Crowleys DFK Partner and Chairman of the Ireland Malaysia Business Association, Vincent Teo, had the pleasure of meeting Minister Richard Bruton, Minister for Education and Skills, and Ambassador Eamon Hickey, Irish Ambassador to Malaysia, at Enterprise Ireland’s business breakfast in Kuala Lumpur on Thursday, 20th September.
Minister Bruton addressed the local network of business and education leaders for Enterprise Ireland’s business breakfast as part of his five day education and trade mission to Malaysia and Indonesia.
“I am delighted to have the opportunity to greet an Irish Minister in my home country,” Vincent commented, “Congratulations to Ambassador Hickey and Enterprise Ireland on hosting a successful business breakfast.”
Vincent commented, “I am very grateful to have had the opportunity to meet Ambassador Eamon Hickey in the Embassy and for his continued support to our efforts in promoting bilateral trade relations between Ireland and Malaysia.”
“We plan to reach out to the relevant Ministries in Malaysia in the hope of hosting a ministerial visit to Ireland in the near future,” stated Vincent.
The objective of the Irish Malaysia Association is to support bilateral business links between Ireland and Malaysia. Crowleys DFK is a patron member of the IMA and is dedicated to supporting its development.
https://www.crowleysdfk.ie/wp-content/uploads/VT-LinkedIn.jpg26821412Alison Bourkehttps://www.crowleysdfk.ie/wp-content/uploads/crowleysdf-chartered-accountants-1.pngAlison Bourke2018-09-13 14:45:102019-06-12 11:48:52Crowleys DFK Partner meets the Irish Ambassador to Malaysia
Edward Murphy, Partner and Head of Foreign Direct Investment and Siobhán O’Hea, Partner, Tax Services provide an insight into how Crowleys DFK can help foreign owned companies to set up operations in Ireland.
For more information on our Foreign Direct Investment service offering, please contact Edward Murphy.
https://www.crowleysdfk.ie/wp-content/uploads/Overview-video-image.jpg543964Alison Bourkehttps://www.crowleysdfk.ie/wp-content/uploads/crowleysdf-chartered-accountants-1.pngAlison Bourke2018-07-19 11:51:332019-11-05 10:10:07Crowleys DFK launches Overview Video on Foreign Direct Investment Service Offering
Crowleys DFK are currently running a series of CPD accredited VAT on Property briefings for solicitors in Cork and Dublin. The purpose of the seminars, presented by Tax Partner Siobhán O’Hea, is to raise awareness of common VAT pitfalls on property transactions.
VAT on property can be a complicated area but it is vital to thoroughly investigate the potential VAT impact before embarking on any property transaction, Siobhán advises.
“We are seeing problems crop up in many different situations. For example, more people have got involved in letting property in recent years and this is an area where VAT issues can often arise. While lettings are exempt from VAT, landlords can opt to tax the letting and charge 23% VAT on the rent. This can be advantageous if the landlord wants to claim repayment of VAT incurred on the acquisition or development of the property, however it is important to be aware that there are restrictions. For example, you cannot opt to tax the letting if the property is occupied for residential purposes or occupied by the landlord or a person connected with the landlord.
“On sales of commercial property, liability to VAT depends on whether the property is considered ‘new’. There are Revenue rules governing the definition of ‘new’ for property VAT purposes. Generally, the supply of older properties is exempt from VAT however, in some circumstances, the vendor and purchaser may jointly opt to have the transaction subject to VAT.
“Where property is supplied in connection with an agreement to develop the property, these transactions are always taxable.
“In our experience, there are VAT pitfalls in many every day property transactions and these can prove very costly for clients. This is why Crowleys DFK are running these seminars for solicitors. It’s an opportunity to raise awareness and to help ensure common mistakes are avoided,” Siobhán concluded.
For further information on Crowleys DFK VAT briefings, please get in touch.
Choosing an appropriate location for a company’s registered office arises under the Companies Act 2014. It is the duty of each director and secretary of a company to ensure the requirements for a Company’s registered office are complied with.
Ireland has a well established reputation as a friendly environment for innovative businesses. Government strategy, set out in Innovation 2020, is to nurture excellent research in strategically important areas that benefit the economy and society. A key ambition is to increase investment in research and development and, to this end, Government works with, and funds, various programmes through agencies such as Enterprise Ireland, Science Foundation Ireland, IDA Ireland, InterTrade Ireland and the Higher Education Authority. In addition, research and development tax incentives are available to help develop business and attract high quality jobs. Two of the most important of these incentives are the Research & Development Tax Credit regime and the Knowledge Development Box.
R&D Tax Credit
If your company spends money on research and development activities, you may qualify for a Research and Development (R&D) Tax Credit. This scheme is administered by the Irish Revenue Commissioners and is open to companies who are liable to Irish tax and carrying out qualifying R&D activity in Ireland and/or the European Economic Area (EEA).
