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For over 20 years we have engaged the services of Parfrey Murphy (Chartered Accountants) to act as the external payroll provider to our Irish (HQ) operation…. In that period I can attest to Carbery having received an excellent service…. We have no hesitation in recommending Parfrey Murphy as payroll service providers.
Colm LeenSince 2006 we have outsourced our entire accounting function for our 3 locations in Ireland to Parfrey Murphy….We are delighted that we selected PM to carry out the above work…. They are extremely professional…. I would, without hesitation, recommend Parfrey Murphy to any potential outsourcing client.
Jackie GormanWe would like to thank Parfrey Murphy for providing us with invaluable information and assistance in the organisation of our tax returns…
Dermot HarringtonI first engaged Parfrey Murphy as my accountants in 2008. This has proven to be extremely helpful to my business. From carrying out my annual accounts and a number of other services during the year they have been both proficient and professional at all times
Andrew Mackin
Tax Advantages of Locating a Company in Ireland
Ireland has various advantages for international companies locating here.
Tax Rate
The corporation tax rate on trading income is 12.5%. The corporation tax rate on passive or investment income is 25%.
Research and development
Incremental research and development expenditure qualifies for a tax credit of 25% in addition to the normal deduction for research and development expenditure in the profit and loss account of the company.
Dividend withholding tax
An exemption from dividend withholding tax (at 20%) can be claimed by an Irish company in respect of dividend payments to certain types of shareholder including:
- Irish tax resident companies.
- Companies resident in the EU or tax treaty countries not under the control of Irish residents.
- Individuals resident in the EU or tax treaty countries.
- Non resident companies ultimately controlled by residents of EU member states or tax treaty countries.
Tax credits
An excess tax credit arising in respect of a foreign dividend can be set against corporation tax arising on other foreign dividends. Surplus tax credits may also be carried forward to be set against corporation tax on foreign dividends paid to the Irish company in future years.
Capital gains tax exemption
Ireland is an excellent holding company location. Irish tax legislation provides for an exemption from capital gains tax for Irish tax resident companies which make disposals from substantial shareholdings (at least 5%) in trading subsidiaries tax resident in an EU or tax treaty country (including Ireland) and a trading company or a member of a “trading group”.
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Related Article: 12 Tax Planning Ideas for Companies
Please call Noel Murphy today on 021-4310266 if you need further information on tax advantages of locating a company in Ireland or a free consultation.
