A lot of companies are finding luck in Ireland’s low corporate tax. Over the years, Ireland has attracted many foreign investments and has also benefited from its low corporate tax requirements. Ireland also signed double taxation treaties with most industrial nations in order to prevent the duplications of companies' taxes.
The upside to a double taxation treaty is that it protects companies who are registered in more than one country and might be liable to pay the tax in both countries from the same income. Double Taxation Treaties prevent such scenarios, thus allowing countries who are registered in more than one country to simply pay the tax in one country. The terms and conditions of the agreement will determine the country which should collect the tax.
To date, Ireland signed Double Taxation Treaties with over 74 countries and 73 of them are in full effect. These agreements apply to the following aspects of tax in Ireland:
- Income Tax
- Corporation Tax
- Universal Social Charge
- Capital Gains Tax
- Universal Social Charge
Any foreign company leaving Ireland is entitled to pay any pending taxes from the previous year and for the year of departure. You can file a tax return after departure or earlier. It should include all the details about your income and deductions made from the beginning of the tax year in the year of departure until the date of the final departure. In the case that a departure is made before the commencement of the tax year, the previous taxes would be applied. However, if this will result in an overpayment, you can claim a refund. The tax clearance certificate is not required upon leaving Ireland.
For more specific details about Ireland and your country agreement, we recommend you to visit Irish Tax and Customs relevant authority Revenue.
Note, that although your country doesn’t have a double taxation agreement with Ireland, it’s possible to get relief from the double taxation. There is a qualification criterion for such cases, if you qualify, the overseas tax may be deducted as an expense. If your tax liability in one country is lower than that of Ireland, you are entitled to pay the difference to the Irish Revenue Commissioners. If you are not sure about your tax accountability in your home country, you can contact the consulate in Ireland or your nearest embassy. The United States is the only country that taxes its nonresident citizens on income earned abroad.
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