847. Deputy Noel McCarthy asked the Tánaiste and Minister for Finance if he is considering a review of the current capital gains tax treatment of cryptocurrency investments; whether any measures such as increasing the annual capital gains tax exemption or introducing a reduced rate of exemption for assets held over a longer period are being considered; and if he will make a statement on the matter. [63715/26]

I can inform the Deputy that the characteristics of cryptocurrency are more aligned to those of assets rather than currency. As with any other activity, the treatment of income or gains arising from activities involving cryptocurrency or other crypto-assets will depend on the nature of the activities and the parties involved.

The sale, transfer, or redemption of crypto-assets is most likely to be a disposal for capital gains tax (“CGT”) purposes unless, based on the facts and circumstances, there is a trade of dealing in crypto-assets being carried on.

An individual is chargeable to CGT at the rate of 33% on gains realised on the disposal of chargeable assets, with the first €1,270 of chargeable gains in a tax year being exempt from CGT. If a company disposes of a crypto-asset investment, other than in the course of its trade, it will be liable to corporation tax on the chargeable gain arising on the disposal, with such a gain being determined by reference to CGT legislation. There is no annual exempt amount in the case of a company.

An Irish tax resident person is subject to CGT on their worldwide gains – as such, where an Irish tax resident person disposes of a crypto-asset investment at a gain, the gain falls within the scope of CGT, regardless of where the crypto-asset is located.

A disposal can occur where a person:

• sells or gifts cryptocurrency,

• trades or exchanges cryptocurrency (including the disposal of one cryptocurrency for another cryptocurrency),

• converts cryptocurrency to fiat currency (a currency established by government regulation or law), such as Euro, or

• uses cryptocurrency to obtain goods or services.

Losses on the disposal of crypto-asset investments may be allowed as a deduction against other chargeable gains arising in the same tax year; if such losses exceed the chargeable gains arising in the same year, the excess losses may be carried forward and set off against the next available chargeable gain.

Where, based on the facts and circumstances, an individual or company’s activities in relation to cryptocurrency or other crypto-assets are carried out as part of a trade, any profits or losses arising will be taxable in accordance with normal income tax rules in the case of an individual, and normal corporation tax rules in the case of a company.

Finance Act 2025 transposed two important international standards in crypto assets into Irish Law. Section 891HA of the Taxes Consolidation Act (TCA) 1997, which imported Part 1 of the OECD (2023) International Standard for Automatic Exchange of Information in Tax matters: Crypto Asset Reporting, commonly referred to as the Crypto Asset Reporting Framework (CARF) and Section 891M TCA 1997, which imported the Council Directive (EU) 2023/2226 [DAC8] update to Directive 2011/16/EU on administrative cooperation in the field of taxation (DAC).

Both CARF / DAC8 provide for the reporting of tax information on transactions in crypto-assets in a standardised manner, with a view to automatically exchanging such information.

Both CARF and DAC 8 tackle the non or under reporting of income and gains generated from crypto-assets by providing that Reporting Crypto-Asset Service Providers (RCASPs) must collect, and automatically report, information on crypto-asset users for whom they undertaken certain crypto-asset transactions.

Both CARF and DAC8 also provide for the exchange of crypto-asset information with tax authorities in other Member States or jurisdictions.

The first domestic reporting of crypto-asset data is in respect of the period 1 January 2026 to 31 December 2026 and is required to take place by 31 May 2027. Exchanges with other Member States or jurisdictions will take place after this date.

As with all taxes, CGT is subject to ongoing review. This involves the consideration and assessment of the rate of CGT and the relevant reliefs and exemptions from CGT as part of the annual Budget and Finance Bill process, as well as consideration of CGT in the wider tax policy context.