borrowing strategy used for the Ukraine Support Loan will determine when repayments of the loan arise, and when the final repayment will take place. Typically, it issues bills and bonds with maturities varying from 1-30 years, meaning repayments are disbursed across a number of years. More information on the Commission’s activity on capital markets can be found on its website here: commission.europa.eu/strategy-and-policy/eu-budget/eu-borrower-investor-relations/how-eu-issuance-works_en
If repayment of this lending via the EU budget were to arise, the impact on Ireland’s EU budget contribution would depend on Ireland’s share of the budget at that point in time relative to other Member States that are supporting the borrowing, the amount of the loan falling due for repayment at that point in time, and the applicable interest costs. As mentioned above, the Commission ensures a range of maturities for borrowing operations, so the loan would not require repayment in full at one point in time.
As such, there is a contingent liability for the EU and Ireland from this borrowing. However, the factors of Ireland’s share, whether and when amounts will fall due to the EU budget, and the interest costs, are unknown at this point, meaning no accurate estimate of likely costs for Ireland can be provided. Ireland’s share of the overall EU budget varies between years based on a number of factors. For reference, Ireland’s share of the 2025 EU budget was 2.2%.
In addition, the debt service costs, which are proposed to be paid by the EU Budget, will depend on variables such as interest rates and market conditions, and also on Ireland’s proportion of the EU Budget which varies across years. These will be covered in the EU budget in 2027 and subsequent years.
Officials are monitoring these contingent liabilities, alongside the other financial obligations and contingent liabilities arising from the EU budget, to ensure accurate forecasting and predictability of Ireland’s contributions. Safeguards exist to mitigate against large, unexpected calls from Ireland for EU Budget contributions. Under the Own Resources Decision, the maximum that can be called from all Member States to contribute to the EU Budget in a given year is 1.4% of EU GNI. This places a restriction on how much Ireland can be required to pay into the EU Budget in a given year, which protects our domestic budget from a significant shock.
370. Deputy Michael Collins asked the Tánaiste and Minister for Finance if he will assess the clear regional disparity created by the use of open-market valuations in determining eligibility for the help-to-buy scheme (details supplied). [14349/26]
Amharc ar fhreagra371. Deputy Michael Collins asked the Tánaiste and Minister for Finance the rationale for using a theoretical sale price as the determining valuation for a self-build in areas such as the Mizen Peninsula (details supplied); and if alternative valuation methodologies have been considered. [14350/26]
Amharc ar fhreagra372. Deputy Michael Collins asked the Tánaiste and Minister for Finance if he will consider adopting the same build-cost assessment model already used by lending institutions when evaluating self-build mortgages, in order that applicants in high-valuation areas such as Schull are assessed on actual construction costs rather than inflated market values for help-to-buy eligibility. [14351/26]
Amharc ar fhreagraI propose to take Questions Nos. 370 to 372, inclusive, together.
The Help to Buy (HTB) incentive, is a tax-based scheme to assist first-time purchasers with the deposit they need to buy or build a new house or apartment. It also aims to encourage additional supply of new houses by supporting demand.
HTB provides a refund of Income Tax and Deposit Interest Retention Tax (DIRT) paid in Ireland over the previous four years, subject to limits outlined in the legislation.
Based on the latest available data (30 November 2025), the scheme has supported over 61,000 individuals or couples to buy or build their own home.
The level of support available to first time buyers under the HTB scheme, is whichever is the lesser of:
€30,000; or
10 per cent of the purchase price of the new property; or,
the amount of Income Tax and DIRT paid in the four years before application for the relief.
Details of the scheme HTB scheme are set out in section 477C of the Taxes Consolidation Act 1997 (TCA). It states that in order to be eligible to make a HTB claim, an applicant must have either:
entered into a contract with a qualifying contractor for the purchase of a qualifying residence, that is not a self-build qualifying residence, or
drawn down the first tranche of a qualifying loan in respect of a self-build qualifying residence.
A condition of the HTB scheme is that the “purchase value/approved value" of a property must not exceed €500,000. Section 477C(1) TCA defines “purchase value” as:
in the case of a qualifying residence, the price paid for the qualifying residence, being a price that is not less than its market value, or
in the case of a self-build qualifying residence, the “approved valuation.”
An “approved valuation”, in relation to a self-build qualifying residence, is defined by legislation as the valuation of the residence as approved by the qualifying lender at the time the qualifying loan is entered into. This valuation is determined by the qualifying lender in accordance with the Central Bank’s macro-prudential rules. These rules stipulate the valuation as being the lower of the market value of the site plus the cost of construction or the lender's projected market valuation of the property upon completion.
As the Deputy will also appreciate, decisions regarding taxation measures are made in the context of the annual Budget and Finance Bill processes, at the appropriate time, having regard to the sound management of the public finances and the impact any proposed changes would have on the wider housing market. However, I would note that to allow for substantively different eligibility criteria in respect of self-build properties vis–a-vis that which applies to all other new build home would raise issues of tax-equity.
373. Deputy Eamon Scanlon asked the Tánaiste and Minister for Finance if he will consider increasing the 20% income tax threshold to €48,000 in recognition of the pressures facing middle-income earners; and if he will make a statement on the matter. [14355/26]
Amharc ar fhreagraThe Programme for Government (PfG) commits to “implementing progressive changes in taxation if the economy remains strong, including indexing credits and bands to prevent an increase in the real burden of Income Tax. While in the event of an economic downturn and unexpected deterioration in the public finance we would postpone changes to Income Tax credits or bands, as we did in Budget 2021”.
Over recent years, the previous Government provided substantial income tax packages to support workers. The income tax measures implement over the period of the last Government are expected to be in line with wage growth (i.e. wages per head of 21.6 per cent). For example, the single standard rate band, which was increased by €8,700 or 24.6 per cent from €35,300 in 2020 to €44,000, with commensurate increases for jointly assessed married couples / civil partnerships and individuals who can avail of the increased band for single parents.
With the substantial personal Income Tax packages over the lifetime of the previous Government, significant progress has been made on increasing the entry point to the higher rate of income tax.
For Budget 2026 the circumstances were different and this Budget was designed to boost our economic resilience and protect jobs in a deeply uncertain international economic environment.
However, this was the first of five Budgets to be delivered by this Government, and the Government remains committed to, and will stand by, the Programme for Government commitment to make progressive changes to income tax, if the economy remains strong.
374. Deputy Marie Sherlock asked the Tánaiste and Minister for Finance to provide a list of all State agencies within his Department that allocate programme and project funding to section 39, section 56 and section 10 organisations; and if he will make a statement on the matter. [14390/26]
Amharc ar fhreagraI wish to advise the Deputy that none of the State Agencies under the remit of the Department of Finance allocate programme or project funding to the organisations outlined.
In respect of the Strategic Banking Corporation Ireland (SBCI), I am advised that neither the SBCI nor the on-lenders ask the Final Recipients if they are (i) Section 39, (ii) Section 56 or (iii) Section 10 organisations. Therefore, within the lending process, it is not possible to identify the Final Recipients as organisations under the above-mentioned Sections.
