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, plus Irish income tax (generally by way of withholding, though this is not the case with Irish-source rental profits) on certain Irish-source income.
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.
A fixed place of business includes (but is not limited to) a place of management; a branch; an office; a factory; a workshop; an installation or structure for the exploration of natural resources; a mine, oil or gas well, quarry, or other place of extraction of natural resources; or a building, construction, or installation project. A company is not, however, regarded as having an Irish PE if the activities for which the fixed place of business is maintained or which the agent carries on are only of a preparatory or auxiliary nature (also defined in the statute).
See the Other taxes section for a description of the exit tax rules.