This is buoyed by goverment pressure from USA & UK offshore jursidictions such as Cayman Islands & Bermuda. Our low corporation tax rates and the continuing government commitment to these also offers a great incentive and presents a desirable option to Foreign owned corporates.

We continue to notice a steady stream of foreign companies locating in Ireland who generally operate though a private limited company or branch.

A copy of our article on corporation tax in Ireland can be viewed at http://www.omahonydonnelly.ie/corporate-taxation-ireland.html

If you would like assistance and advice on Irish corporation tax issues and setting up a private limited company or branch then we are well placed, being experienced accountants, located in Cork, Ireland with considerable experience of advising US, UK and foreign companies locating in Ireland.

Michael O’Mahony FCCA
O’Mahony Donnelly Contact Details

Providing the non-resident company is located either in the EU (except for Ireland) or a double tax treaty country – DTT (of which there are currently 48 in force)  and a declaration has been made in the prescribed format then it is possible to pay dividends in this way.

How the dividends are then taxed in the recipients country of residence depends on the tax laws of that country.

If you would like assistance with this process either in Ireland and/or in the recipient country See O’Mahony Donnelly contact details.

We can also introduce you to one of our associated firms in Enterprise Worldwide who can assist with advice in the parent company’s country.

A P11D, employer return of benefits in kind, is obligatory where the employee has left and also where there may be other benefits not reportable through the payroll.  Such benefits may include employer PRSA payments, where the total employee and employer PRSA payments exceed the maximum tax free % normally allowed for an individual. The deadline for a P11D for year ended 31/12/2009 is 31 May 2010. This is just over 3 weeks so if you require any assistance from us with your P11D compliance see O’Mahony contact details.

The case involved businessman Robert Gaines-Cooper, who has lived in the Seychelles since 1976. Despite the fact that he had adhered to previous HM Revenue & Customs (HMRC) guidance by spending fewer than 91 days in the UK on average each year, the judges ruled he had nevertheless maintained ties with the country.

The Appeal Court said that the 91-day rule did not actually establish non-residency, and ruled that the UK had remained the ‘centre of gravity’ of the defendant’s life and interests.

The ruling means that thousands of UK tax exiles could have their lifestyle scrutinised by the Revenue, with factors such as the number and length of visits to the UK, any economic and business ties, and ongoing connections such as membership of UK banks or sporting clubs, being taken into consideration. Source :www.lawrencegrant.co.uk

There has been  pressure for Ireland to make significant changes to our system following the commission  on taxation report recently… to provide further equity in our tax system….which they did in some key areas such as the new minimum tax on certain non Irish resident, Irish domiciled individuals.

However, Ireland continues to favour the remittance basis of taxation for Irish resident, non- domiciled individuals…a key difference between Ireland and the UK, who have a minimum tax on their UK resident non domiciled individuals of £ 30,000  per annum. This has resulted in several UK expatriates to re-locate to Ireland making substantial savings in personal income tax.

If their tax affairs and finances are structured in the correct way many can benefit to the tune of several thousands of pounds.

Further proposed increases in UK Income tax from 06/04/2010…an additional tax rate of 50% on Income over £ 150,000 may act as the ’straw that broke the camel’s back’ for many…and will increase the gap between the UK and Ireland’s personal taxation of non-domiciled individuals, re-affirming Ireland’s position as a location of choice .

With the UK’s minimum tax charge of £ 30,000 per annum coupled with a marginal tax rate of 50% on UK earnings over £ 150,000, it is easy to see why UK resident non domiciled individuals may be looking to head west for a solution to their mounting UK tax burden.

We advise several Irish resident non-domiciled clients on how these issues work in practice and would be delighted to assist with any queries or issues you have.