Dáil Éireann Debate, Wednesday - 27 May 2026
54. Deputy Emer Currie asked the Tánaiste and Minister for Finance if he has received a recent report from an organisation (details supplied); and if his Department will assess the reports' recommendations for an accelerated capital allowance to incentivise increased investment in digital transition and AI adoption by Irish SMEs. [40407/26]
Amharc ar fhreagraI understand that the Deputy’s query refers to the 2026 reports published by Digital Business Ireland entitled ‘Taking Digital Commerce in Ireland to the Next Level’ (January 2026) and ‘Making AI Work for Ireland’ (April 2026). As the Deputy notes, these reports recommended the introduction of a targeted accelerated capital allowance to incentivise increased investment in digital transition and AI adoption by Irish SMEs.
In the formulation of policy, my officials undertake detailed research and look at various available sources of information, including reports such as those published by the Digital Business Ireland.
The Deputy will be aware that, as a small open economy, connected to Europe, the US and the wider world, Ireland has been and continues to be committed to a competitive, transparent and stable corporation tax system. The trading profits of companies in Ireland are generally taxed at the standard corporation tax rate of 12.5 per cent, with larger corporate groups potentially in scope of the Pillar Two 15 per cent Minimum Effective Tax Rate.
It is recognised that small businesses are significant drivers of employment and economic activity across the country. In addition to the 12.5 per cent corporation tax rate, the Irish corporation tax system contains a number of broad tax measures designed to support investment and encourage transformations within such businesses that will enable them to be competitive in a dynamic market. Section 486C start-up company relief, the Accelerated Capital Allowances (ACA) scheme for Energy Efficient Equipment (EEE) and the Research and Development (R&D) Tax Credit are some examples of relevant tax measures, and which are not specific to any sector or industry and thus provide valuable support to any company that meets the relevant criteria.
Qualifying R&D activities must also seek to achieve a scientific or technological advancement and involve the resolution of scientific or technological uncertainty, therefore, companies undertaking R&D in A.I., data analytics, digitalisation, and emerging technologies may qualify for the R&D tax credit on those activities.
With regard to companies adopting newly developed digital and/or AI technologies, as the Deputy may be aware, my Department is currently looking at options for potential tax-based supports for innovation, for my consideration in advance of Budget 2027. Further information on this process is set out in the Research & Development Tax Credit and Innovation Compass, published in February this year.
There is also a wide range of non-tax government supports available to companies to assist with a digital transition project and invest in new technologies, some of which have been referenced by Digital Business Ireland. Further information is also available on the National Enterprise Hub at www.neh.gov.ie.
