Ireland’s tax regime has many features which has made Ireland a key part of the overall group structure of many large multinational groups. Overseas companies continue to invest in Ireland as a European base in relation to various industries not least for its corporate tax rate of 12.5% but also in relation to Ireland’s access to an extensive treaty network, tax relief for R&D, capital allowances on intellectual property, together with participation exemption.
A key feature of the Irish corporate tax regime is the 12.5% corporation tax rate which applies to all trading income (with a small number of exceptions). This 12.5% rate applies to a wide range of activities including Intellectual Property (“IP”) development activities. Also, Ireland has become a location of choice for managing, developing and exploiting IP assets.
With the 12.5% corporate tax rate seen as a ‘global brand’ for Ireland we can advise companies that are investing into Ireland.
Trading in other jurisdictions outside of Ireland can be daunting not least dealing with the tax issues.
At BDO we can advise on an appropriate tax structure and will assist in order that local taxes payable are minimised.
With trading outside Ireland we can liaise with BDO tax specialists in overseas countries to identify planning opportunities which will minimise global tax together with tax and social security issues for international assignees, the repatriation of the profits and planning for double tax relief.