Tax Services

Independent Review of Irish Corporate Tax Code published

The Minister for Finance and Public Expenditure and Reform has published the Independent Review of the Irish Corporate Tax Code carried out by Seamus Coffey.

Imminent VAT deadlines - 30 September 2017

This is the deadline for EU businesses to submit a claim for foreign VAT incurred in 2016 in another EU Member State (in which they are not required to be VAT registered). The claim amount must exceed €400.

Reliance on Revenue confirmations more than 5 years old – 30 June deadline approaching

In January 2017 the Revenue Commissioners issued new guidance on the validity of its opinions and confirmations, advising that all opinions issued before 1 January 2012 will cease to have effect from 1 January 2017 unless the taxpayer applies before 30 June 2017 for an extension.

AG Opinions on EU VAT cost sharing exemption

EU Member States have interpreted the VAT CSE rules differently, leading to complexities, particularly where services flow cross-border. On Wednesday 1 March 2017 the Court of Justice of the European Union released two Advocate General Opinions concerning its operation.

Offshore matters – clock is ticking and now is the time to disclose

In an effort to penalise tax evasion, the Irish government passed the Finance Act 2016. It lists measures limiting a taxpayer’s ability to use Irish Revenue’s voluntary disclosure regime to regularise their offshore tax affairs.

Research & Development Tax Credit Regime: welcome relief for micro and small companies

The Irish Revenue's eBrief No. 17/17 , issued on 17 February 2017, covers R&D tax credit claims in respect of projects supported by IDA or Enterprise Ireland R&D grants, and is a welcome development for micro and small companies who meet the criteria.

Significant changes to the tax treatment of non-Irish employments exercised in Ireland

The Irish Revenue released an e-brief on 22 December 2016 highlighting a number of updates to their Statement of Practice IT/3/07, which provides guidance on the operation of PAYE for non-Irish employments exercised in Ireland.

Review of corporate tax code must underpin Ireland’s advantage

Kevin McLoughlin, Head of Tax, says Ireland must continue as a compelling foreign direct investment location, and help shape the international tax landscape.

Country by Country Reporting: Finance Bill and new Irish Guidance

Ireland’s new Country by Country (CbC) reporting requirements took effect on 1 January 2016 and require certain Irish parented groups, and in specific instances, domestic subsidiaries of foreign parented groups, to report data on revenues, profits, taxes paid / accrued, employee numbers, and other data, on a country by country basis to the Revenue Commissioners.

Knowledge Development Box (Certification of Inventions) Bill 2016

Released on 4 November 2016, this provides a legislative framework to enable small- and medium-sized enterprises involved in R&D activities to access an effective tax rate of 6.25% in respect of qualifying profits under the Knowledge Development Box, enacted in December 2015.

Ireland independent expert to review Irish corporate tax code

In his 2017 Budget the Minister for Finance announced the appointment of an independent expert, Seamus Coffey, to review Ireland's corporate tax code (the Expert Review) in light of the current international tax environment.

Ireland updates international tax strategy

As part of his 2017 Budget the Minister for Finance published Update on Ireland’s International Tax Strategy (2016 Strategy Update), the second annual update outlining Ireland's current and future position from an international tax policy perspective.

PAYE Modernisation

In his 2017 Budget speech the Minister for Finance announced the launch of a consultative process regarding modernisation of the PAYE system.

Imminent VAT deadlines

30 September 2016 is the deadline for EU businesses to submit a claim for foreign VAT incurred in 2015 in another EU Member State (in which they are not required to be VAT registered). The claim amount must exceed €400.

Update on Irish Employment Permit Legislation and immigration matters

The Department of Jobs, Enterprise and Innovation and the Irish Naturalisation Immigration Services have introduced new policies and regulations.

Irish bilateral APA programme launched

The Irish Revenue Commissioners has formally introduced a bilateral Advance Pricing Agreement programme with the publication of guidelines on 23 June 2016.

