Accounting and tax
- Group companies include i) entities in Ireland and in EU member states ii) entities in a treaty country and iii) a company quoted and traded on a recognized stock exchange. Group relief applies to subsidiaries at least 75% owned;
- Small companies are exempted from annual financial statements audit if they satisfy 2 out of 3 conditions:
- Turnover of less than €12 million net (or €14.4 million gross);
- A balance sheet total of less than €6 million net (or €7.2 million gross);
- Number of employees is less than 50;
- This small company exemption is not applicable to:
- Parent companies and their subsidiaries;
- Banks and financial institutions and intermediaries;
- Insurance companies;
- Company that files a late annual return;
- Medium companies are exempted from annual financial statements audit if they satisfy 2 out of 3 conditions:
- Turnover of less than €40 million;
- A balance sheet total of less than €20 million;
- Number of employees is less than 250.
- A QIAIF regulated fund used for purchasing property can also assist foreign entrepreneurs to eliminate all Irish taxes, such as the capital gains, stamp duty or withholding tax when transferring rental income overseas.
Legal and compliance
- Ireland is a member of the OECD, it signed the OECD MLI on 7th June, 2017. Furthermore, as a common law jurisdiction, Ireland has a legal system similar to that of UK and US;
- Intellectual property is often the most valuable asset to a company. It is hence important to note the intangible asset should be used for at least 10 years to prevent a clawback of the relief obtained. It comprises:
- Patent, registered design, design right, copyright or invention;
- Trademark, trade name or trade dress;
- Brand or brand name;
- Domain name, service mark or publishing title;
- Authorisations to sell medicines, etc;
- Customer lists, except where acquired as part of transfer of a business as a going concern;
- Certain software;
- Any licence in respect of, and any goodwill attributable to, the above;
- Costs associated with applications for certain legal protection.
- Ireland is a signatory to the European Patent Convention (EPC) and the Patent Cooperation Treaty (PCT). Therefore, our Clients may choose to submit their applications for a patent at the Irish Patents Office; if approved, the patent will be recognized in all 36 member countries of the EPC. Similarly, a PCT application will also be deemed applicable in all EPC countries;
- The Irish company’s directors are responsible for its daily operations and must act in the best interests of the shareholders within the confines of the Companies Act and the common law. An Irish company is required to appoint at least 2 directors;
- R&D means:
- Basic research (experimental or theoretical)
- Work performed with aim of acquiring knowledge, which may or may not be used to develop a practical application in the future;
- Experimentation performed in order to achieve scientific or technical advancement which may be used to produce/improve new/existing material or devices. To secure tax credit, it must be shown the project achieves advancement or resolves current uncertainty.
- Ireland has established a Labour Relations Commission (LRC) and Labour Court to mediate in a fair, efficient and inexpensive manner for resolutions to trade disputes;
- The maximum average work week is 48 hours (including overtime) over a 4-month period, although the general standard working week determined through collective agreements is 39 hours. Overtime rates of pay are all determined through collective agreements; for example, the current registered employment agreement for the construction industry provides for overtime rates of pay of time-and-a-half until midnight Monday to Friday and double time thereafter.
Frequently asked questions
Will my Ireland company have to pay taxes on profits derived from outside Ireland?Yes, Ireland imposes corporate tax on worldwide profits.
When do I need to file my corporate tax returns in Ireland?A company is required to file for tax returns within nine months of the end of its accounting period.
What is the corporate tax rate in Ireland?The corporation tax rate in Ireland is 12.5%.
If I set up a company in Ireland, will it be seen as tax evasion?No, although corporate taxes are low in Ireland, it is completely legal. Big companies like Microsoft have set up their European headquarters in Ireland.
How can I find accountants for my Irish company?Healy Consultants can prepare financial reports, file annual returns and maintain accounting records for Ireland companies.
What are Ireland work permit visa requirements?