Irish Owner Managed Businesses

Starting a Business

Tax is one of many considerations involved in starting a business in Ireland. If you are an early-stage start-up, Warren & Partners can provide advice in relation to the following:

• Corporation Tax filing and payment obligations for Irish companies
• The availability of Corporation Tax Start-Up relief, i.e. relief from Corporation Tax for the first three years of trading
• The optimal structure for your new business activities, including how your new business may interact with other established businesses
• The availability of the Research & Development (R&D) tax credit, i.e. 25% credit against Corporation Tax

There are many other commercial considerations to be taken into account when establishing a new business. Therefore, we aim to provide tax advice which considers other relevant commercial elements of starting a business.

Long-Established Businesses

Many Irish businesses develop and change their activities over time. For this reason, owners or shareholders may wish to establish a group structure or separate multiple trades into separate corporate entities.

Irish tax law provides tax relief for certain reorganisations, provided the relevant criteria are satisfied. Warren & Partners can provide advice in relation to the following:

• The most efficient options for implementing a reorganisation of a company or group structure
• The tax impact of such a reorganisation on all parties, i.e. the company(ies) and shareholders
• The availability of Capital Gains Tax (CGT) Share for Share relief on incorporation of a holding company
• The availability of relief from CGT and Stamp Duty on the transfer of a business to a separate corporate entity

We are also experienced in the area of retirement planning for business owners and shareholders. In particular, we can advise you on the availability of CGT Retirement Relief or Entrepreneur Relief on your disposal of the business, by way of liquidation or passing to the next generation.

Business Expansion

We have advised several clients on the tax implications of expanding their business outside of Ireland. In particular, we have assisted clients with the following:

• Identifying the optimal structure for the new foreign operation, e.g. establishing a new company or branch
• Considering how foreign profits from the new operation can be repatriated back to Ireland in a tax efficient manner
• Advising Irish companies and employees on the tax incentives available to Executives who relocate to set-up a new business abroad

In order to ensure that our clients business expansion is carried out in a timely and efficient manner, we liaise with local tax advisers, lawyers and tax authorities on their behalf. Through our work, we have developed rapport with tax advisers and lawyers in many jurisdictions such as the UK, Germany and the United States. In developing these relationships, we now have easy access to experienced tax and legal professionals in many jurisdictions.‍

Developments in Domestic and International Tax Law

Now more than ever, Irish businesses need to be cognisant of developments in international tax law, as well as domestic tax law.

One of the most important developments in this area is the extension of transfer pricing rules to Small and Medium-sized enterprises (SMEs). Previously, an exemption had been available to SMEs in applying transfer pricing rules, however, Finance Act 2019 removed this exemption.  

While the transfer pricing rules for SMEs have not been formally introduced into Irish law, it is an important issue that needs to be considered by Irish business owners. It should be noted that the rules on transfer pricing include a “look-back” provision which may require SMEs to review arrangements between group companies which have been in place for many years.

In addition to this, business owners with activities in other countries should be aware of the introduction of the Multilateral instrument or MLI. For further details, please see our article on the introduction of the MLI.

Most business transactions have tax implications for your business. We create the most tax-efficient structures for all your corporate transactions.

Tax advice cannot be given in isolation. By listening carefully and understanding your business, we deliver unique solutions that combine our expert tax advice and business insights.

If you would like to discuss any of the above matters in further detail with us, please contact a member of our Corporate Tax team (see details below).