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Choose
Ireland
For business.
For living.
#chooseireland
Choose
Ireland
For business.
For living.
Cliffs of Moher
WELCOME TO IRELAND...
Ireland is a great place for business and a great place to live. Whether you
are a dynamic start-up seeking guaranteed access to a European market
of 500 million people or an established business looking to meet high
performance objectives, Ireland delivers.
However, don’t just take our word for it – the list of successful companies
that have chosen Ireland proves that smart decision makers value our probusiness policies, exceptional people and reputation as a highly attractive
place to work and live. We’re also famous for our warm welcome and ‘can
do’ attitude, so please get in touch and we’ll make sure you get the most
out of your decision to choose Ireland.
Shaun Murphy
Managing Partner, KPMG in Ireland
Ireland is the location of choice for successful businesses. A winning
combination of talented people, attractive business taxes, commitment to
the EU and an exceptional track record sets Ireland apart.
We’re home to entrepreneurs, innovators and business leaders in every
sector. They choose Ireland for many different reasons but they each
have one thing in common – a desire to succeed in a business friendly
European environment that’s great for business and great for living. We
look forward to working with you and telling you about how - if you choose
Ireland - our KPMG teams can help your business succeed.
Anna Scally
Partner, International Tax
Head of Technology and Media
KPMG in Ireland
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IRELAND DELIVERS...
Guaranteed access to an EU market of 500 million people
A proven pro-business environment
A transparent, consistent and certain tax environment
A highly competitive Corporation Tax rate of 12.5%
An English speaking, committed member of the EU and Eurozone
A stable political environment and legal system
A thriving R&D environment and a strong national research ecosystem
A track record of delivering for international investors
Ireland - one of the best
countries in the world for
doing business.
Ireland is the data capital
of Europe
Forbes
Google
One of the top 10 most
innovative countries in
the world.
2016 Global Innovation Index
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Ireland ranks 7th in
the world for
competitiveness
IMD World Competitiveness
Yearbook 2016
No.1 destination in
the world for inward
investment by quality and
value of investment project.
IBM Global Location Trends
Report 2016
THE CHOICE OF WINNERS
Ireland is the location of choice for:

