Press releases

Lots of change for Irish companies and individuals in the New Year - Deloitte

Finance Bill 2018

Commenting on Finance Bill 2018, published today, Louise Kelly, Tax Partner at Deloitte said:

Finance Bill 2018 will bring a lot of change to Ireland’s tax rules next year with new legislation with respect to Controlled Foreign Company (CFC) rules, Investment in Corporate Trades and several amendments to our exit tax rules.

The legislation proposed for Ireland’s new CFC rules will certainly be of interest for many multinational companies operating in Ireland and they will begin to digest what this means for their group over the coming weeks as the Finance Bill passes the various legislative stages. The EU Anti Tax Avoidance Directive (ATAD) requires all Member States of the EU to introduce or bring existing CFC rules in line with the directive by 1 January 2019. Where Ireland has more onerous CFC rules than other EU jurisdictions, this could impact on Ireland’s competitive offering vis-à-vis our EU colleagues.

Finance Bill 2018, published today, provided draft legislation in respect of the CFC rules that will become effective from 1 January 2019. The draft legislation goes beyond the standard required by the EU ATAD.

Kelly commented:

Deloitte provided feedback to the Department of Finance on the proposed CFC rules in September via a public consultation. At that time, we noted that Ireland was adopting more onerous rules than needed and suggested a re-evaluation of some areas, including the use of a broader definition of “control” than the ATAD required. In times of heightened international competitiveness and trade disputes, it is important that Ireland’s CFC rules are not more onerous than needed.

Commenting further on today’s Finance Bill, Louise Kelly said:

While it brings change with it, overall Finance Bill 2018 didn’t contain too many surprises. There were, however, some measures that were not announced on Budget Day. These include amendments aimed at addressing administrative difficulties in the tax appeal process, measures to simplify and modernise the operation of Vehicle Registration Tax, the introduction of a minimum continuous rental period of 29 days to qualify for Rent-a-Room relief and measures to ensure compliance of certain agri-taxation provisions with EU State Aid rules, amongst others. Furthermore, we do note the extension of CGT relief on disposal of site to a child to include spouses and civil partners.

Ends

For Further Information Please Contact

Aoibheann O’Sullivan

Murray

01 498 0300

087 6291453

aosullivan@murrayconsultants.ie

Claire Quinn

Deloitte

01 417 2356

087 9777783

cquinn@deloitte.ie

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In this press release references to Deloitte are references to Deloitte Ireland LLP. The information contained in this press release is correct at the time of going to press. Deloitte Ireland LLP, is the Ireland affiliate of Deloitte NWE LLP, a member firm of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”). DTTL and each of its member firms are legally separate and independent entities. DTTL and Deloitte NWE LLP do not provide services to clients. Please see www.deloitte.com/about to learn more about our global network of member firms.

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