Factsheets

Navigate the changes in EU tax regulations with BEFIT and Transfer Pricing proposals, aiming for harmonisation, fair taxation, and reduced compliance burdens.

Irish Revenue published a new tax and duty manual Part 35a-01-05 – Requests for TP Documentation (‘TDM’) in December 2023. The TDM serves as a policy document to ensure that the Transfer Pricing Audit Branches (‘TP Audit Branches’) take a consistent approach when requesting TP documentation from taxpayers for risk assessment. Read our latest insights and stay informed with the latest Transfer Pricing updates.

As a component of the European Union’s (EU) aspirations for climate neutrality, CBAM, effective from October 1, 2023, will have an impact on the importation of goods in specific sectors with high carbon emissions into the EU.

On 22 December 2023, the Irish Government published SI 650 and SI 651 of 2023, two statutory instruments transposing into law the EU CESOP Directive that introduces new record-keeping and reporting requirements for Payment Service Providers (PSPs).

Finance Bill (No. 2) 2023 introduced an amendment to the collection and reporting requirements of share option related taxes. The taxation of a gain realised on the exercise, assignment or release of share options has moved from an individual self-assessment system to a PAYE real-time payroll withholding system.

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.

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iterations - the Common (Consolidated) Corporate Tax base (CCCTB) 2011 and Common Corporate Tax Base (CCTB) are now withdrawn and replaced with the BEFIT Proposal.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.

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.

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.

Throughout 2023, the OECD Inclusive Framework has continued its work on the development of the Pillar Two Global anti-Base Erosion Rules in advance of the introduction of the rules on 31 December 2023.

Employment Tax Updates covering: Enhanced Reporting Requirements (ERR), Small Benefit Exemption, Shares Options – Revenue’s Compliance Focus and PAYE Revenue Audits

Finance Act 2022 introduced the requirement for employers to notify Revenue of certain payments made to employees known as ‘reportable benefits’. The introduction of this reporting requirement is subject to a commencement order; however, the target implementation date is 1 January 2024.

The introduction of Pillar Two brings unprecedented changes to the international tax landscape, the likes of which haven’t been seen for decades. The rules will create a fundamental shift in the way certain groups are taxed as well as an additional global compliance and reporting obligation for those within scope of the rules.

The Revenue Commissioners (“Revenue”) first introduced the Special Assignee Relief Programme (SARP) in 2012 as a method for encouraging companies to relocate or assign their key employees to work in Ireland. Where certain conditions are satisfied, 30 percent of taxable employment income over €100,000 is disregarded for income tax purposes. This programme can result in significant tax savings for key employees.