by Ariful | Mar 17, 2026 | EU VAT Updates
Ireland’s 2026 Tax Landscape: What’s Changing?
The Irish government has introduced several measures for 2026 aimed at balancing cost-of-living support with long-term economic stability. For business owners, the headlines involve PRSI increases, enhanced R&D credits, and targeted VAT reductions.
1. The PRSI Hike: Prepare Your Payroll
Starting October 1, 2026, both employers and employees will see an increase in Pay Related Social Insurance (PRSI) rates.
- Employee PRSI: Increasing to 4.35% (up from 4.2%).
- Employer PRSI: Increasing to 11.40% (or 9.15% for weekly income of €441 or less).
What this means for you: Your payroll costs will rise in the final quarter of the year. It is essential to update your financial forecasting now to ensure these incremental costs don’t squeeze your margins.
2. Universal Social Charge (USC) Relief
To support middle-income earners, the 2% USC rate band ceiling has been increased to €28,700. This adjustment protects those on minimum wage from falling into higher tax brackets and provides a small but welcome boost to take-home pay for your staff.
3. Boosting Innovation: The 35% R&D Tax Credit
For companies engaged in innovation, 2026 brings excellent news. The Research & Development (R&D) tax credit has increased from 30% to 35%. Additionally, the first-year payment minimum threshold has risen to €87,500.
Action Step: If your business is developing new software, products, or processes, ensure you are tracking every cent of eligible spend. This credit is a powerful tool for improving cash flow in SMEs.
VAT Updates: Sector-Specific Relief and Energy Extensions
VAT remains one of the most complex areas of compliance for cross-border sellers. In 2026, Ireland is introducing several key changes that could directly impact your pricing strategy.
Hospitality and Hairdressing VAT Drop
Effective July 1, 2026, the VAT rate for the hospitality and hairdressing sectors will be reduced from 13.5% to 9%. If your business operates in these niches or provides services to them, this 4.5% reduction is a significant opportunity to either increase margins or offer more competitive pricing to your customers.
Energy and Housing
- Gas and Electricity: The 9% reduced VAT rate on energy bills has been extended until December 31, 2030. This provides long-term certainty for your operational overheads.
- New Apartments: In a move to stimulate the housing market, VAT on new apartment sales is reduced to 9%, aiming to lower construction costs and final purchase prices.
EU-Wide VAT: The Push for Digital Compliance
While Ireland has its specific domestic updates, EU-wide compliance is moving toward a more unified, digital-first approach. If you sell goods or services across European borders, you must stay aware of the evolving “VAT in the Digital Age” (ViDA) initiatives.
ViDA and E-Invoicing
The EU is progressively moving toward mandatory digital reporting and e-invoicing for cross-border transactions. The goal is to reduce the “VAT gap” and simplify the process for businesses.
- Central Electronic System of Payment Information (CESOP): Payment service providers are now reporting cross-border payment data to tax authorities quarterly. This means authorities have more visibility than ever into your sales volumes.
- The Single VAT Registration: Efforts continue to expand the One-Stop Shop (OSS) and Import One-Stop Shop (IOSS) systems, reducing the need for multiple VAT registrations across different member states.
Why this matters: Data consistency is now the golden rule. If your internal sales data doesn’t match what is being reported via CESOP or your VAT filings, it triggers red flags.
Employment and Mobility: SARP and BIK Changes
For businesses bringing international talent into Ireland, two major changes in 2026 require immediate attention:
- SARP Threshold Increase: The minimum income threshold for the Special Assignment Relief Programme (SARP) has increased to €125,000. If you are recruiting executives from abroad, ensure their packages meet this new threshold to qualify for relief.
- Company Car Benefit-in-Kind (BIK): The current €10,000 relief on company cars is being phased out. In 2026, the relief remains at €10,000, then drops to €5,000 in 2027, before being abolished in 2029. It’s time to review your corporate fleet policies and consider electric vehicle (EV) alternatives which still carry preferential rates.
Mastering Compliance: A 2026 Checklist for Success
Compliance shouldn’t be a year-end panic; it should be a daily habit. Here is how you can ensure your business remains on the right side of the Revenue Commissioners and the relevant European authorities:
- Audit Your Record Keeping: Modern tax authorities require granular data. Maintain digital records of every invoice and receipt.
- Review Your VAT Registrations: Are you hitting distance-selling thresholds in Germany, France, or Spain? Ensure you are compliant without the headache.
