Tánaiste and Minister for Finance Simon Harris presented Budget 2027 to Dáil Éireann on 6 October 2026. For Irish limited companies, the changes that matter most are a higher employer PRSI threshold, a 79 cent rise in the minimum wage, better R&D tax credit cash flow, simpler preliminary taxAn advance payment of corporation tax made before the end of a company's accounting period. rules and a phased end to temporary fuel excise cuts.

Most tax measures need the Finance Bill before they become law, so detail and start dates can still change. Here is what was announced, what it means for your company's cash flow and borrowing, and what to do now.

What changed for employers?

  • Employer PRSI: the weekly threshold for the lower rate of employer PRSI rises from €552 to €600 for 2027. The Minister said this offsets the minimum wage increase and estimated a saving of €650 to €700 a year for each employee below the new threshold.
  • Minimum wage: the national minimum wage rises by 79 cent to €14.94 an hour for workers aged 20 and over from 1 January 2027. It takes effect when the Minister signs the order.
  • Payroll reporting: from January 2027, employers can choose to make Enhanced Reporting Requirements returns to Revenue in real time or monthly.

Illustrative example: a company with 20 staff on the minimum wage, each working 39 hours a week, would see its basic wage bill rise by about €30.81 per employee per week. That is roughly €32,000 a year across the team, before employer PRSI and pension costs.

What changed for company tax and R&D?

  • R&D tax creditA corporation tax credit for companies carrying out qualifying research and development in Ireland.: the first-year payment threshold rises from €87,500 to €105,000. Limits for R&D subcontracted to universities and third parties rise from 15% to 20% and from €100,000 to €200,000. A new enhancement for qualifying R&D wage costs is planned, with detail to follow.
  • Preliminary tax: the Minister announced changes to reduce uncertainty and paperwork, including a higher threshold for 'small company' status (now a prior-year corporation taxThe tax Irish-resident companies pay on their profits. liability of €200,000 or less; Budget 2027 proposes raising this to €350,000; check the final Finance Act), and a simplification so the R&D credit is recognised when working out preliminary tax.
  • Start-up companies relief under section 486C: the Finance (No. 2) Bill 2026 proposes extending it to 31 December 2030.
  • Capital Gains Tax: the standard rate falls from 33% to 31%.
  • Knowledge Development Box: extended by five years.

What changed for energy and fuel costs?

Business supports and State-backed finance

The Department of Enterprise, Tourism and Employment (DETE) gets €1.3485 billion for 2027. Its Budget day release said the Growth and Sustainability Loan Scheme would double to €1 billion and run until June 2029, which Ministers formally announced on 12 October 2026. A €15 million scheme for rural pubs is still being designed.

What does Budget 2027 mean for Irish limited companies?

For most companies, Budget 2027 is about the timing of cash flow rather than big rate changes. Wage costs rise in January, so check your overdraft alternatives before a tight month rather than during one. Fuel costs are likely to climb between March and June 2027 as excise is restored. R&D-active companies may get more of their credit paid sooner. Simpler preliminary tax rules could make payments easier to plan, but the exact thresholds and start dates are a matter for the Finance Bill.

Sector effects differ. Hauliers, construction and agri-food companies are most exposed to the fuel excise restoration. Hospitality, retail and other labour-intensive businesses will feel the minimum wage rise most, although the higher PRSI threshold offsets part of it. Companies planning to sell a business or assets may benefit from the lower Capital Gains Tax rate, so take tax advice before agreeing a sale price or timing.

Nothing in the Budget changes the basics of how lenders assess your company. They will still look at recent accounts, bank statements, tax compliance and whether repayments are affordable from cash flow.

What should your company do now?

  1. Update your 2027 cash flow forecast for higher wages from January and higher fuel costs from March.
  2. Ask your accountant how the preliminary tax and R&D changes affect your next payment dates, and check the Finance Bill as it passes through the Oireachtas.
  3. If a tax bill will be hard to meet, compare a Revenue phased payment arrangement with tax and VAT funding. Our guide to Revenue tax debt options explains both.
  4. If you are planning a long-term project, read what the doubled GSLS changes. You apply for GSLSA State-backed SBCI scheme offering loans of €25,000 to €3 million over seven to 10 years through participating lenders, for long-term growth, resilience or climate action projects. directly to a participating lender.
  5. If you claim the R&D credit, see our guide to how the R&D tax credit is paid and funding the wait.

How Welcome Finance can help

Our lender panel can consider working capital loans and funding a tax bill through a general business loan for limited companies. All finance is subject to lender approval, and approval is never guaranteed. Welcome Finance is a commercial finance broker, not a lender, is not regulated by the Central Bank of IrelandIreland's financial regulator and part of the Eurosystem., and arranges business-purpose finance only for companies registered in Ireland (LTD, DACA type of Irish private company under Part 16 of the Companies Act 2014 that keeps an objects clause in its constitution, limiting what it can do, and uses the suffix DAC., PLCA company type under Part 17 of the Companies Act 2014., ULCA company under Part 19 of the Companies Act 2014 whose members have unlimited liability for its debts.).