Investors into European Union (EU) countries and countries where Ireland has signed a double tax treaty can save tax by using an Irish holding company for their investments
Ireland has become a very attractive place to locate an Irish holding company. Holding companies own shares in other companies. The companies the shares in are called ‘subsidiaries’.
The main advantages to having a holding company structure in Ireland are:
- No Capital Gains Tax for holding companies when you sell shares in a subsidiary company.
- No withholding tax on the payment of dividends by the holding company to someone else in an EU country or tax treaty countries.
- Interest on loans to buy shares in a subsidiary company can be deducted from the taxable income of the holding company
- Favourable tax treatment on the receipt of dividends from a subsidiary.
- There is a large tax treaty network and access to EU Parent-Subsidiary Directive which covers the area of parent/subsidiary relations.
- A non-Irish company can avail of low corporate tax rates for both trading operations and investment activities.
The holding company laws together with other attractions such as the economic and telecommunications infrastructure, the English speaking population and membership of the EU make Ireland an appealing destination in Europe for companies.
One of the major advantages that Ireland has over other jurisdictions is the ability to combine the holding company with trading activities such as Shared Service Centre activities, Group Procurement, Treasury and Research & Development.
Please contact us at 01 283 4123 or firstname.lastname@example.org for further information.