- Prepare for PRSI Increases: Adjust your Q4 2026 budgets now to accommodate the higher employer contributions starting in October.
- Leverage R&D Credits: If you are an SME, the move to a 35% credit is a massive incentive. Don’t leave money on the table due to poor documentation.
by Ariful | Mar 17, 2026 | EU VAT Updates
Master the Uniform €10,000 VAT Threshold
If you sell goods or digital services to consumers (B2C) across EU borders, the €10,000 annual threshold is your most important metric. Once your total cross-border sales exceed this amount, you are legally required to charge VAT at the rate applicable in your customer’s country.
This rule applies to all digital products, including SaaS, e-books, and online courses. Even if you are a non-EU business, you are not exempt. Failing to track this threshold can lead to back-dated tax bills that could cripple your cash flow.
Actionable Step: Monitor your rolling 12-month sales figures specifically for EU cross-border transactions. If you are approaching the €10,000 mark, you must prepare for VAT registration immediately.
Simplify Filings with the One-Stop-Shop (OSS)
Managing multiple VAT registrations in every EU member state is an administrative nightmare. This is why the One-Stop-Shop (OSS) system is essential for your 2026 strategy. Instead of filing separate returns in Germany, France, and Italy, you can report all your EU-wide B2C sales through a single quarterly return in one member state.
Using the OSS system reduces your administrative costs and simplifies your accounting workflow. However, it is vital to understand the difference between B2B and B2C transactions. For B2B sales, the reverse charge mechanism usually applies, meaning the buyer accounts for the VAT.
Benefit: Using OSS saves you dozens of hours in manual data entry and prevents the need for multiple local tax representatives.
Prepare for the ViDA Initiative and Mandatory E-Invoicing
The VAT in the Digital Age (ViDA) initiative is the biggest shake-up to EU tax law in decades. By 2026, the EU is moving closer to a unified system for real-time digital reporting. The goal is to eliminate the “VAT gap” by making electronic invoicing the default for all cross-border transactions.
What this means for you:
- Digital Reporting: You will eventually need to send transaction data to tax authorities in near real-time.
- Harmonized E-Invoicing: Standardized invoice formats will become mandatory to ensure interoperability across different EU countries.
- Single VAT Registration: The long-term goal of ViDA is to allow businesses to manage all their EU obligations through one single registration, even for stock held in different countries.
Don’t wait for the 2030 full implementation. Start transitioning to e-invoicing software now to ensure your systems are compatible with EU standards.
Understand CESOP: Your Payments Are Now Transparent
Since 2024, the Central Electronic System of Payment Information (CESOP) has been fully operational, and in 2026, the data sharing between banks and tax authorities is more seamless than ever. Payment service providers including PayPal, Stripe, and traditional banks are required to report detailed transaction data for cross-border payments.
If you receive more than 25 cross-border payments per quarter from EU customers, your payment provider is sending that data to the authorities. Tax offices use this data to cross-reference your VAT filings. If your reported sales don’t match your payment data, it will trigger an automatic audit.
Pro Tip: Maintain meticulous digital records. Ensure your internal sales reports match the payouts shown on your payment processor dashboards to avoid red flags.
Mark Your Calendar: 2026 VAT Filing Deadlines
Missing a deadline in the EU is an expensive mistake. Under the OSS system, you must file your returns and pay the VAT owed within 20 days of the end of each quarter. Even if you had zero sales during a quarter, you must file a “Nil declaration.”
Here is your 2026 compliance calendar:
- Q1 (Ends March 31): Filing and payment deadline is 20 April 2026.
- Q2 (Ends June 30): Filing and payment deadline is 20 July 2026.
- Q3 (Ends September 30): Filing and payment deadline is 20 October 2026.
- Q4 (Ends December 31): Filing and payment deadline is 20 January 2027.
Register for services early to ensure your data is processed and filed well before these dates. Late filings often result in immediate interest charges and potential penalties.
Corporate Tax Simplification: The 2026 Tax Omnibus
The European Commission is set to advance a Tax Omnibus directive in the second quarter of 2026. This initiative aims to simplify corporate tax rules and reduce the compliance burden for businesses operating in multiple member states.
Key areas of focus include:
- BEFIT: A proposal for a common EU corporate tax base to streamline how profits are calculated.
- Anti-Tax Avoidance: Stricter rules but with more transparent dispute resolution mechanisms.
- Interest and Royalties: Clarified rules to prevent double taxation on cross-border payments.
