Questions and Answers

What do I need to consider from a tax perspective if I choose to set up a company here?

I have a business based in the UK and wish to set up a company in Ireland to trade with the EU. What are the key tax consideration I need to be aware of?

If you are planning to set up a company in Ireland from abroad there are important questions you need to consider before making it a reality.

You can read about the company law considerations here.

You should always seek specific advice for your own situation but here is just a flavour of what you will need to consider from a tax perspective:

Presence in Ireland

Will your company have a real/tangible presence in Ireland?

Setting up a company in Ireland is just one step in the process of using Ireland as a gateway to Europe.

Irish Revenue, in particular, will want to see that the company has a real and tangible presence here if they are to allow the company avail of the 12.5% corporate tax rate or grant the company an Irish VAT number for example.

Some things that the Revenue may look at in this regard are:

Does the company have an office in Ireland?
Do they have employees situated here?
Are directors holding board meetings here?
Are the majority of directors Irish resident?

The above list is not exhaustive and every business looking to establish a presence in Ireland should ensure they have taken comprehensive advice as there may be significant tax consequences if this is not right from the very start.

Tax Filings

New companies in Ireland need to register for all relevant taxes in a timely manner to avoid potential fines from Revenue for non-compliance.

This process is usually done by an accountant. The types of tax you may need to register for include, Corporation Tax, Value Added Tax (VAT), Relevant Contracts Tax (RCT) and Employers PAYE.

Also, proprietary directors are obliged to file a self-assessed income tax return (Form 11) before the 31 October every year. This return must be made even if the director only has PAYE income from which taxes have been already deducted.

We can help!

At TaxAssist Accountants we can help with company formations, annual returns, company tax filings, director’s returns and more. Contact us today to set up a free initial consultation.

Date published 14 Apr 2021 | Last updated 14 Apr 2021

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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