Proposed reforms to rules on interest tax risk undermining Irish competitiveness, Chartered Accountants Ireland (CAI) has warned the Department of Finance. Proposals on the treatment of interest in the tax system would add “unnecessary complexity” should these be adopted, the accountancy body said in response to a consultation. Minister for Finance Simon Harris published a call for feedback in November on a set of proposed “strawman” reforms on how the tax system operated around interest payments and the deductibility of such payments from tax obligations. Instead of obligations being due when interest is paid, it would instead be due when interest in earned. “Under an accruals model, companies could face annual withholding tax obligations on interest they have not paid – a direct cash‑flow hit.

Source: The Irish Times February 02, 2026 10:31 UTC