This simplification is good news for growing SMEs, but it requires you to stay informed on how your corporate structure may need to adapt.
Your 2026 Compliance Checklist
To ensure your business remains compliant and profitable this year, follow this structured checklist:
- Audit Your Sales: Confirm if you have crossed the €10,000 threshold for EU B2C sales.
- Review Your OSS Registration: Ensure all your active sales channels are correctly linked to your OSS account.
- Verify Payment Processors: Confirm that your payment gateways are CESOP-compliant and that your data is accurate.
- Automate VAT Calculations: Use professional tools to apply the correct local VAT rates at checkout.
- Switch to E-Invoicing: Begin using digital invoicing formats that meet EU standards.
- Maintain Records: Keep transaction data for at least 10 years, as required by EU law for digital services.
Frequently Asked Questions
What is the VAT threshold for EU sales in 2026?
The threshold is €10,000 for cross-border B2C sales. Once you exceed this amount in a rolling 12-month period, you must register for VAT and charge the rate applicable in your customer’s country.
by Ariful | Mar 17, 2026 | EU VAT Updates
If you have been keeping an eye on the Australian economic landscape lately, you have likely noticed a significant buzz surrounding the Australian Taxation Office (ATO) and the upcoming 2026 financial year. It is not just idle chatter; the Australian government is preparing to roll out some of the most substantial tax relief measures seen in recent history.
Starting July 1, 2026, over 14 million taxpayers will see a direct shift in their disposable income. Whether you are a local professional, a digital entrepreneur, or an international business owner operating within the Australian market, these updates will fundamentally change your financial planning and compliance requirements. At Sterlinx Global Ltd, we believe that understanding these shifts early is the key to maintaining a healthy bottom line.
The Landmark Shift: New Tax Rates and Brackets
The headline news for 2026 is the reduction in personal income tax rates. The government has identified that the “middle-income” bracket needs more breathing room to combat the rising cost of living.
The core change focuses on the income bracket between $18,201 and $45,000. Currently set at 16%, this rate is scheduled to drop to 15% on July 1, 2026. But the relief doesn’t stop there. Looking ahead to July 2027, the rate is projected to fall further to 14%.
What This Means for Your Annual Income
While a 1% or 2% drop might seem minor on paper, the cumulative effect is what matters. For individuals earning within this bracket, you can expect an extra $268 in annual income for the 2026–27 financial year. By 2027–28, that benefit doubles to $536.
When we look at the broader picture, combining these new updates with the Stage 3 tax cuts already in motion, the average Australian taxpayer is set to be roughly $2,229 better off in 2026–27. That is approximately $50 per week back into your pocket.
Expanding the Medicare Levy Thresholds
It is not just about the tax rates; it is about how much of your money is protected before the levies kick in. The 2026 updates include an expansion of the Medicare Levy thresholds. This is specifically designed to protect low-income earners, ensuring that those on the lower end of the wage scale are either exempt from the levy or pay a significantly reduced amount.
By raising these thresholds, the ATO is effectively ensuring that the tax cuts aren’t “eaten up” by other obligations. If you are managing a growing team or looking at your own personal filing, this adjustment ensures that the financial relief remains exactly where it was intended: in your bank account.
Superannuation on Paid Parental Leave: A Game Changer for Families
One of the most praised updates for 2026 is the inclusion of superannuation on government-funded Paid Parental Leave (PPL). Historically, taking time off to care for a newborn has resulted in a “superannuation gap,” particularly affecting women.
From July 1, 2026, the government will pay superannuation on PPL at the same rate as the Superannuation Guarantee. This move is designed to boost the long-term retirement savings of roughly 180,000 families each year. For business owners, this highlights the government’s commitment to gender pay equity and long-term financial security for the workforce.
Maintaining compliance with these new superannuation standards is vital. As your partner in accounting services, Sterlinx Global Ltd ensures that all your employee-related filings and superannuation calculations are handled with precision, so you stay on the right side of the ATO.
The Fine Print: Holiday Homes and Interest Charges
March 2026: Australia Finalizes Public CbC Reporting
The Australian Taxation Office (ATO) has just finalized the instructions for public country-by-country (CbC) reporting. This is a major move toward global tax transparency. Large multinational enterprises operating in Australia must now prepare to disclose detailed tax information in a format aligned with GRI standards, starting for years beginning on or after July 1, 2024. For our international clients with significant Australian footprints, this means your reporting data must be more granular than ever before.
