Budget 2027 introduces several changes that will affect how Irish businesses manage their costs, plan investments and prepare for the year ahead.

While the Budget includes a range of tax measures and financial supports, the real question for business owners is how these changes will affect their day-to-day operations and financial planning.

Here are five key areas Irish businesses should be reviewing ahead of 2027.

1. Employment Costs: Preparing for Higher Wages

From 1 January 2027, the National Minimum Wage will increase from €14.15 to €14.94 per hour, an increase of 79 cent.

For businesses employing staff on or close to the minimum wage, this will increase payroll costs. Employers should also consider the impact on pay structures, overtime and overall staffing budgets.

To help offset some of these costs, the weekly earnings threshold for the lower employer PRSI rate will increase from €552 to €600.

What this means for your business: Review your 2027 payroll forecasts now, taking account of wage increases, employer PRSI and any planned recruitment.

2. Capital Gains Tax: Opportunities for Business Owners

One of the significant tax changes announced in Budget 2027 is the reduction in the standard Capital Gains Tax (CGT) rate from 33% to 31%, effective from 7 October 2026.

This may benefit business owners considering selling assets, restructuring their businesses or planning future investments.

However, different rates and reliefs can apply depending on the transaction. For example, the 33% rate continues to apply to certain development land disposals.

What this means for your business: If you’re considering selling a business or disposing of an asset, reviewing the tax implications in advance could help you make a more informed decision.

3. Investment and R&D: More Support for Business Growth

Budget 2027 includes further enhancements to Ireland’s Research and Development (R&D) Tax Credit, which remains at 35% of qualifying expenditure.

The proposed changes include increasing certain subcontracting limits and raising the first-year payment threshold from €87,500 to €105,000, potentially improving cash flow for qualifying businesses.

Several investment incentives are also being extended, including the Employment Investment Incentive (EII), Start-Up Relief for Entrepreneurs (SURE) and Angel Investor Relief, subject to the relevant legislative and EU requirements.

What this means for your business: Companies planning to invest in innovation, product development or expansion should review which tax reliefs and funding supports may be available.

4. Corporation Tax: Changes to Financial Planning

Budget 2027 also proposes changes to Preliminary Corporation Tax requirements.

These include increasing the small company threshold, based on the previous year’s Corporation Tax liability, from €200,000 to €350,000, alongside changes designed to provide greater flexibility with preliminary tax payments.

For qualifying companies, these measures could make tax payment planning more manageable.

What this means for your business: Review your Corporation Tax forecasts and expected payment dates to ensure sufficient cash is available when liabilities fall due.

5. Financial Planning: Time to Review Your 2027 Budget

Beyond individual tax changes, Budget 2027 highlights the importance of proactive financial planning.

Businesses should consider how higher employment costs, available tax reliefs and planned investments will affect their financial position.

Some practical steps to take now include:

• Updating payroll and operating cost forecasts.

• Reviewing cash flow projections for 2027.

• Identifying potential tax reliefs and investment incentives.

• Assessing planned capital expenditure and funding requirements.

• Reviewing profitability and financial performance against business objectives.

Having accurate financial information and a clear budget will help business owners make informed decisions throughout the year.

Need Assistance with Corporation Tax Planning?

Budget 2027 presents both challenges and opportunities for Irish businesses. Understanding how the changes affect your organisation is an important part of preparing for the year ahead.

At Gallagher Keane, we support businesses with tax planning, financial reporting, cash flow forecasting and strategic financial advice. Our team can help you review your 2027 budget, plan future investments and assess your tax position, giving you the financial clarity to make informed business decisions.

Email: info@gallagherkeane.ie
Phone: +353 1 969 5100