Budget 2013 Update

Author:Matheson Ormsby Prentice's Tax Group

The Irish Government yesterday announced its budget for 2013.  The budget did not contain many provisions of significance to our international clients.  We have summarised below the main points of relevance for international companies and financial institutions doing business in and through Ireland. 1. 12.5% corporation tax rate The Irish Government confirmed that it "remains 100% committed to maintaining the 12.5% corporation tax rate."  The Minister for Finance remarked that "even though this commitment has been stated numerous times, it is worth repeating so that there can be no doubt." 2. Real Estate Investment Trusts (REITs) The Government has announced the future introduction of REITs in Ireland.  The REITs will be listed investment companies, used to diversify investment in real estate.  The REITs will be exempt from corporation tax on their qualifying profits, and will have an obligation to distribute the majority of their income each year.  The Minister said that he hoped this would permit the financing of property transactions in a more risk-diversified manner. Further details regarding the Irish REIT structure should become available over the coming months. 3. FATCA It was confirmed yesterday that Ireland is now one of the...

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