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Ireland’s 2020 Budget

Ireland’s 2020 Budget

Irish budget confirms significant international tax changes

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In its 2020 budget, Ireland reaffirms several important proposed tax changes that will be effective January 1, 2020, including significant amendments to its transfer pricing rules. The budget also reaffirms Ireland will introduce anti-hybrid anti-avoidance rules as of January 1, 2020, and include new EU mandatory disclosure rules as of July 1, 2020 (as required under EU Anti-Tax Avoidance Directives). Finally, the budget reaffirms Ireland's long-term commitment to its current 12.5% corporate tax rate.

Ireland's budget was released on October 8, 2019. Finance Bill 2019 contains provisions to enact these measures and was published on October 17, 2019.

Other tax measures included in the budget

The 2020 budget also includes new measures that may be of interest to multinationals operating in Ireland, including measures to:

  • Introduce of a 1% stamp duty charge targeted at certain company acquisitions
  • Increase the stamp duty on non-residential property to 7.5% (from 6%), effective October 9, 2019
  • Increase the dividend withholding tax to 25% (from 20%) as of January 1, 2020 (subject to domestic and treaty exemptions)
  • Broaden the scope of the Irish exit tax, by removing the requirement in certain scenarios for the company transferring the business or asset to be resident in a Member State (consistent with EU Anti-Tax Avoidance Directive requirements)
  • Clarify that the deemed disposal of assets of a company ceasing to be resident in Ireland for purposes of the Irish exit tax, takes place immediately before the company ceases to be resident in Ireland.

For more information, contact your KPMG advisor.

Information is current to October 22, 2019. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500

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