The credit is calculated at 25% of qualifying expenditure and is used to reduce your company’s liability to Corporation Tax.
If you have insufficient Corporation Tax against which to claim the R&D tax credit in a given accounting period, the credit may be set against the Corporation Tax for the preceding period. It can also be carried forward indefinitely or, if your company is a member of a group, it can be allocated to other group members.
In some circumstances, the R&D credit can also be claimed as a payable credit.
Qualifying research and development activities must meet certain conditions, such as:
involve systemic, investigative or experimental activities
be in the field of science or technology
involve basic research and/or applied research and/or experimental development
seek to make scientific or technological advancement
involve the resolution of scientific or technological uncertainty.
To claim the R&D tax credit, it is not necessary to hold the intellectual property rights resulting from the R&D work. It is also not necessary for the R&D work to be successful. The credit is claimed using the Revenue Online Service (ROS). However, before submitting a claim it is important to check that you meet the requirements and have all the necessary supporting documentation. While this may appear onerous, a good tax advisor can guide you through the process. Paying attention to detail when submitting your claim can help avoid Revenue queries and/or a Revenue audit.
Knowledge Development Box
The Knowledge Development Box (KDB) is a tax relief which reduces the Corporation Tax payable on a company’s income from qualifying patents, computer programmes and, for smaller companies, certain other certified intellectual property (IP). Ireland’s KDB was the first IP regime to be fully compliant with new international tax standards and ranks favourably with similar schemes in other countries.
If your company qualifies for the KDB regime, you can avail of a deduction equal to 50 percent of your qualifying profits. In effect, this reduces the normal Corporation Tax rate of 12.5 percent to 6.25 percent on qualifying profits.
For KDB purposes, qualifying assets are those created from R&D activities such as:
a computer programme
an invention protected by a qualifying patent
IP for small companies which is certified by the Controller of Patents as patentable, but not patented.
Marketing related IP such as trademarks, brands, image rights and other intellectual property used to market goods or services are not considered to be qualifying assets.
To apply for the KDB, you must submit your claim on your Corporation Tax return via the Revenue Online Service (ROS). As with R&D tax credits, before submitting a claim it is important to check that you meet the requirements and have all the necessary supporting documentation.
Companies sometimes mistakenly believe that they are not engaged in research and development because they do no operate in industries such as pharma or technology. However, in many instances, companies in other sectors such as manufacturing, energy, financial services, agribusiness, food and drink, are eligible for R&D tax credits and/or the Knowledge Development Box. While navigating the conditions attached to submitting a claim can appear daunting, these are valuable incentives both for indigenous Irish SMEs and for multinationals and are therefore well worth considering.
https://www.crowleysdfk.ie/wp-content/uploads/Research-and-development-1.jpg7501500Alison Bourkehttps://www.crowleysdfk.ie/wp-content/uploads/crowleysdf-chartered-accountants-1.pngAlison Bourke2018-06-26 10:42:122022-03-30 09:14:06Research and Development Incentives in Ireland
Ireland is home to many of the world’s most successful companies. Sixteen of the top twenty global technology firms are located here as are twenty-four of the twenty-five top biotech and pharma companies.
However, it is not just global giants that reap the benefits of doing business in Ireland. Many smaller companies also take advantage of the pro-business culture and ease of access to EU markets.
In the software sector alone, more than 900 multinational and indigenous firms employ 24,000 people generating €16 billion of exports annually, according to IDA Ireland, the state agency responsible for promoting foreign direct investment.
Ireland’s Foreign Direct Investment Success
One reason for Ireland’s foreign direct investment (FDI) success is the favourable tax regime. There are double tax treaty agreements in place with 72 other countries and the 12.5 percent corporate tax rate is one of the lowest in the EU.
Other advantages include an attractive holding company regime and tax incentives for certain types of investment. For example, Irish-resident companies carrying out qualifying research and development activity can avail of a ‘Knowledge Development Box’ where eligible profits are taxed at a rate of just 6.25 percent.
Tax not the only reason to locate in Ireland
While tax is undoubtedly an important consideration, it is not the only reason foreign businesses choose to locate in Ireland. Other influences include:
Ease of doing business.
Supportive state agencies.
EU membership and proximity to EU markets.
Strong legal framework for the development, exploitation and protection of intellectual property rights.
English-speaking population (When the UK leaves the EU, Ireland will be the only English-speaking EU member state).
Strong talent pipeline with around 30 percent of Irish third level students enrolled in science, technology, engineering and maths (STEM).
Collaborative ecosystem where industry and academics work together to the benefit of society and the economy.
