India has become a major player on the global stage. Many multinationals now have a presence in India and Indian companies too are investing abroad.

Given the scale of recent economic growth in India, it has developed into a very important location for expanding Irish companies and multinational companies. There is considerable scope to use Ireland as a platform for investing into India. The attractions of using Ireland include:

• Competitive cost base – significant competitiveness improvement 
• English speaking 
• Young, dynamic and well educated workforce 
• Common law legal system 
• Various withholding tax exemptions for interest and dividend payments 
• Incentives for employees working in Russia
  

Similarly, Ireland is an ideal location for establishing activities outside of India. In addition to the above, the attraction of using Ireland to expand activities outside of India include:

• Gateway to Europe
• Member of the Eurozone 
• Single Financial Services Regulatory Authority 
• 12.5% corporation tax rate on trading profits 
• Attractive investment management regime 
• Extensive tax treaty network 
• 37.5% relief for R&D activities 
• Attractive intellectual property regime 
• Relief for certain start-up companies 
• Incentives for employees relocating to Ireland
  

KPMG range of services

KPMG Ireland has a team focused on investment into and out of India. Together with our colleagues in KPMG India, we provide our clients with complete tax advice on the issues that arise. Our tax services include advising on:

• Investing in Ireland and India 
• Financing 
• VAT and global indirect taxes 
• Transfer pricing 
• Personal and corporate tax compliance services 
• Payroll taxes