While most of the news is positive, there are stricter rules coming into play that you must be aware of to avoid unexpected penalties. The ATO is tightening the belt on:
- Holiday Home Deductibility: There is an increased focus on ensuring that deductions for holiday homes are only claimed for the periods the property is genuinely available for rent. If you use your “rental” for personal use, your claims must be apportioned correctly.
- General Interest Charges (GIC): The ATO is modifying rules regarding the deductibility of general interest charges and shortfall interest charges.
Don’t worry, navigating these nuances is exactly why we are here. Proper cross-border currency and financial management is essential if you hold assets in Australia while living abroad.
Why Compliance is Your Best Financial Strategy
With these changes approaching, the “wait and see” approach is a risky one. The ATO is becoming increasingly sophisticated in its data-matching capabilities. Whether it is tracking rental income or verifying superannuation contributions, the margin for error is shrinking.
At Sterlinx Global Ltd, we operate as a Global Tax Compliance Suite. We are not a traditional advisory firm that gives you a list of tasks to do yourself. Instead, we take the heavy lifting off your shoulders. You provide the data, and we complete the compliance on an ongoing, daily basis. This includes:
- Comprehensive bookkeeping to track every cent.
- Precise tax calculations reflecting the new 2026 rates.
- Seamless GST and income tax filings.
- Full year-end accounts preparation.
By letting us handle the operational execution, you can focus on scaling your business or enjoying the benefits of the new tax relief measures. You can learn more about our commitment to accuracy on our about us page.
Actionable Checklist: Preparing for July 2026
To ensure you are ready for the upcoming shift, follow these essential steps:
- Audit Your Current Tax Bracket: Determine exactly where your income sits to calculate your expected savings.
- Update Your Payroll Systems: Ensure your software (or your accounting partner) is ready to apply the 15% rate for relevant employees from July 1.
- Review Rental Property Records: If you own property in Australia, ensure your “days available for rent” logs are airtight.
- Factor in Superannuation Changes: If you or your staff are planning parental leave, account for the new super contributions in your long-term budget.
- Partner with Experts: Avoid the stress of manual calculations. Talk to an expert at Sterlinx Global to automate your compliance.
Frequently Asked Questions (FAQ)
What is the main tax change in Australia for 2026?
The primary change is a reduction in the personal income tax rate from 16% to 15% for individuals earning between $18,201 and $45,000, effective July 1, 2026.
by Ariful | Mar 17, 2026 | EU VAT Updates
Master the Irish Income Tax Landscape
Ireland remains one of the most attractive hubs for business, but its progressive tax system requires careful planning. For 2026, the standard rate remains at 20%, with the higher rate at 40%. However, the thresholds have evolved.
Know Your Thresholds
Understanding where your income falls is the first step to managing your liabilities. For 2026, the standard rate bands are structured as follows:
- Single Individuals: The first €44,000 is taxed at 20%.
- Single Parents: The first €48,000 is taxed at 20%.
- Married/Civil Partners (One Earner): The first €53,000 is taxed at 20%.
- Married/Civil Partners (Two Earners): €53,000 plus up to €35,000 of the lower earner’s income.
Any income above these thresholds is subject to the 40% higher rate. Knowing these numbers helps you project your net take-home pay and business reinvestment capacity.
Use Tax Credits as Your Compliance Shield
Tax credits are your best friend because they directly reduce the amount of tax you owe, rather than just reducing your taxable income. For 2026, the foundation credits are robust:
- Personal Tax Credit: €2,000 for single individuals (€4,000 for joint filers).
- Employee Tax Credit: €2,000 for those on standard employment contracts.
- Rent Tax Credit: A significant €1,000 for single persons or €2,000 for couples in private rentals. Note that you must manually claim this through your tax return.
By combining the Personal and Employee credits, a single employee effectively shields their first €20,000 of income from tax. This is a massive win for early-stage founders and employees alike.
Ireland’s 2026 VAT and Business Updates
For businesses operating in Ireland, 2026 brings specific changes to VAT rates that could impact your pricing strategy. The Irish government has adjusted rates to balance economic growth with consumer support.
Crucial VAT Rate Changes
As of 2026, keep an eye on these specific sectors:
- Energy Costs: The 9% reduced VAT rate on gas and electricity has been extended through December 31, 2030, providing long-term certainty for energy-intensive businesses.
