Budget 2027: What It Means for Irish Businesses and SMEs

 

Budget 2027: New Opportunities for Irish Businesses

The Irish Government has announced Budget 2027, introducing measures aimed at supporting businesses, encouraging investment, reducing tax pressures and helping employers manage increasing operating costs. The budget includes changes to taxation, investment incentives and employment supports that may benefit companies across Ireland. RTÉ

Key Business Measures

Lower Capital Gains Tax for Small Businesses

The standard Capital Gains Tax rate for qualifying small businesses will reduce from 33% to 31%, helping entrepreneurs reinvest and grow their businesses. RTÉ

Support for Irish Companies

A new €1 billion investment programme through the Ireland Strategic Investment Fund will provide additional support for the growth of Irish businesses and innovation. RTÉ

Corporation Tax Updates

The Government has announced amendments to Ireland's corporation tax framework to maintain Ireland's competitiveness while aligning with international tax requirements. RTÉ

Minimum Wage Increase

The National Minimum Wage will increase to €14.94 per hour. Employers should review payroll systems, employment contracts and staffing budgets to ensure compliance. RTÉ

Employer PRSI Changes

The weekly Employer PRSI threshold will increase from €552 to €600, providing additional support for employers with lower-paid employees. RTÉ

Tax Changes

Budget 2027 also includes several income tax measures designed to increase take-home pay:

• Standard rate tax band increased by €2,500
• USC thresholds adjusted
• Various personal tax credits increased

These measures are intended to leave more disposable income in the hands of employees. RTÉ

Investment in Infrastructure

The Government has committed significant funding towards:

• Public transport
• Housing
• Healthcare
• Digital infrastructure
• Climate initiatives

These investments are expected to support long-term economic growth and create additional business opportunities across Ireland. RTÉ

What Businesses Should Do

Business owners should now:

• Review payroll costs for 2027.
• Update payroll software for the new tax bands and minimum wage.
• Consider available investment incentives.
• Review employment budgets and workforce planning.
• Speak with their accountant or payroll provider before implementing Budget 2027 changes.

How SMEPA Can Help

SMEPA is preparing updates to ensure customers remain compliant with Budget 2027. Planned updates include:

• Updated PAYE and USC calculations
• Revised Employer PRSI thresholds
• National Minimum Wage updates
• Payroll compliance enhancements
• Budget 2027 reporting tools

These updates will help businesses process payroll accurately and remain compliant with the latest Irish Revenue requirements as the new measures come into effect.