VAT treatment of payment-related services: CJEU judgments in the NEC and Bookit cases

On 26 May 2016 the Court of Justice of the European Union released its judgments in the National Exhibition Centre Limited and Bookit Limited cases, referred by the UK Upper Tribunal and First-tier Tribunal respectively.

Ireland Finance Bill 2015 - Small Benefits Exemption

Finance Bill 2015 contains provisions allowing favourable tax treatment for certain benefits provided to staff.

Country-by-Country Reporting - Irish implementation

Irish legislation that will adopt the new OECD Country-by-Country-Reporting (CBCR) requirement has been included in Finance Bill 2015.

Ireland Finance Bill 2015

Tax treatment of travel and subsistence expenses paid to, or on behalf of, non-executive directors.

Ireland Knowledge Development Box - 30 October 2015

The much anticipated legislation introducing the Irish Knowledge Development Box (KDB) from 1 January 2016 was published in the recent Finance Bill.

Ireland Knowledge Development Box - 16 October 2015

On 13 October 2015 the Irish Minister for Finance announced that the 2015 Finance Bill will include legislation to introduce the Irish Knowledge Development Box (KDB) from 1 January 2016.

EU Succession Regulation

A new EU Succession Regulation means Irish nationals can elect for Irish law to apply to the succession of property in EU countries.

Deadline to submit a claim for Foreign VAT incurred in 2014

The deadline for EU businesses to submit a claim for foreign VAT incurred in 2014 in another EU Member State is 30 September 2015.

Take two for taxpayers as Revenue lose two high court film appeals

Gilligan J, in Revenue Commissioners v Ansound Ltd (in liquidation) held against Revenue in deciding that he could not overturn a Circuit Court Judge (CCJ) finding of fact that a film production company had incurred qualifying expenditure on a film in the State.

Knowledge Development Box Feedback Statement

This feedback statement addresses the main issues arising from the consultation on the introduction of a knowledge development box and aims to clarify the Department of Finance’s position.

Proposed changes to the UK tax treatment of termination payments

The UK government issued a consultation paper on 24 July 2015 setting out proposals for a fundamental change to the UK tax treatment of payments made in connections with the termination of employment.

Consultation on tax treatment of travel and subsistence expenses launched

The Minister for Finance, Michael Noonan, has initiated a consultation process on the tax treatment of expenses of travel and subsistence for employees and office holders (including non-executive directors).

The Revenue Commissioners have updated Leaflet IT54 ‘Employee’s Subsistence Expenses’ in line with recent changes to Civil Service subsistence rates.

Relevant contracts tax (RCT) is a withholding tax apppling, at rates up to 35%, to payments by a principal contractor to a subcontractor for operations carried out in Ireland. Up to now, it applied to relevant operations carried on in designated areas of the Continental Shelf (i.e. where Ireland holds exploration and exploitation rights). Following submissions by EY on RCT's jurisdictional limitation, Revenue has confirmed that it does not apply where relevant operations are carried on outside Ireland’s 12 mile territorial waters.

The Living City Initiative was announced by the Minister for Finance in his 2013 Budget speech and legislated for over 3 subsequent Finance Acts. Following receipt of approval from the EU Commission under State Aid rules, the provisions now take effect from 5 May 2015.

Guiding business through the Irish tax landscape

A reminder that the deadline to apply for a Personal Fund Threshold (PFT) of €2.3m for pension fund purposes must be made before 2 July 2015.

In its judgment in the case of Skandia America Corporation USA, Sweden branch released earlier today, the Court of Justice of the European Union found that a VAT group is a separate taxpayer from its constituent members.

The Irish Revenue Commissioners have this week issued non-statutory guidance in relation to the tax treatment of travel and related expenses paid to non-executive directors (NEDs) for attendance at board meetings.

As part of the Budget 2015 preparations, the Minister for Finance is examining ways in which the competitiveness of Ireland’s regime can be enhanced and Ireland’s reputation protected.

