Brexit – Top reasons to set up a company in Ireland

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Britain is due to leave the EU by the end of 2020.  Now may be a good time to consider setting up business operations in Ireland.

The decision as to whether the business in Ireland should be carried on through a branch, an Irish subsidiary or an Irish standalone company may be driven more by commercial considerations rather than taxation.   OSK can advise on the tax issues arising on businesses relocating to Ireland. 

Some highlights from the Irish taxation system are outlined below:

• Our low corporation tax rate of 12.5% is the lowest in Europe although there are corporation tax surcharges on certain companies with undistributed profits, passive income and foreign income.  
• Certain Start-up companies are exempt from corporation tax for three years – but subject to meeting stringent conditions.
• A 25% tax credit is available on qualifying Research and Development expenditure.
• Dividends paid to shareholders not resident in Ireland, but resident in the EU or a country with which Ireland has a double taxation agreement, are exempt from withholding tax.
• VAT registration threshold of €75,000 for supply of goods
• VAT registration threshold of €37,500 on supply of services
• A non-resident shareholder disposing of shares in an Irish incorporated company will generally not have a liability to Irish capital gains tax
• A shareholder resident in Ireland would be liable to capital gains tax on the sale of shares subject to qualifying for entrepreneurs’ relief

Commercial, non-tax, Highlights

• Keeping your EU trade in a separate Irish Based entity would help manage business and commercial risks and have certain advantages including:
  • The Euro currency means there are no exchange fees when dealing across the majority of EU countries
  • Ireland is an ideal country for foreign direct investment and an attractive market for a business aiming to establish an EU presence. 
  • Ireland is only native English-speaking country in the EU and the similarities in how we do business allows us to provide a comparable business environment;

For information on setting up a business in Ireland, on corporate taxation issues or taxes on employee relocations please contact Imelda Prendergast, Support for Brexit business in Ireland on 00353 1 439 4206 or prendergasti@osk.ie; www.osk.ie

Read OSK Support for Brexit businesses in Ireland guide

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