Ireland

Ireland is one of the longest established low tax jurisdictions within the EU. It holds certain attractions for international businesses, including a 12.5% corporation tax rate for profits from Irish trading.

Ireland has an extensive and growing tax treaty network. This reduces and, in some cases, completely eliminates withholding taxes on in-bound dividends, interest and royalty payments. Double tax relief is available for withholding taxes on such income against an Irish entity's corporation tax liability.

Other notable features of this jurisdiction include:

  • No Controlled Foreign Company rules
  • Exemptions from capital gains tax for the disposal of qualifying participations
  • No incremental Irish tax on dividends from foreign subsidiaries that are paid from income that has been subject to an effective tax rate of 25% or more

Pearse Trust has over two decades' experience of advising international businesses on how best to benefit from this competitive tax regime.

Ireland Key Facts

Formation:
Approx. 5-10 working days

Shelf Companies:
Not available

Authorised Share Capital:
Unlimited and no restriction on currency

Issued Share Capital:
Minimum paid up share capital = €1

Directors:

  • Minimum number of directors = 1
  • With the exception of the LTD type company which is permitted a sole EEA resident director, all Irish companies should have two directors, one of whom, is a resident in a member state of the EEA.

  • At least one director must be resident in a member state of the EEA, save in circumstances where a bond has been entered into by the company or the company has successfully established that it has a real continuous link with the State

  • Corporate directors not permitted

Secretary:

  • Obligatory
  • No restriction on residence or nationality
  • Corporate secretary permitted

Shareholders:

  • Minimum number of shareholders = 1
  • Corporate shareholders permitted

Public Filing:

  • Audited financial statements must be filed within nine months of financial year-end (exemptions available from audit requirement)
  • Annual return must be filed every year

Corporation Tax Rates:

  • 12.5% for trading income with “substance” in Ireland
  • 25% for all other cases.

Corporation Tax Returns:
Must be filed within 8 months and 21 days of financial year-end.

Capital Gains Tax:
Effective rate of 25% applies on capital gains 

Withholding Tax:
Dividends: 20%*
Interest: 20%*
Royalties: 0% or 20%*

Withholding Tax EU/DTA:
Dividends: 0%
Interest: 0%
Royalties: 0%

Withholding Tax Other:
Dividends: 20%
Interest: 20%
Royalties: 0%

Double Tax Treaties:
54 in effect (62 signed)

Irish Corporate Tax

For businesses and individuals with interests in different markets, managing their tax affairs is becoming increasingly complex. Tax authorities worldwide are imposing tighter trading rules and pursuing revenues much more aggressively.

Increasingly, they aim to:

  • Collect taxes on cross-border activities
  • Share information about clients who operate in these markets

Pearse Trust’s team of dedicated tax professionals is well placed to manage such demands. This team has experience of identifying excellent planning opportunities that can lead to enhanced financial performance and increased value for shareholders.

Our growing international network allows us to offer integrated solutions, tailored to clients’ individual requirements.

Irish Company Incorporations

Pearse Trust is the leading company formation specialist in the Irish market.

The main provisions of the legislation which govern the formation of companies in Republic of Ireland are:

  • With the exception of the LTD type company which is permitted a sole EEA resident director, all Irish companies should have two directors, one of whom, is a resident in a member state of the EEA
  • A company’s registered office has to be within the Republic
  • Statutory accounts have to be presented to shareholders within nine months of year end
  • Private companies are required to have their annual accounts audited, but exemptions can apply
  • Irish companies can be dissolved by seeking a voluntary dissolution or through either a creditors’ or members' liquidation.

Irish Corporate Compliance

Compliance is an increasingly important issue for all business which operate in Ireland. The regulations governing compliance have expanded in recent years and company law is being enforced more actively.

The Companies Registration Office (CRO) registers businesses, partnerships, societies and unions. Strict compliance with Irish company law and the CRO’s filing requirements is crucial for international businesses establishing or expanding their operations in Ireland.

As a market leader in company formations in Ireland, Pearse Trust has extensive knowledge and experience of ensuring that clients meet all their compliance obligations.

Irish Process Agent

Where overseas companies and individuals, particularly those in finance related industries or transactions, enter into agreements or undertakings which are governed by Irish legislation, such parties will ordinarily be required to provide an address for service within Ireland.

Pearse Trust, as your appointed agent for service of legal process, can provide you with an address for acceptance of service of notices, proceedings and other related documents, at our central Dublin offices.

Our dedicated team is on hand to receive and accept, on our clients’ behalf, any documentation involving proceedings issued by Irish courts, counterparties or arbitration proceedings.

The following would ordinarily apply where we are engaged to provide such services:

  • Our address would be utilised in the notice provisions of any agreement(s) entered into;
  • You or your appointed advisor would be notified immediately of any documentation / notices received;
  • We can notify you of such notices by your preferred communication medium to include email, facsimile, post, courier or any combinations thereof.

Pearse Trust can offer you a comprehensive and cost effective service as a process, or service agent, which will enable you to comply with your contractual obligations under Irish legislation.

Irish Solutions

Solutions offered by Pearse Trust for Ireland are based on matching client requirements with different types of company structures and other measures designed to maximise wealth.

Solutions may involve the formation of:

  • Companies which attract a 12.5% rate of corporation tax
  • Royalty companies, which can be used for royalty payments generated outside of Ireland
  • Agency companies, suitable for international trading and commission arrangements or for rendering services

Ireland - Related Blog Posts