On July 18, 2017, the Irish government approved the drafting of a Bill on reforming the structure of partnerships with limited liability. This innovation will be an important step in the development of the financial services sector and it will contribute to the growth of the popularity of Ireland as the preferred jurisdiction for the registration of investment funds.
Recently, the Minister of Finance and Public Expenditure and Reforms of Ireland, Pascal Donoho, made a statement regarding the Investment Limited Partnership (Amendment) Bill 2017 (the ILP Bill). The purpose of the bill is to amend the Investment Limited Partnership Act 1994 (Law on Investment Partnerships with Limited Liability) used for Limited Liability Companies (LP) and Limited Partnerships Act 1907 (Law on Partnerships with Limited Liability), which is used for unregulated LP structures .
The amendments proposed by the ILP bill will help in bringing both regulated and unregulated LP in the line with other fund structures, and in the case of regulated LPs, with the standards set forth in the Alternative Investment Fund Managers Directive 2011/61 / EU), as well as other international standards regarding...
Ireland remains the most efficient country in the EU, in which it is possible to pay taxes for businesses, according to the latest PwC / World Bank survey of tax.
The report dealt with 189 economies around the world and take into account that all taxes was paid by companies. He analyzed the bureaucratic and administrative burdens imposed on businesses, when it comes to time spent on compliance, payment and registration of taxes, as well as the amount of tax imposed. Ireland took the 6th place in the world.
PwC and the World Bank found that a typical Irish company spends about a quarter of the total volume of commercial profit in taxes. This figure was 12.4 percent of the income taxes, 12.1 percent of labor taxes and 1.4 percent in other taxes. In addition, the company spends a little more than two weeks, on their tax affairs and makes the payment almost every six weeks.
PwC stressed that the statutory corporate tax rate in Ireland 12.5 percent, very close to the rate of "income tax" 12.4 percent.
In the report explained that within the EU and the European free trade area, company will pay 40.6 percent of its commercial profit in taxes, including income taxes of 12.6 percent,...
Irish Tax Administration updated its local rules on property tax, taking into account the changes made to the Finance (Local Property Tax) (Amendment) Regulations 2015.
Most of the changes in the manual refer to the threshold for the various benefits that are free from the responsibility of payment of local property tax. This was the result of a three-year extension to the first period of evaluation of the situation. The period of assessment is currently ranges from 1 May 2013 to 31 October 2019, when satisfied the relevant eligibility conditions TND exceptions will now be available for that extended period.
Other changes related to the simplifications, they are available for properties occupied by individuals with disabilities. The main change relates to the simplification of operations, which applies when the value of the property increases as a result of adaptation to make it more suitable for individuals with disabilities. Since 2017, gross value of all these properties can be reduced on an annual basis of a fixed amount EUR50,000 (USD54,600). Guidelines for these simplifications - Guidance on local property tax exemptions for disabled / incapacitated persons - are...
Irish Finance Minister Michael Noonan put the budget 2017, which largely focuses on the reform of the income tax system and the competitiveness of the corporate tax regime.
The sixth part of the Noonan's budget as Minister of Finance, includes tax reforms to "reduce the burden on taxpayers just under EUR 300 million (USD 330.6 million)." He explained that "these changes include around EUR 500 million in tax cuts, offset by measures to increase tax revenues in the amount of EUR 195 million."
As expected, Noonan decided to reduce the Universal social charge (USC), albeit at a slower pace than indicated in the government's pre-election manifesto.
Announcing the measures, he said: "Extremely high tax rates act as a brake on employment They distract people from the jobs and divert immigrants from returning home.".
Noonan admitted that he had "limited resources to change the situation," but said that it will allocate EUR 335 million to reduce each of the three lower USC rates by 0.5 percent. As a result, these bids will now be 0.5 percent, 2.5 percent and five percent. The ceiling of the band, which decreased 2.5 percentage payable rate will be increased from EUR 18,668 to EUR...
Irish Prime Minister Enda Kenny confirmed its commitment to the 12.5 per cent rate of corporate tax "from the visual point of tax certainty."
In his speech to the American Chamber of Commerce of Ireland (AmCham Ireland), Kenny noted that the rate will not change, and acknowledged that "this is an important element to consider with US investors to come here in Ireland."
Bob Savage, president of the American Chamber of Commerce of Ireland, welcomes the statement by Kenny. According to him, the Chamber "deeply appreciates the unequivocal declaration of the Prime Minister that his government will firmly defend our reputation as a blood pro-Corporate Business of the country, which is determined by justice and the determination processing."
In his pre-budget problem, of AmCham Ireland Ireland stressed the need "to evolve a corporate tax regime in response to the post-OPP landscape, to remain competitive."