- Service Sector: From July 1, 2026, a 9% VAT rate applies to food, catering, hairdressing, and apartment sales. If you operate in these niches, ensure your accounting software is updated to reflect these changes mid-year to avoid under-collection.
Boosting Innovation with R&D Credits
If your business is involved in innovation, the Research and Development (R&D) Tax Credit has increased to 35% for 2026. This is a powerful incentive for tech startups and digital brands developing proprietary software or products. This credit can significantly offset your corporation tax liability or even result in a payable credit if you are in a loss-making phase.
Expanding into the EU: The VAT Challenge
For cross-border sellers, Ireland is often the gateway to the broader European Union. However, once you start selling to customers in Germany, France, or Spain, the complexity increases.
Navigating EU VAT Registration
Key jurisdictions for VAT registration include:
- Germany (DE)
- France (FR)
- Italy (IT)
- Spain (ES)
- Netherlands (NL)
If you are using fulfillment centers in these countries (such as Amazon FBA), you likely have an immediate requirement for local VAT registration. Failure to register can lead to account freezes and heavy penalties.
The One-Stop Shop (OSS) Advantage
To simplify EU-wide sales, the OSS scheme allows you to report VAT on B2C sales across all EU member states through a single electronic portal. This prevents the need for 27 individual registrations unless you are holding physical stock in those countries.
Handling Foreign Income and Non-Dom Status
If you are a foreign director moving to Ireland to run your business, your “domicile” status is critical.
The Remittance Basis of Taxation
Ireland offers a favorable “remittance basis” for residents who are not domiciled in Ireland.
- Residents & Domiciled: You are taxed on your worldwide income.
- Residents but Non-Domiciled: You pay tax on Irish income and foreign employment income for duties performed in Ireland. However, other foreign income (like US savings interest or dividends) is only taxed when you “remit” (bring) it into Ireland.
This is a complex area where data accuracy is paramount. Whether you are managing cross-border currency or dividends from a US brokerage, keeping clean records is the only way to avoid a surprise bill from Revenue.
Your 2026 Compliance Checklist
Don’t let deadlines sneak up on you. Follow this checklist to stay organized:
- Update Payroll Systems: Ensure your 2026 tax bands and USC rates are correctly applied to avoid employee overpayment or underpayment.
- Claim Your Credits: Manually verify that you have claimed the Rent Tax Credit and any applicable flat-rate expenses.
- Review VAT Thresholds: If your turnover in Ireland exceeds €80,000 for goods or €37,500 for services, register for VAT immediately.
- Monitor EU Stock: If you move inventory into a new EU country, trigger your VAT registration before the first sale occurs.
- Prepare for USC & PRSI: Remember that the Universal Social Charge (USC) and Pay-Related Social Insurance (PRSI) can push effective marginal rates up to 52% for high earners. Budget accordingly.
Why Compliance is a Team Sport
Navigating the tax landscape in 2026 requires more than just a basic understanding of numbers; it demands a strategic approach to compliance. Whether you are an e-commerce entrepreneur scaling across Europe or a foreign director setting up shop in Dublin, staying ahead of the latest updates from the Irish Revenue and European tax authorities is vital for your bottom line. By transforming your data into seamless filings and maintaining accurate records, you can ensure your business remains compliant while fueling growth across multiple jurisdictions.
by Ariful | Mar 17, 2026 | EU VAT Updates
The OECD “Side-by-Side” Agreement: A New Era of Stability
The biggest headline of early 2026 is the breakthrough “Side-by-Side” agreement. For years, there was tension between the OECD’s 15% global minimum tax (Pillar Two) and the United States’ existing tax framework. In January 2026, a consensus was finally reached, allowing both systems to coexist.
This is a massive win for Irish-based entities and multinational e-commerce brands. It removes the threat of “double-top-up” taxes and provides the legal certainty businesses have been craving since the 2021 global tax reform talks began. Finance Minister Simon Harris has noted that this agreement acknowledges the robustness of both systems, meaning your cross-border operations can finally breathe a sigh of relief.
What this means for you:
- Reduced Risk: The threat of unilateral tax hits from different jurisdictions is fading.
- Predictable Costs: You can now forecast your 15% effective tax rate with greater accuracy.
- Simplified Planning: If you are scaling a global brand, the alignment between the US and EU systems makes cross-border currency and finance management much more straightforward.
Ireland’s Budget 2026: Incentives for Growth
While the global minimum tax sets a floor, Ireland’s Budget 2026 has introduced several measures designed to keep the country competitive for scaling SMEs and digital businesses.
