sep 19 2010

Irish Holding

Fidelitas7 @ 15:58

Irish Holding Company

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Topic Details
Establishing HoldCo  
Are advance rulings available? Yes
Are there restrictions on activities? No
Are there substance requirements? No
Is capital duty payable? No
Is there a special tax regime for holding companies? Yes
Is there CFC or equivalent legislation? No
Number of jurisdictions with active income tax treaties (minimum) 48
What is the effective corporate tax rate? 12.5%/25%
Tax Treatment of Disposal of HoldCo  
Is any tax payable in HoldCo country on disposal of HoldCo shares by a nonresident corporate shareholder? No
Tax Treatment of Payments by HoldCo  
Dividends: What is the (non-treaty / treaty) rate of withholding tax on dividends paid to nonresidents? Non-treaty: 20%; treaty: 0%; EU: 0%
Interest: Are there thin cap limits or other restrictions on interest deductibility? No
Interest: Is interest on loans to acquire subsidiaries deductible against HoldCo’s profits? Yes
Interest: What is the (non-treaty / treaty) rate of withholding tax on interest paid to nonresidents? Non-treaty: 20%; treaty: 0%-20%; EU: 0%
Liquidation payments: Is there withholding tax on liquidation payments? No
Taxation of HoldCo Income  
Dividends: Does the foreign subsidiary have to meet any substance requirements? No
Dividends: Does the foreign subsidiary have to pay tax locally? No
Dividends: How are dividends taxed? Exempt (domestic dividends)/ Taxable with credit for foreign tax
Dividends: What is the required holding period? N/A
Dividends: What is the required percentage ownership? 5%
Gains on disposal of participations: Are capital losses deductible? Only if the CGT participation exemption does not apply
Gains on disposal of participations: Does the foreign subsidiary have to meet any substance requirements? Yes
Gains on disposal of participations: Does the foreign subsidiary have to pay tax locally? No
Gains on disposal of participations: How are gains on the sale of a subsidiary taxed? Exempt for subsidiaries resident in EU or treaty countries; otherwise taxable
Gains on disposal of participations: Is relief available for the write-down in value of subsidiaries? Only if the CGT participation exemption does not apply
Gains on disposal of participations: What is the required holding period? 12 months
Gains on disposal of participations: What is the required percentage ownership? 5%
Is joint taxation for groups available? No