The client is a large UK-based supplier of Data Centre and Financial sector critical power solutions.
The client was referred to us by their specialist VAT advisors in UK. They had been engaged to design, manufacture, deliver and install the UPS system at a data centre in Ireland. While the client was to engage Irish-subcontractors for the installation they also intended sending employees from the UK to carry out testing and commissioning.
We were asked to advise the client on any Irish tax compliance obligations arising for the client.
Our work included:
- Reviewing the contract and advising on corporation tax and relevant contracts tax (RCT) registrations in Ireland
- By establishing the length of time the UK-based employees would be on-site in Ireland over the course of the project and then advising the client on its payroll obligations
- Liaising with the client’s internal HR/payroll department and external UK accountants to provide clear advices on what tax exemptions might be available and what certificates of coverage were necessary
- Registering the client for the relevant taxes and filed all Irish tax compliance returns (corporate tax, payroll, relevant contracts tax and VAT) with Irish Revenue
- Reviewing initial invoices issued/received by the client to ensure they were compliant and that the correct rate of VAT and RCT had been applied
- Assisting the client with getting Personal Public Services (PPS) numbers for the relevant employees
- Liaising with Irish Revenue to reduce the rate of RCT on payments to the client to 0%
From the outset of the project, the client was clear on its tax compliance obligations in Ireland and was able to structure employees days on-site in Ireland to minimise its Irish payroll obligations.