Ireland’s 12.5% corporation tax rate is not going to change before 2020, confirmed finance minister Paschal Donohoe, announcing the publication of an independent report on a review of Ireland’s corporation tax code. The rate ‘remains the bedrock of our competitive corporation tax regime’, Mr Donohoe said.
The review states that the increase in Ireland’s corporation tax receipts can be expected to be sustainable up to 2020, but makes a number of recommendations, including:
· ensuring the regime continues to meet OECD and EU standards on ‘preferential’ or ‘potentially harmful’ tax regimes;
· consideration a change to a territorial tax system for foreign branches of Irish-resident companies;
· updating and expanding the scope of Ireland’s transfer pricing regime; and
· introducing a cap on capital allowances claims with respect to intangible assets.
The Irish government will launch a consultation on the review at its forthcoming Budget.
Ireland’s 12.5% corporation tax rate is not going to change before 2020, confirmed finance minister Paschal Donohoe, announcing the publication of an independent report on a review of Ireland’s corporation tax code. The rate ‘remains the bedrock of our competitive corporation tax regime’, Mr Donohoe said.
The review states that the increase in Ireland’s corporation tax receipts can be expected to be sustainable up to 2020, but makes a number of recommendations, including:
· ensuring the regime continues to meet OECD and EU standards on ‘preferential’ or ‘potentially harmful’ tax regimes;
· consideration a change to a territorial tax system for foreign branches of Irish-resident companies;
· updating and expanding the scope of Ireland’s transfer pricing regime; and
· introducing a cap on capital allowances claims with respect to intangible assets.
The Irish government will launch a consultation on the review at its forthcoming Budget.