An amendment to the VAT Consolidation Act could have a considerable impact on some taxpayers.

Where the capital value of a pension exceeds what is known as the Standard Fund Threshold (SFT), the excess is subject to income tax at 41%, applied by the pension fund administrator.

On 18 June 2014 the Irish Government announced its intention to introduce a new tax regime for petroleum exploration and production based on a review of Ireland's fiscal system for oil and gas conducted by consultants Wood Mackenzie.

On June 11 2014 the European Commission said it will start formal enquiries into advance opinions issued by the Netherlands, Luxembourg and Ireland to three corporate groups with a view to ascertaining their compliance with state aid rules. This is part of a wider ongoing Commission investigation into tax rulings and patent boxes in a number of Member States, and enquiries into actions taken by other Member States are expectated to start in due course.

The Home Renovation Incentive (HRI) gives homeowners tax relief by way of an income tax credit at 13.5% of qualifying expenditure incurred on repair, renovation or improvements carried out on their principal residence from 25 October 2013 to 31 December 2015. Qualifying expenditure is subject to 13.5% VAT.

Updated to reflect Finance (No.2) Act 2013, Tax Matters provides a comprehensive overview of the Irish taxation system. Areas covered include personal taxes, pensions and capital taxes, local property tax, corporation tax and indirect taxes. Also included is a directory of our Tax Services contacts.

On 13 March 2014 the Court of Justice of the European Union (CJEU) released its judgment in the Danish case of ATP PensionService A/S (ATP)(C-464/12).

Arrangement scheme for return of value to Vodafone Group plc shareholders under Part 26 of the UK Companies Act 2006 tax alert.

Budget 2014 announced a reduction with effect from 1 January 2014 in the Standard Fund Threshold (the SFT) from €2.3m to €2m. Where the capital value of a pension exceeds the SFT, the excess is subject to income tax at 41% which is applied by the pension fund administrator.

The new Worldwide R&D incentives reference guide offers an overview of the various research and development incentive regimes in 34 countries. It also provides an overview of the European Union’s new Horizon 2020 program.

On 15 October the Irish Minister for Finance announced proposals to prevent “stateless” Irish incorporated companies avoiding a charge to Irish corporation tax on profits.

Published on 24 October, Finance (No.2) Bill 2013, Ireland’s second Finance Bill of 2013, looks to implement Budget 2014’s tax elements, announced on 15 October.

The EY Budget Alert provides an in-depth look at how Budget 2014 will affect the public and businesses within Ireland. It provides analysis on changes within Pensions, R&D, Business tax measures, Capital taxes, Entrepreneurship, Indirect tax, Excise duty, and VAT. It also provides case studies of how budgetary changes will affect the wider population.

The Minister for Finance announced his Budget proposals for 2014 this afternoon. This Alert summarises the main items set down in an International Tax Strategy Statement which was published as part of the Budget supporting papers. A comprehensive Tax Alert on other proposals will issue shortly.

Tax Matters 2013

Updated to reflect Finance Act 2013, Tax Matters provides a comprehensive overview of the Irish taxation system. Areas covered include personal tax, capital taxes, corporation tax and indirect taxes. Also included is a  directory of our Tax Services Contacts.

Le Crédit Lyonnais: CJEU judgment: Apportionment of input VAT: Overseas branch income

The Court of Justice of the European Union (CJEU) delivered its judgment on 12 September 2013 in the case of Le Crédit Lyonnais (C-388/11) on the extent to which the turnover based pro-rata partial exemption calculation may include revenue generated by overseas branches.

Private client services – pre Budget 2014 – tax matters to consider

Budget 2014 will be announced on 15 October 2013. This Alert provides a reminder of some previously announced tax measures due to take effect on 1 January 2014. It also highlights matters that may need to be considered this year bearing in mind the upcoming personal tax return filing deadline and possible further changes to be announced in Budget 2014.

