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Ireland: Domestic and International Corporate Tax Update

  • Ireland
  • Tax planning and consultancy - Briefings

07-10-2020

Ireland’s corporation tax regime has long been a core part of its economic policy mix and is a long-standing anchor in respect of its offering on foreign direct investment. The internationally competitive 12.5% rate, which promotes long term stability, remains a cornerstone of Irish tax policy, in addition to certainty, transparency and a commitment to open engagement with relevant stakeholders.

Over the last number of years, we have witnessed a rapidly changing international tax landscape, commencing with the OECD’s Base Erosion and Profit Shifting (“BEPS”) project in 2013 and, more recently, the EU’s Anti-Tax Avoidance Directives (“ATAD”) and Council Directive 2018/822/EU (also known as “DAC6”).

Ireland has been actively involved in the discussions concerning BEPS, ATAD and DAC6, taking appropriate steps at a domestic level with a view to ensuring that its corporate tax regime remains competitive and continues to contribute to employment and economic growth, while also meeting the newly-agreed international tax standards. The various domestic and international tax reform initiatives were outlined in Ireland’s Corporation Tax Roadmap’ (the “Roadmap”), published by the Irish Government in September 2018.

In September 2020, the Irish Department of Finance’s Tax Strategy Group (the “TSG”) published their strategy papers for Budget 2021, including a paper focusing on corporation tax. In addition to highlighting Ireland’s ongoing commitment to the process of global tax reform, demonstrated by the consistent progress made by Ireland to date, the TSG signalled the manner in which outstanding measures outlined in the Roadmap will be implemented in due course.

In this document, we outline an update on the progress made by Ireland in implementing the relevant aspects of domestic and international tax reform, including its commitments under the BEPS project, ATAD and DAC6, in light of the TSG’s strategy paper and recent legislative enactments, as well as the unprecedented challenges resulting from the COVID-19 pandemic and the forthcoming end to the Brexit transition period on 31 December 2020.

To read the full update, please click here.

For further information, please contact:

Alan Connell, Partner and Head of Tax and Commercial – alanconnell@eversheds-sutherland.ie

Tim Kiely, Partner, Tax and Commercial – timkiely@eversheds-sutherland.ie

Robert Dever, Associate, Tax and Commercial – robertdever@eversheds-sutherland.ie