On 5 September 2018, Ireland’s Department of Finance released Ireland’s Corporation Tax Roadmap setting out the future of Ireland’s corporation tax regime. The Roadmap reflects feedback to a consultation on recommendations for consideration which were made by independent expert Seamus Coffey in his Review of Ireland’s Corporation Tax Code.
The Roadmap details Ireland’s adoption of measures that all Member States are required to adopt under the European Union (EU) Anti-Tax Avoidance Directive. As expected, Ireland intends to adopt ATAD measures in line with the Directive but not to go beyond its requirements.
The Roadmap measures include updating Ireland’s transfer pricing regime to current international best practice standards under OECD transfer pricing guidelines from 1 January 2020. Detailed implementation measures to be included in Finance Bill 2019 are to be subject to a consultation which will launch in early 2019.
Ireland has committed to continuing to implement EU and OECD wide transparency related initiatives such as exchange of mandatory reporting on cross-border arrangements under the EU’s Directive on Administrative Cooperation (DAC) in taxation matters.
It remains Ireland’s policy that the design of its corporation tax regime is aligned with continually evolving developments in the framework for international taxation. Although operating in very uncertain times, by choosing to adopt measures that have achieved multilateral consensus, Ireland is seeking to retain as much certainty as possible for business.
KPMG believes that Ireland’s regime will continue to remain competitive in the context of Ireland’s comparative attractiveness as a location for business. There is no change to the 12.5% rate of corporation tax. Ireland’s road map restates its commitment to this rate.
The government will seek feedback from stakeholders as part of the detailed implementation of the announced measures. KPMG remains committed to actively engaging in providing feedback on the impact of measures for business.
To learn more about the measures included in the Roadmap and what they might mean for your business, click to review KPMG’s On a Page summary.