Ireland

As a general rule, a company incorporated in Ireland is regarded as Irish tax resident. However, if, under the provisions of a double tax treaty (DTT), an Irish incorporated company is regarded as tax resident in another territory, the company will not be regarded as Irish tax resident.

In addition, a company will be regarded as Irish tax resident if it is managed and controlled in Ireland, irrespective of its place of incorporation.

Permanent establishment (PE)

Non-resident companies are subject to Irish corporation tax only on the trading profits attributable to an Irish branch or agency and rental profits arising in Ireland. Non-resident companies may also be liable to Irish income tax (generally by way of withholding) on certain Irish-source income.

Irish domestic legislation imposes corporation tax on trading profits of a branch or agency in Ireland. This concept of ‘branch or agency’ overlaps significantly with (though is not identical to) the concept of a PE. In the case of a company that is resident in a DTA jurisdiction, the company’s branch trading profits may be excluded from the charge to Irish tax unless they are attributable to a PE in Ireland.

Subject to the terms of the relevant DTT, a non-resident company will have a PE in Ireland if:

• it has a fixed place of business in Ireland through which the business of the company is wholly or partly carried on; or
• an agent acting on behalf of the company has and habitually exercises authority to do business on behalf of the company in Ireland.

Exit tax

See the Other taxes section for a description of the exit tax rules.