Save content
Have you found this content useful? Use the button above to save it to your profile.
AIA

Ireland to close 'double-Irish' tax loophole

by
14th Oct 2014
Save content
Have you found this content useful? Use the button above to save it to your profile.

Irish finance minister Michael Noonan announced that the double-Irish tax loophole would be closed in the country's first non-austerity budget in seven years.

The minister announced today in Budget 2015, along with a raft of corporate tax measures, that he was doing so by changing residency rules to require all companies registered in Ireland to be tax resident.

America and the EU have both criticised the loophole which allowed companies such as Apple to cut their overseas tax rates. 

The law will take effect from 1 January 2015 for new companies and there will be a transition period for existing companies until 2020. 

“This proactive change will not bring an end to international tax planning. We are giving certainty to investors about corporate tax for the next decade," minister Noonan said. 

“These measures will enhance Ireland’s corporate tax regime and align it with best practice internationally."

However, he added that its 12.5% corporation tax rate would "never" be up for discussion and is a settled policy.

In addition, he announced a consultation for a 'Knowledge Development Box' - similar to the patent box in the UK. This is expected to come into force in a year’s time following a consultation process. 

Minister Noonan also removed the CGT he introduced to incentivise purchase of property between Dec 11 and 2014 as it has "achieved its objective and is no longer needed".

Also removed was the 80% windfall tax applying to chargeable gains on disposal or development of land attributable to planning decisions made since October 2009.

Tax relief for the new water charges, plans to cut income tax on low and middle wage earners and new incentives for first time buyers were also announced by the budget, which ended to the tune of a Robert Frost poem. 

"We as a country have travelled a long road to get to this point. Without the support and resilience of the Irish people, our economy would not be growing. I believe this budget is the right approach for Ireland at this point in our recovery," the minister finished.

For more views on the Irish budget, see our live blog below and keep an eye on the site for further analysis.

Live Blog Irish Budget 2015
 
window.cilAsyncInit = function() {cilEmbedManager.init()};(function() {if (window.cilVwRand === undefined) { window.cilVwRand = Math.floor(Math.random()*10000000); }var e = document.createElement('script');e.async = true;var domain = (document.location.protocol == 'http:' || document.location.protocol == 'file:') ? 'http://cdnsl.coveritlive.com' : 'https://cdnslssl.coveritlive.com';e.src = domain + '/vw.js?v=' + window.cilVwRand;e.id = 'cilScript-3720fdf031';document.getElementById('cil-root-block-3720fdf031').appendChild(e);}());

Tags:

Replies (0)

Please login or register to join the discussion.

There are currently no replies, be the first to post a reply.