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• New tax laws make Ireland 'more attractive'

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  Helena Deane    Group moderator

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  New tax laws make Ireland 'more attractive'

  The introduction of new legislation to regulate transfer pricing will make Ireland more attractive to multinationals, according to international tax experts speaking at an event held by William Fry Tax Advisors, the Irish member firm of Taxand.
  
  Over 100 business people who attended this morning's William Fry breakfast briefing on transfer pricing heard how the introduction of the new Transfer Pricing Regime will affect multinationals operating in Ireland or looking to locate in Ireland.
  
  Transfer pricing refers to the prices at which related entities (e.g. a parent company and its subsidiary) set the price that they pay each other for goods, services, the use of money, intangible assets, and similar transactions. The 2010 Finance Bill introduced new regulations for transfer pricing that will take effect from the January 1st 2011, and the legislation will cover domestic or international trading transactions entered into between associated entities.
  
  [b]The new rules will bring Ireland in line with its main trading partners, the US and the UK, but excludes SMEs, as the thresholds to meet the small or medium-sized test are that the overall enterprise must have less than 250 employees and either sales of less than E50m annually or assets of less than E43m annually [b/]
  
  Speaking at today's breakfast briefing, Eamonn O'Dea, Assistant Secretary, Revenue Commissioners, said: "Transfer pricing is a fact of life for modern multinational business. The arm's length principle (ALP), whereby the amount charged by one related party to another for a given product must be the same as would be charged between unrelated parties, complements our tax policy here in Ireland and our approach in terms of inward investment. The introduction of a Transfer Pricing Regime codifies and clarifies our existing policies and it is consistent with Ireland's long-standing support for ALP as the standard that should be applied uniformly across countries."
  
  Also speaking this morning, Justin Smith, Senior Director, Taxand US, said, "When a multinational corporation is looking at whether or not to locate their business in Ireland, certainty is a big factor. The new provisions regarding transfer pricing add some certainty to the equation and taking steps to be more in line with what other jurisdictions are doing can add credence to a multinational corporation's long term perspective and make Ireland a more attractive location."
  
  (BizWorld)
  This post was modified on 25 Feb 2010 at 10:20 pm.
  • 25 Feb 2010, 10:20 pm
  Helena Deane wrote: > The introduction of new legislation to regulate transfer pricing will > make Ireland more attractive to multinationals, according to > international tax experts speaking at an event held by William Fry > Tax Advisors, the Irish member firm of Taxand. > > Over 100 business people who attended this morning's William Fry > breakfast briefing on transfer pricing heard how the introduction of > the new Transfer Pricing Regime will affect multinationals operating > in Ireland or looking to locate in Ireland. > > Transfer pricing refers to the prices at which related entities (e.g. > a parent company and its subsidiary) set the price that they pay each > other for goods, services, the use of money, intangible assets, and > similar transactions. The 2010 Finance Bill introduced new > regulations for transfer pricing that will take effect from the > January 1st 2011, and the legislation will cover domestic or > international trading transactions entered into between associated > entities. > > [b]The new rules will bring Ireland in line with its main trading > partners, the US and the UK, but excludes SMEs, as the thresholds to > meet the small or medium-sized test are that the overall enterprise > must have less than 250 employees and either sales of less than E50m > annually or assets of less than E43m annually [b/] > > Speaking at today's breakfast briefing, Eamonn O'Dea, Assistant > Secretary, Revenue Commissioners, said: "Transfer pricing is a fact > of life for modern multinational business. The arm's length principle > (ALP), whereby the amount charged by one related party to another for > a given product must be the same as would be charged between > unrelated parties, complements our tax policy here in Ireland and our > approach in terms of inward investment. The introduction of a > Transfer Pricing Regime codifies and clarifies our existing policies > and it is consistent with Ireland's long-standing support for ALP as > the standard that should be applied uniformly across countries." > > Also speaking this morning, Justin Smith, Senior Director, Taxand US, > said, "When a multinational corporation is looking at whether or not > to locate their business in Ireland, certainty is a big factor. The > new provisions regarding transfer pricing add some certainty to the > equation and taking steps to be more in line with what other > jurisdictions are doing can add credence to a multinational > corporation's long term perspective and make Ireland a more > attractive location." > > (BizWorld)