Factsheets

Throughout the past number of years, Ireland has become an increasingly attractive market for international players seeking to acquire new businesses. The strength of the Irish economy combined with historically relatively inexpensive debt has enabled shareholders of domestic businesses to capitalise on opportunities for growth.

DAC8 enters into force on 13 November 2023 and for the most part will come into effect for all EU Member States from 1 January 2026. Read the key measures introduced to enhance tax compliance and improve transparency.

On 17 October 2023, the Council of the EU adopted DAC8, the 7th amendment to the Directive on Administrative Cooperation (“DAC”) directive amending EU rules on administrative cooperation in the area of taxation. The Directive will enter into force on 13 November 2023, and Member States will have until 31 December 2025 to transpose the Directive into national law, after which the provisions would come into effect as of 1 January 2026.

When designing a fit-for-purpose governance model, trust and transparency are the keys to success. Strong governance practices must permeate the culture of the organisation, and employees at all levels should play a role in a executing a lived governance model that helps the company thrive.

The Individual Accountability Framework (IAF) impacts all Regulated Financial Services Providers (RFSPs) and individuals who perform controlled functions (CFs) on their behalf. Certain RFSPs (including most credit institutions, insurance firms and MiFID firms) are additionally in scope for the Senior Executive Accountability Regime (SEAR).

Businesses often find it difficult to embrace iterative ways of working without losing the broader vision during the process of making incremental changes. Agile project management can help.

The European Commission (EC) are committed to introducing a common corporate income tax system across the EU. The previous iterations - the Common (Consolidated) Corporate Tax base (CCCTB) 2011 and Common Corporate Tax Base (CCTB) are now withdrawn and replaced with the BEFIT Proposal. It remains to be seen if BEFIT will achieve the unanimous support required from Member States.

European Banking Authority (EBA) published final report on guidelines on Overall Recovery Capacity (ORC) in recovery planning on 19 July 2023, following a consultation paper in December 2022. The main change following the consultation is the implementation timeline for capital recovery options is now longer at 18-months (previously 12-months). These guidelines apply from 3 months after the publication date or 19 October 2023.

The Minister for Finance Michael McGrath has announced a plan to exempt foreign-sourced dividends from Irish corporate tax in a move toward the territorial regime of taxation. The proposed exemption will take shape over the coming months before being introduced in Finance Bill 2024, with effect from 2025.

This ECB paper is relevant to banks with derivatives and trading books; it explores the operational aspects and hidden costs associated with the wind-down of a bank’s trading book. An orderly wind-down of a trading book may be a recovery option or an element of a bank’s preferred resolution strategy. This paper details principles of ECB’s supervisory expectations with respect to both recovery and resolution planning.

As a result of Brexit, and particularly following the introduction of the UK’s Financial Services and Markets Act, there is a potential for increasing divergence between EU and UK financial services regulation.

On 28 April 2021, the Irish Government transposed IORP II (Institution for Occupational Retirement Provision), an EU directive on the activities and supervision of pension schemes, into law.

On 30 January, the Central Bank published Guidance for (Re)insurance Undertakings on Intragroup Transactions and Exposures following a consultation that ended in September 2022.

Green House Gas (GHG) emissions are classified into categories of Scope 1, Scope 2 or Scope 3. This is a way of grouping emissions between those created by the company and those created by its wider value chain.

The European Commission (EC) has adopted key initiatives, which aim to reduce compliance costs for large businesses operating across the European Union. The BEFIT proposal introduces a single set of rules to determine the tax base for large businesses that operate out of more than one Member State.

The Defective Concrete Products Levy (“DCPL”) was introduced in Finance Act 2022 and came into force on 1 September 2023.