Comments Kenny later duplicated Finance Minister Michael Noonan. "We could almost put it on the flag right now, because everyone knows at the international level, that the figure is 12.5 per cent. In fact, when entrepreneurs are thinking about Ireland, they automatically think of...
The Irish Government has proposed that the tax authorities carried out a full review of tax decisions every five years.
In a statement to the Dáil Éireann, the lower house of Parliament on 7 September 2016, Finance Minister Michael Noonan said that the tax authorities will amend the relevant guidance and regulations that will ensure that tax regulations are to remain in force for five years without a full review.
Noonan added that the income will be published in its annual report the number of inmates each year, so as to fully ensure the confidentiality of the taxpayer.
The announcement was made shortly after the conclusion of the European Commission have been made that the two tax rulings issued by Apple Ireland significantly and artificially lowered the taxes paid by Apple in Ireland since 1991. Irish Parliament endorsed the government's motion to appeal against the Commission's decision - 14 of September.
In a statement, Noonan said that "a reaction to the decision of the Commission has, at times, an outdated and unfair caricature the position of Irish tax. It is a caricature that is contrary to the evidence in recent years. The facts show our constructive engagement...
Irish Parliament approved the Government's request to appeal against the decision of the European Commission that the tax rules, given Apple's constitute illegal state aid.
The decision was adopted by 93 votes to 36. He stated that Parliament "supports the government's decision to appeal the decision of the European Commission that Ireland gives Apple an illegal state aid." Finance Minister Michael Noonan described the decision by the Commission and the Government of treatment as "a landmark moment for Irish tax policy and our place in Europe."
Noonan said that with a call "necessary to protect the integrity of our tax system, to provide certainty for business, as well as to challenge an infringement of EU state aid rules in the public parts of the competence of the tax." He added that "it is simply not true that Ireland provides a favorable tax regime in Ireland," and warned that "it is very bad for our reputation, which has been questioned."
The Commission last month concluded that the two tax regulations issued by the Apple Ireland significantly and artificially lowered the taxes paid by Apple in Ireland in order to restore "unpaid taxes" from Apple over the years...
The Irish government will make changes to the tax regime of special purpose companies established for assets to close a loophole so-called "predatory companies."
Finance Minister Michael Noonan has published an amendment to section 110 of the Law of 1997 on tax consolidation governing the taxation of such companies. He explained that "issues have been raised recently about the possible use of aggressive tax practices by some sections of the 110 companies to avoid paying tax on Irish real estate transactions." He said that the amendment was intended to address the abuse of Article 110 and to ensure the provision fenced for bona fide purposes.
Section 110 was introduced to improve the supply of Ireland as a place to conduct financial services. According to section 110, a company must be a tax resident in Ireland and do business holding or management of "qualifying assets" that should be at least EUR10m (USD11.3m). In addition to holding or management of "qualifying assets," the company can not conduct any other activity.
Gain or income under section 110 of the company subject to corporate tax at 25%. This is the norm for passive income, but taxable income is calculated...
Department of Finance of Ireland began meeting on the changes in the tax agreement with the United States.
The Department explained that the update is seen as necessary in accordance with the decision of the United States to upgrade its model tax treaty.
The United States took into account the recommendations on the update within reduce their tax base and shift profits. For example, in 2016, the model does not reduce withholding taxes on payments to highly mobile income - income that taxpayers can easily shift around the globe through deductible payments such as royalties and interest rates - which are made by persons who enjoy low or no tax in respect of income in accordance with the preferential tax regime.
In addition, a new article obliges the partners to the extent necessary to make changes to the contract, if the changes cause a doubt one of the partners in the domestic law. Model 2016 also includes measures to reduce the tax benefits of corporate inversions.
The update also included the US regulations, which provide that disputes between countries in the application of a double taxation agreement should be resolved through binding arbitration through...
The Irish Revenue published practically department in using Knowladge Department Box, special regime of income taxation that appears of intellectual property.
KDB force into a new financial law for company in 2015, the report period of what started the 1 of January, 2016 and also is belong to income, which appears by literary property software and also in case of small companies it will be other intellectual property which equal or can be patented.
As explained department, the company "will have a right for deduction in 50 percent of its own qualifications income. We can say that the income we can take from intellectual property has taxation in 6,25 percent when the rate of corporative tax is 12,5 percent.
The regime is available for companies, which provided scientific researches according to part 766 of the Taxes Consolidation Act 1997. The department provide the definition of qualifications company, qualifications income and active which appears because of using qualifications active, and it also explains a huge specific demands, which need to be done for claiming the relief.
Author: Olena Kutova
senior lawyer of the Finance Business...