On 5 September 2018, the Department of Finance issued Ireland's Corporation Tax Roadmap (the "Roadmap") setting out the next steps in implementing changes required at EU level under the Anti-Tax Avoidance Directives ("ATAD") and the OECD's Base Erosion and Profit Shifting project. The Roadmap confirms the timing of these key changes.
The key changes confirmed in the Roadmap are set out below. Our extended client briefing is available here and you can access the complete Roadmap here.
Key Changes - Implementation of ATAD
The implementation of ATAD comprises five elements:
Controlled foreign company rules
Effective date: 1 January 2019 Ireland will adopt an Option B approach Consultation on text of draft rules expected before the end of September 2018 2. General anti-abuse rules
No change required under Irish law 3. Interest limitation rules
Effective date: may take effect earlier than 1 January 2024 Consultation on implementation of Irish interest limitation rule will commence during the third quarter of 2018 4. Anti-hybrid rules
Effective date: 1 January 2020 (reverse hybrid rule will take effect on 1 January 2022) Consultation on implementation of Irish anti-hybrid rules will commence during the third quarter of 2018 5. Exit tax
Effective date: 1 January 2020 Rate to be confirmed Key Changes - Transfer Pricing
The 2017 OECD Transfer Pricing Guidelines will be incorporated into Irish law and will apply from 1 January 2020. Further consultation is expected on broader changes to the Irish transfer pricing regime during 2019.
Key Changes - Moving to a Territorial Regime