The EU Anti-Tax Avoidance Directive (ATAD) was agreed by EU member states in 2016. Under the Directive, Ireland was required to introduce an ATAD-compliant exit tax for companies which transfer their tax residence or business assets outside of Ireland. The regime had to be implemented by 1 January 2020.
Ireland’s Minister for Finance confirmed on Budget Day 2019 in October 2018 that Ireland would bring forward the date of implementation of an ATAD-compliant exit tax regime. The minister considered that early introduction of this measure would provide certainty to businesses currently located in Ireland and to those considering investing in Ireland in the future.
In this article, Sharon Burke reviews the Irish exit tax measures and considers how they affect both domestic and foreign owned (FDI) businesses operating in Ireland.