Ireland conducts tax reform

19.07.2023 The Irish Government is consulting on new taxation measures that will apply to outgoing payments made in favor of related parties in countries included in the list of EU countries that do not cooperate with the EU or have low taxes.

The country declares its commitment to eliminate opportunities for base erosion and profit shifting in accordance with multilateral discussions in the OECD and the European Union. The National Recovery and Resilience Plan (NRRP) has recently been published, which sets out a number of commitments to combat aggressive tax planning. Corporate tax reforms were carried out for the same purpose.

Ireland has no plans to renegotiate any of the existing tax agreements. However, changes may have to be made to the administrative procedures, so that in cases where the proposed withholding taxes are applied to the payment, the tax will be withheld, and the recipient will have to claim a refund under the relevant contract. Outgoing payments will not be taxed if their amount is taken into account for the purposes of calculating the CFC fee or capital gains tax in accordance with the OECD Global Rules on Combating Erosion of the Tax Base.

Link to source: https://www.gov.ie/en/consultation/83f17-new-taxation-measures-to-apply-to-outbound-payments-feedbac...