The Double Irish regime has been abolished for new companies, with grandfathering provisions for existing structures until the end of 2020. With further improvements to our IP regime there are several alternative structures which provide the same benefits to US groups, making Ireland even more compelling.
Ireland has introduced significant changes to its corporate tax regime, aimed at both enhancing our global reputation for transparency and also further enhancing our attractiveness as a location for knowledge based activities and IP generally.
The abolition of the Double Irish structure was well flagged in advance; initial reaction suggests that it will not lead to a flight of capital from Ireland. The six year deferral for existing structures should provide adequate time for groups to restructure their existing Intellectual Property (IP) arrangements in an appropriate manner.
Importantly, the Budget statement provided a clear roadmap for the future of Ireland’s FDI offering, making a long-term compelling case for overseas investors to locate activities here.