PwC calls for Capital Gains Tax to be reduced to 20%
PwC is calling for the the reform of the Residential Zoned Land Tax (RZLT), to broaden tax policy and to reduce the Capital Gains Tax to 20% from 33%.
The proposals are part of PwC's 2026 Pre-Budget Submission aiming to reset tax policy in a number of key areas to promote Ireland's competitiveness
Tax Leader, PwC Ireland, Paraic Burke, said the need to bolster Ireland's competitive offering has never been more apparent in a period of increasing global instability and heightened international tax competition.
"With increasing geopolitical risks and uncertainties, Ireland must take action to control our own controllables. While there are constraints about what we can do at international levels, domestically, Ireland has full control to determine its destiny on key domestic issues such as housing, decarbonisation and energy security," said Mr Burke.
"Ireland must continue to simplify its tax system, expand incentives and support businesses and individuals in driving sustainable growth. Tax policies and incentives, if wisely chosen, could be critical to addressing Ireland's key infrastructural, housing, climate and other challenges.
"Following endorsement from the EU to utilise targeted tax incentives, the Irish government should not be afraid to use them. Budget 2026 offers Ireland an opportunity to make changes that can help to direct the future course of our country."
PwC's Submission calls for the reduction in the 33% Capital Gains Tax (CGT), one of the highest in Europe, to 20% to promote the transfer of businesses to the Irish business leaders of tomorrow.
It suggests treating the exit of a shareholder from a business as a CGT event rather than being subject to income tax (and higher tax) would be an important step towards achieving this.
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