In Ireland we are fortunate to have one of the world’s most business-friendly tax regimes. Among its attractive features are:
- A 12.5% rate of corporation tax,
- A 6.25% rate in the Knowledge Development Box,
- A R&D credit of 25% for certain types of expenditure,
- A Participation Exemption that allows a holding company exemption from capital gains tax on the disposal of shares in domestic and foreign subsidiaries and exemption from tax on certain dividends from subsidiaries.
Typical Problems that we come across
Sometime business structures evolve over time to meet non-tax objectives. Alternatively, they can fail to keep pace with changes in tax legislation. When either of these things happen, it is common to find that the business is not making full use of Ireland’s range of tax incentives. This leads to tax leakage that hurts the bottom line and prevents the business from reaching its full, commercial potential.
How We Can Help
In cases like this we will take the time to get to know both the client’s business and its shareholders and examine the objectives of both. Following this we would prepare for the business owners an analysis of the tax leakages and a plan that will help eliminate these. We will discuss the plan with the owners and with their assistance will implement it.