1. Expanded Participation Exemption
Ireland has made it easier for holding companies to thrive. The residency requirement for foreign dividends from EU/EEA subsidiaries has been slashed from five years to just three. If you are using an Irish entity to manage your European expansion, you can now repatriate profits more efficiently.
2. Tax Relief Extensions (SARP and FED)
To attract and retain top-tier talent, the Special Assignee Relief Programme (SARP) and the Foreign Earnings Deduction (FED) have been extended to 2030.
- SARP: The qualifying income threshold is now €125,000, helping you bring in the specialized experts needed for high-growth e-commerce operations.
- FED: Relief limits have increased to €50,000, benefiting those who are actively developing markets outside of Ireland.
3. VAT and Housing Measures
While primarily aimed at local supply, the VAT reduction on apartments, from 13.5% down to 9% until December 2030, is a sign of the government’s commitment to stabilizing the cost of living. For business owners, this indirectly supports a more stable labor market and reduced overhead pressures in the long run.
DAC8 and DAC9: The New Rules of Transparency
Compliance is no longer just about filing your numbers; it’s about the automatic exchange of data. As of January 1, 2026, the Finance Act 2025 has fully implemented EU Directives DAC8 and DAC9.
These directives are designed to close the gap on digital assets and the global minimum tax. DAC8 focuses on the automatic exchange of information regarding crypto-assets, while DAC9 facilitates the exchange of “GloBE” (Global Anti-Base Erosion) information.
This is why an execution-led model is essential. While you provide the transaction data, experts can manage the heavy lifting of these complex filings to ensure you remain compliant with the latest EU-wide transparency standards.
Ireland’s EU Presidency: Leading the Charge on Simplification
Throughout 2026, Ireland holds the EU Presidency. This is a critical window for business owners because the Irish agenda is focused squarely on tax simplification and competitiveness.
The Irish government is pushing for amendments to the Anti-Tax Avoidance Directive (ATAD) to reduce the administrative burden on businesses. For a fast-growing SME, “simplification” means fewer hours spent on paperwork and more hours spent on strategy. These developments should be monitored closely to ensure you benefit from any reduced filing requirements.
How to Stay Ahead: A 2026 Compliance Checklist
With these changes in motion, your accounting strategy cannot remain static. Use this checklist to ensure your business is ready for the new Ireland-EU tax reality:
- Review Subsidiary Structures: If you have EU/EEA subsidiaries, check if you now qualify for the 3-year participation exemption for dividends.
- Audit Your Data Streams: Ensure your digital sales data is “DAC8 ready.” Authorities are now exchanging crypto and digital asset data automatically.
- Evaluate Talent Costs: If you are moving key staff to or from Ireland, look into the updated SARP and FED limits to maximize tax efficiency.
- Monitor VAT Thresholds: As Ireland pushes for EU-wide simplification, keep an eye on VAT registration thresholds for different member states.
- Partner for Execution: Don’t let compliance slow your growth. Move to a model where your daily bookkeeping and tax calculations are handled by experts.
Why Compliance Execution is the Key to Scaling
Tax updates present opportunities to refine your operations. The transition to the 15% global minimum tax and the implementation of DAC8/9 require precision.
A comprehensive compliance approach delivers the end-to-end execution that modern businesses need. From VAT registrations across the EU to full-suite accounting in Ireland, the UK, the USA, Canada, and Australia, proper handling of filings allows you to focus on growth.
The 2026 tax landscape is complex, but it is also full of incentives for those who are organized. Stay compliant, stay informed, and make 2026 your most profitable year yet.
FAQ: 2026 Ireland and EU Tax Updates
Q: What is the new global minimum tax rate for 2026?
A: Following the OECD “Side-by-Side” agreement, the global minimum tax rate is set at 15% for large multinational enterprises. This rate is now aligned with the US tax system to avoid double taxation.
Q: How has the dividend exemption changed in Ireland’s Budget 2026?
A: The participation exemption for foreign dividends from EU/EEA subsidiaries now only requires a 3-year residency period, down from the previous 5-year requirement.
Q: What are DAC8 and DAC9?
A: DAC8 and DAC9 are EU Directives implemented as of January 1, 2026. DAC8 focuses on the automatic exchange of information regarding crypto-assets, while DAC9 facilitates the exchange of Global Anti-Base Erosion (GloBE) information for compliance with the global minimum tax framework.