9 of the Top 10 global ICT corporations

10 of the Top 10 ‘Born on the Internet’
companies

9 of the Top 10 global pharmaceutical
corporations

13 of the Top 15 global medical
technology companies

15 out of 25 of the world’s leading
Financial Services firms

14 of the top 15 aircraft lessors

Ireland is the largest exporter of
software in the world
Choose
Ireland
For business.
For living.
Source: IDA
Christ Church
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A HIGHLY ATTRACTIVE CORPORATE TAX REGIME
Tax Certainty
Ireland has consistent, transparent, long term
tax policies.
12.5% Corporation Tax Rate
The lowest rate in Western Europe – applicable on
trading income of Irish resident companies and Irish
branches of foreign companies.
Excellent Tax Treaty Network
72 tax treaties including US, UK, Australia, China,
Canada, Japan and Russia. Facilitates reduction in foreign
taxes and withholding taxes on cross border payments.
R&D Tax Credit
25% Tax credit available on qualifying R&D spend includes staff salaries and related costs and other
direct R&D costs. The credit is additional to the 12.5%
deduction available for R&D spend. The credit reduces
corporation tax or is refundable over 3 years where the
company is loss making.
The benefit can be taken ‘above the line’ i.e. before tax.
Further credits may be available on buildings used for
R&D.
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Knowledge Development Box
A 6.25% rate may apply if undertaking R&D in Ireland
and developing patents or similar assets or copyrighted
software.
IP Allowances
Tax depreciation allowances are available on the
acquisition of a wide range of intangible assets including
patents, software and registered designs.
Start-up Relief
There is a 3 year exemption for new businesses where
profits are less than €320k, with marginal relief where
profits are below €480k.
25% Tax Rate
Applies to passive and non-trading income.
Choose
Ireland
For business.
For living.
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SUPPORTING A WINNING ENVIRONMENT
FOR INNOVATION
Allowances for
acquiring IP
R&D
Tax Credit
12.5%
Tax Rate
R&D
Grant Aid
Knowledge
Development Box
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Ireland
For business.
For living.
Giant’s Causway
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Choose
Ireland
For business.
For living.
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LIVING & WORKING IN IRELAND
 Ireland is a fully committed member of the
European Union
 According to the Economist Intelligence Unit’s
‘where-to-be-born’ index, Ireland scores ahead of
the US, Germany, France and the United Kingdom
 Expats are also attracted by a beautiful unspoilt
environment, vibrant social and cultural scene and
ease of access to other countries
 Ireland is one of very few countries with the ability to
pre-clear US customs and immigration at the point of
departure to the US
Visa & Permits
 For non EEA nationals, and depending on personal
circumstances, entry visas and employment permits
may be required
Start-Up Entrepreneur Programme:
– This enables non EEA nationals with an innovative
business idea to secure residency in Ireland for the
purposes of developing their business
– Initial funding of €50,000 is required and €30,000
per additional principal involved in the business
Employment Permits:
– Non EEA nationals (with a number of exceptions),
must have employment permits in order to take
up employment in Ireland. There are a number
of different permits depending on personal
circumstances and these include:
–
–
–
–
Critical skills permit
Inter-company transfer
General employment permit
Contract service provider
Investor Programme:
– This is available to non EEA nationals and their
families who commit to an approved investment
in Ireland. The programme is designed to facilitate
participants in establishing a permanent relationship
with Ireland.
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Choose
Ireland
For business.
For living.
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OUR SKILLED WORKFORCE
The Irish workforce is highly skilled and adaptable.
30% of students are currently enrolled in science and
engineering courses, and another 21% are currently
enrolled in social sciences, including business and law.
Attainment in higher education is high among 25-34
year olds in Ireland at 52%, which is 10% above the
OECD average.
Furthermore, Ireland is part of the EU open labour market
thus ensuring that your Irish based business can benefit
from a wide pool of European talent.
Ireland also ranks number 1 in the IMD Competitiveness
Yearbook 2016, for flexibility and adaptability of our
people when faced with new challenges, finance skills,
and global attitude.
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Ireland is also increasingly multilingual, with a wide range
of skilled people able to converse fluently in languages,
in addition to English.
Each year Ireland attracts a significant influx of foreign
workers eager to work in a dynamic and enjoyable
environment with a pro-European and diverse outlook.
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Ireland
For business.
For living.
O’Connell Street
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PERSONAL TAXES
Employee income tax and social security is accounted
for through the payroll withholding tax system. This is
known as the PAYE system.
A typical compensation package might include: salary,
bonus, stock-based-compensation (Stock options, RSU’s,
ESOP), if appropriate and other benefits.
The Irish tax year is aligned with the calendar year. The
rates of personal tax and social security for an employee
in Ireland for 2017 are set out below:
Reliefs and Incentives
There are a number of reliefs and incentives which can
reduce the personal income tax burden. These include:
Tax/Levies
Income tax
Rate
20% up to €33,800*
40% thereafter
Social Security Employee: 4% on total earnings
Employer: 10.75% on total earnings
Universal
€0 – €12,012:
0.5%
Social Charge €12,013 – €18,772: 2.5%
(USC)**
€18,773 - €70,044:
5%
€70,045 upwards:
8%***
Capital gains
33%
tax
Entrepreneur’s Relief: 10% on gains
up to €1 million
(after an annual exemption of €1,270)
Gift/
33%
inheritance tax (subject to certain exempt thresholds)
* The 20% tax band is increased depending on marital status.
Various tax credits and reliefs are also available depending on personal
circumstances.
** Individuals with income lower than €13,000 are exempt from USC.
*** 11% > €100,000 for self employed.
Companies are required to operate a payroll withholding
tax system (PAYE) in respect of cash payments and
benefits in kind, e.g. medical insurance and company
cars provided to employees. Certain equity based
compensation is also processed through the PAYE
system.
Entrepreneurs Relief
First €1m of capital gains can avail of a reduced 10%
rate of CGT. This requires the entrepreneur to own at
least 15% of the equity of the company and have been
involved on a full time basis for 3 years.
Employment and Inventive Investment (EII)
Individuals can secure personal income tax relief on