Banking levy regulations issued

The First Tier Tribunal in the UK has sought a preliminary ruling from the European Court of Justice, on questions relating to the VAT treatment of payments received by a retailer following the fraudulent use of credit/debit cards by customers.

Budget 2013 – employer issues

Budget 2013 contained a number of measures which will affect employers and payrolls such as PRSI, maternity benefit, universal social charge (USC), foreign earnings deduction (FED), statutory redundancy rebate, taxation of lump sums and preferential loans.

CJEU decision – Irish dividend taxation rules

On 13 November 2012, the Court of Justice of the European Union (CJEU) handed down its latest decision in an important case (FII GLO (C-35/11)) concerning the pre-2009 UK corporation tax treatment of foreign (non-UK) dividends. The CJEU confirmed that the application, in the UK, of an exemption system for domestic dividends and a credit system for foreign dividends was contrary to EU law.

Have you reviewed your VAT recovery rate

If you apply a VAT recovery rate to your costs and your accounts year end is 31 December it is time to carry out the mandatory annual VAT recovery review.

Ireland competes fairly for foreign direct investment

Mr Saint-Amans (Director of the OECD Centre for Tax Policy) was a keynote speaker at a conference in Dublin organised by the Irish Department of Finance covering themes of tax and economics.

Ireland's tax treaty network update

Irish tax treatment of cross border restricted stock units

Employees posted to Ireland on assignment may hold Restricted Stock Units (RSUs) granted while the employee was tax resident and employed in their home country, and which subsequently vest when they are tax resident in Ireland. This can give rise to complex issues involving double taxation in Ireland and the home country.

iXBRL mandatory filing – Phase 2

In September 2012 EY Tax Alert 13/12 detailed Revenue's launch of a facility in Revenue On-line Service (ROS) for filing of financial statements using inline extensible Business Reporting Language (iXBRL) format and also outlined Revenue's plan to make this format mandatory for all corporation tax filers on a phased basis.

Pension related changes

This alert details pensions/retirement benefit changes included in the 2012 Finance Bill.

REIT alert: Real Estate Investment Trusts introduced in Ireland

As announced in last December’s Irish Budget, Ireland’s 2013 Finance Act contains measures facilitating the establishment of Irish Real Estate Investment Trust (REIT) structures, aimed at attracting international investment to the Irish property market. REITs are a globally recognised standard for investing in real property assets and, as expected, the Irish legislation, for the most part, follows the UK’s regime.

Revenue announce submission of financial statements in iXBRL

Revenue recently announced that from 23 November 2012, for corporation tax filers, it will be providing an option for uploading financial statements in in-line eXtensible Business Reporting Language (iXBRL) format via the Revenue On line Service (ROS). It will be providing a similar optional facility for income tax filers from 1 January 2013.

Share option gains – the collection of PRSI

The Minister for Social Protection has signed the commencement order bringing into effect Section 9 of the Social Welfare and Pensions Act 2012. This removes the obligation on employers to collect employee PRSI on certain share option gains exercised on or after 1 July 2012.

Stamp duty self assessment

Finance Act 2012 sets out the legislation required to bring stamp duty fully within the self-assessment system. The Ministerial Order starting these measures provides that the changes will take effect in respect of instruments executed on or after 7 July 2012.

Tax alert – Property tax alert 2013

The Local Property Tax (LPT), an annual tax on Irish residential property, will come into effect from 1 July 2013. A half-year charge will apply for 2013 with the tax applying on a full year basis from 2014 onwards.

VAT recovery rate 2013

Have you carried out the mandatory review of your VAT recovery rate? The clock is ticking!

If you apply a VAT recovery rate to your costs and your accounts year end is 31 December the clock is ticking in respect to the mandatory annual VAT recovery review.

VAT alert – Recent CJEU decision on Irish VAT grouping for holding companies

VAT alert – imminent VAT deadlines

VAT recovery or VAT exemption alert

Wheels and GfBk: CJEU decisions on the VAT exemption for fund management

Year end considerations