Paraic Burke, Head of Tax, PwC Ireland: As holder of the EU Council Presidency in the second half of 2026, Ireland should concentrate on a legislative and policy agenda that bolsters Europe’s competitive edge, advances sustainability, and streamlines the regulatory framework. The emphasis must move from high-level statements into practical delivery across industrial transformation, tax simplification, and better, more proportionate regulation.

Ireland should prioritise the simplification of the Anti-Tax Avoidance Directive (ATAD), particularly the Controlled Foreign Company (CFC) and Interest Limitation Rules (ILR), which remain disproportionately complex for SMEs and cross-border corporate groups. In parallel, progressing reforms on the Directive on Administrative Co-operation including enhanced data exchange and reporting standards, would strengthen transparency and enforcement. Together, these measures would improve the functioning of the single market and underscore Ireland’s commitment to practical, business friendly solutions.

Ireland’s Presidency should accelerate implementation of the Net-Zero Industry Act to speed deployment of clean-tech manufacturing across Europe, particularly in batteries, hydrogen and solar. Ireland should also ensure a smooth Carbon Border Adjustment Mechanism rollout by tackling SME compliance challenges, preparing for its extension to additional sectors, and promoting consistent data requirements across regimes – for example, aligning CBAM emissions data with sustainability reporting and with obligations under the EUDR (EU Deforestation Regulation). Following through on the Critical Raw Materials Act will be essential to secure supply chains, with measures such as ambitious recycling targets and strategic stockpiles. Depending on progress under the Cypriot Presidency, the Government may need to work to secure Council agreement on the Energy Taxation Directive to drive industrial decarbonisation and competitiveness across the EU. Finally, tightening the Industrial Emissions Directive for heavy industry, coupled with innovation funding, would help balance environmental ambition with competitiveness.

Mandating administrative burden evaluations for all new legislative initiatives including those under the EU Digital Act and the VAT in the Digital Age (VIDA), would help ensure that measures are proportionate and practical. In turn, these reforms would foster a regulatory landscape that promotes innovation and competitiveness while strengthening trust in EU governance.

Deirdre Barnicle, Partner, McCann FitzGerald: In an increasingly competitive global environment, Ireland should focus on prioritising measures which increase efficiency and create greater certainty for businesses. In particular, in light of the EU Presidency in H2 of 2026, Ireland should focus on the European Council’s stated aim to simplify tax legislation with a view to reducing the reporting burdens for both tax authorities and taxpayers, eliminating outdated and overlapping tax rules, and streamlining the application of tax procedures and reporting requirements.

Simplification proposals in relation to the Directive on Administrative Cooperation (DAC) are underway and are expected to be published in the second quarter of 2026.

Separately, as mentioned above, the OECD Side-by-Side Package will necessitate further guidance on the EU Directive that deals with Pillar Two. To increase certainty for businesses, Ireland should prioritise the drafting of this guidance so that companies’ obligations into the future are not in doubt.

Finally, on the topic of tax and decarbonisation, Ireland should push for greater alignment of taxes and price relief schemes on electricity and natural gas consumption e.g. through the introduction of a common maximum level of surcharges across the EU. While a 2003 EU Directive set harmonised minimum rates of excise duty for all energy products used for heating, transport and electricity, these rules contain many anomalies and require modernisation.

Emilie Sibi, Senior Manager, International Tax, Forvis Mazars: The EU presidency is always an excellent opportunity to put increased attention at the EU level on topics that matter to the country leading for six months. While issues related to the environment and climate change continue to impact all, it seems unlikely that taxation to support a green transition will be championed while Ireland holds the presidency. It is a shame to see a topic so closely linked to the EU’s energy independence and sustainability be relegated, however, in the current international and domestic contexts, it does not seem to be a priority.

The taxation omnibus, which aims to streamline and modernise existing EU frameworks, is planned for discussion in Q2 2026. This will certainly still be on the agenda in the second half of 2026 and represents an opportunity for the Irish government to show its continued focus on improving the EU’s competitiveness and business environment within the bloc by simplifying the taxation system, especially for cross-border transactions. This omnibus also aims to increase transparency and the exchange of information within the EU. Championing this legislation would send the message that Ireland is dedicated to the highest standards of transparency and to the development of efficient exchange of information systems. This, in turn, could help move away from the low tax jurisdiction’s etiquette still associated with the country at times.

This article appeared in the January 2026 edition of the Irish Tax Monitor.