Annual company levy: a new four-tier scale in 2026

The annual levy payable by companies is set to change from 2026. The Government plans to replace the current two-tier system with a scale comprising four tiers, which will be more closely linked to the company’s financial size.

The reform was approved in the form of a preliminary draft bill in April 2026. At this stage, it is therefore not yet final and must still go through the legislative process.

What do you need to know about this?

The annual contribution is payable by companies subject to corporation tax and is intended to fund the social security scheme for the self-employed.

Currently, two rates apply, determined in particular on the basis of the balance sheet total for the penultimate financial year ended.

The draft now provides for four bands for the year 2026:

The basis for calculation therefore remains the balance sheet total for the penultimate financial year ended. The amounts and thresholds are index-linked.

What will be the impact on companies?

The reform will have a relatively neutral impact on companies falling within the first two brackets.

However, companies with a balance sheet total exceeding €5.1 million would be subject to a higher contribution. Compared with the maximum amount currently applicable, the third and fourth brackets would represent an increase of approximately 50 per cent and 100 per cent respectively.

The draft also provides for an adjustment mechanism. Where balance sheet data is not yet available, a provisional contribution corresponding to the first bracket may be applied, with a subsequent adjustment once the final figures are known.

In practice

Companies with a high balance sheet total should therefore pay close attention to this reform, which could significantly increase their annual contribution.