Lots of change for Irish companies and individuals in the New Year - Deloitte has been saved
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.
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.
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