investments of up to €150,000 per annum in qualifying
companies. Tax relief equal to 40% of the investment is
available, 30% upfront and the remaining 10% after year 3.
Special Assignee Relief Programme (SARP)
Tax relief may be available to assignees transferred to
Ireland. SARP operates by reducing taxable employment
income over a threshold of €75,000 by 30%.
Where employees are required to perform duties outside
of Ireland, the relief will still apply.
The SARP relief is available for a maximum of 5
consecutive tax years.
Employees who qualify for the regime can also recover
the cost of one return trip for their family to their home
country from their employer tax-free and can also have
school fees (of up to €5,000 for each child) paid by the
employer tax-free.
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Ireland
For business.
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Inch Beach
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PERSONAL TAXES
continued
Foreign Earnings Deduction
A Foreign Earnings Deduction may be available for
employees who are required to travel to work in emerging
markets, i.e. Brazil, Russia, India, China and South Africa,
along with a growing number of other African, Middle
Eastern and Asian countries.
The relief provides a tax refund for the relevant
employee where they spend 30 full days working in the
relevant countries in a tax year and meet certain other
conditions.
The maximum annual deduction for a relevant employee
from taxable income is €35,000.
Remittance Basis
Non-Irish domiciled individuals who are resident in
Ireland are taxable in Ireland on Irish source income.
Foreign income is only taxable to the extent it is remitted
to Ireland.
 Employer contributions to Revenue approved
occupational pension schemes. This exemption
can be extended to foreign employer pension
schemes in certain circumstances;
 Employee contributions to Revenue approved
occupational pension schemes are deductible for
income tax purposes, subject to certain income and
age related limits. There is no deduction for PRSI and
the Universal Social Charge;
 It is possible to obtain Revenue approval in respect of
certain share schemes, e.g. Approved Profit Sharing
Schemes and SAYE Share Option Schemes which can
result in tax savings for employees.
Tax efficient income and benefits
There are a number of other tax relieving provisions
available to employees coming to work in Ireland,
including the following:
 Relocation expenses such as shipping, storage costs
and costs associated with the purchase of a new
home (e.g. stamp duty, solicitors fees etc,) can be
reimbursed tax free;
 Accommodation and subsistence costs for the first 12
months of an assignment that is expected to last less
than 24 months can be paid or reimbursed tax free;
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Choose
Ireland
For business.
For living.
16
SETTING UP YOUR BUSINESS
Company Set Up
Before you start doing business in Ireland, you need
to decide if you are going to operate through a branch
or company. Most fast growing businesses choose to
operate through a company.
Irish companies are registered with the Companies
Registration Office (CRO), and can be formed having
public or private status, and with limited or unlimited
liability. A company must have at least one shareholder,
which may be an individual or a corporate entity, along
with a minimum of two directors in most cases, or one
director and secretary in certain cases. At least one of
the directors must be resident in the EEA, except where
there is a bond in place to the value of €25,395.
The incorporation of a company can be completed in a
number of ways, with the most efficient being online,
using a specific application process. Under this online
scheme, where standard constitutional documents
are used, the CRO guarantees to issue a Certificate of
Incorporation within 5 working days.
For entrepreneurs looking to come to Ireland to start
their business, assistance is provided by Enterprise
Ireland (www.entreprise-ireland.com). Supports are
available through the Competitive Start Fund (CSF)
and High Potential Start-up (HPSU) funding, mentor
programmes and workshops. In addition, Enterprise
Ireland has a €10m fund to attract entrepreneurs to
relocate to Ireland and establish ambitious start-ups
focused on international markets.
Financing
Aside from equity and bank financing, Ireland has a
vibrant angel and Venture Capital (VC) environment.
Levels of angel and VC funding have increased
significantly in recent years, particularly in financing and
developing high potential innovative companies. The Halo
Business Angel Network (HBAN – www.hban.org) and
the Irish Venture Capital Association (IVCA – www.ivca.ie)
are important representative bodies of such angel and VC
funding in Ireland.
State Support
IDA Ireland provides advice, assistance, grant aid and
incentives to international companies coming to Ireland.
A wide range of supports are available from capital,
employment and R&D grants, to support recruiting talent
and finding office space. For international companies
coming to Ireland, IDA Ireland will be the principal body
responsible for providing assistance.
Further information is available on www.idaireland.com
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Ireland
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Convention Center
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HOW KPMG CAN HELP
We understand the pressures faced by businesses of
every type and size when locating to a new jurisdiction.
We’re the adviser of choice for a wide range of startups and established business who choose Ireland. Our
approach is based on simplicity and total commitment
and includes support and advice on:
 Company set-up and tax registration
 Fundraising
 Corporate and operating structures
 Maximising group tax benefits and minimising
group tax costs
 Shareholder and employee tax matters
 Intellectual Property planning
 Expat tax matters
 R&D tax credits
 Routine compliance matters (legal & tax)
 VAT and customs duty
 Outsource accounting
 Accounting advice and assistance
 Statutory & US GAAP Audit
What’s more, we can draw on the experience of
our colleagues globally.
For further information, please contact one of
our team or visit www.kpmg.ie
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YOUR KPMG IRELAND CONTACTS
ANNA
SCALLY
EOIN
CASEY
Partner, International Tax
Head of Technology and Media
KPMG in Ireland
Associate Director, International Tax
Irish Tax Desk
KPMG in the US
Tel: +353 1 410 1240
Email: [email protected]
Mobile: +353 87 050 4467
Email: [email protected]
Mobile: +1 267 408 4539
Email: [email protected]
ORLAITH
DE VALERA
AMY
O’TOOLE
Manager, International Tax
KPMG in Ireland
Manager, International Tax
KPMG in Ireland
Tel: +353 1 700 4245
Email: [email protected]
Tel: +353 1 700 4774
Email: [email protected]
AISLING
LONERGAN
Associate Director, Legal Services
KPMG in Ireland
Tel: +353 1 700 4487
Email: [email protected]
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Ireland
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Publication Date: November 2016. (1943)