Chambers backs tax rate cut for investment funds

Minister for Finance Jack Chambers has endorsed a proposal to reduce the tax rate on certain investment funds from 41% to 33%. The move, suggested by government officials, aims to streamline tax processes and encourage public investment.

Chambers highlighted the potential for increased public involvement in investing with these changes, emphasizing the need to align the tax rate with Capital Gains Tax. The adjustment would require legislative modifications by the next government.

The initiative, known as Funds 2030, seeks to simplify Ireland’s tax system for funds and bring it in line with international standards. It also addresses concerns about the complexity of the current tax regime for the sector.

By harmonizing taxation on Irish-domiciled funds with other investment products, the government hopes to attract more investors and stimulate economic growth in the financial services sector. The recommendations from the review have received positive feedback from stakeholders.

Overall, the proposed tax changes aim to modernize Ireland’s investment landscape and enhance its competitiveness within the EU market.