As the opportunities and challenges of Brexit begin to take shape, Ireland is expected to increasingly become the place of choice for companies looking to relocate their European hubs from the UK. Ireland's close ties with the UK, not least its geographical proximity, common language and time zone, as well as its comparable legal system and culture give it a significant advantage for UK-based multinationals.

Advantages

• "Effective" Zero Tax Dividends (on certain qualifying dividends)
• Attractive for companies heavily involved in R&D as a 25% tax credit is given
• No physical presence is required
• Attractive IP regime
• Nominee services are allowed
• Large number of double tax treaties
• English Language

Disadvantages

• Incorporation takes 5 - 15 days
• Non trading income is taxed at 25%
• Substance is required to safeguard the 12.5% corporation tax
• VAT rate of 23%
• Proper accounting records must be maintained and filed locally
• Audit is required if threshold is exceeded*
• Corporation tax rate 12.5%
• Public record of financial statements 
• Simple capital structure allowed only
• Corporate directors are not allowed
• One week to incorporate

Note: Main Audit threshold requirements*

To avoid a statutory audit the Irish Company must meet at least the following main requirements:

• Turnover lower than €7.3m, and
• Total assets lower than €3.65m, and
• Employee fewer than 50 people

Characteristics

• Officers - company director, secretary, registered office must be appointed
• Year end audit must be performed 
• Year end tax returns must be prepared and submitted
• Companies Act 2014
• Share capital classes registered shares and preference shares with bearer shares not permitted
• Services such as insurance, fund management, collective incentive schemes, trustee services and management are not included
• Must have a registered office in Ireland.
• Director must be different from company secretary and at least one director must be within the European Economic Area (EEA). Corporate directors are not allowed required for an Irish company formation.

Available Double Taxation Treaties