Growing economy. GDP growth of 4.4 percent is forecast for 2018 and 3.9 percent for
US and Canadian Companies in Ireland
Around 700 US companies are located in Ireland, employing more than 150,000 people. Anecdotally, US technology companies report that they can hire two engineers in Ireland for the price of one in Silicon Valley, with higher multiples for some engineering specialties.
Notwithstanding the Trump administration’s recent tax reform package which will see US corporation tax rates fall from 35 percent to 20 percent, Ireland’s corporate tax rate is still only around half the US rate when federal taxes are taken into account.
Canadian interest in Ireland is also growing. The EU-Canada trade deal which provisionally came into force in September 2017 will create further opportunities for Canadian businesses seeking to set up in Ireland.
At a time of global economic and political uncertainty, Ireland offers a stable, pro-business environment and is an excellent location from which companies seeking to establish a base in the EU can develop and expand their businesses.
Crowleys DFK assists many foreign owned companies to set up operations in Ireland. For more information and to discuss your specific requirements, please get in touch.
https://www.crowleysdfk.ie/wp-content/uploads/Foreign-Investment.jpg6001600Alison Bourkehttps://www.crowleysdfk.ie/wp-content/uploads/crowleysdf-chartered-accountants-1.pngAlison Bourke2018-02-21 14:16:432019-10-16 12:08:09Benefits of locating your business in Ireland
The Finance Bill 2017 has introduced a tax efficient share option scheme for employees of SMEs. The Finance Bill provides that from 1 January 2018, SMEs in Ireland will be able to grant KEEP (Key Employee Engagement Programme) share options to their employees.
The change in a tax treatment of these share options means an employee may exercise a “qualifying” share option without incurring the liability to income tax, PRSI and USC that he would have under the current rules. Currently, gains arising on the exercise of a share option at a discount on market value are subject to income tax, PRSI and USC. However, KEEP provides that tax on such shares will be deferred until the shares are disposed of and the employee will pay only capital gains tax at 33% on his profit when the shares are sold.
The KEEP Scheme was introduced to facilitate the use of share-based remuneration to attract and retain key employees in unquoted companies.
A number of conditions must be satisfied in order to avail this tax advantageous KEEP Share Option incentive, which are briefly set out below:
Qualifying share options
Shares must be new, ordinary fully paid up with no preferential, current or future rights to dividends or assets on a winding up or redemption
Share options must have an exercise price that is not less than the market value of the underlying shares on the date the option is granted
There must be a written contract in place setting out number and type of shares, option price and exercise period
Share options cannot be exercised within 12 months of grant other than in limited circumstances and options cannot be exercised more than 10 years after date of grant
Share options must be granted for bona fide commercial purposes the main purpose of which is to recruit or retain employees in the company and not part of a tax avoidance scheme or arrangement.
For the purpose of the relief the company must be a “qualifying” company i.e. must have been Ireland/EEA incorporated and Irish resident or carrying on a business in Ireland through a branch or agency
Qualifying company must be carrying on trading activities with the exception of certain excluded activities set out in legislation. The most notable of these excluded activities include professional service companies, companies dealing in or developing land, financial activities and the building and construction industry
The company must be unquoted and remain within the definition of an SME i.e. a company with less than 250 employees and with turnover less than €50m or less than €43m balance sheet
The company can only have a maximum of €3m value of share options in issue and unexercised at any one time.
Must be a fulltime employee/director working at least 30 hours per week
The employment held must be capable of being held for at least a further 12 months from the date the option is granted
The employee must not acquire or be connected to a person who controls more than 15% of the ordinary share capital of the company during option period
Market value of all shares which can be granted in any year of assessment to an employee cannot exceed €100k in any one tax year, €250k in any three consecutive years or 50% of the employee’s annual emoluments for the year in which the option is granted.
KEEP will be available for qualifying share options granted between 1 January 2018 and 31 December 2023. As State Aid approval will be required to introduce this scheme, the scheme is subject to a Ministerial Order.
Contact our Tax Department if you have any questions about KEEP share options or other employee share scheme matters.
With an expert knowledge of the leading best practices and standards, Pamela provides practical risk management, internal controls, compliance and process improvement solutions to clients within the financial services sector.
Budget 2018 introduced a Charities VAT Compensation Scheme. This will take effect from 1 January 2018 but will be paid one year in arrears i.e. in 2019 charities will be able to reclaim some element of the VAT costs arising in 2018.
Charities will be entitled to a refund of a proportion of their VAT costs based on the level of non-public funding they receive.
For example, where a charity’s gross income for 2018 involves 30% funding from State/EU/international organisations and 70% privately sourced income including fundraising, subscriptions and donations, they may claim 70% of their VAT input costs for the year.
Not eligible for relief under the scheme will be VAT incurred on private non-charity-related expenses; VAT incurred that is subject to an existing VAT refund order and VAT incurred that is otherwise deductible.
From 2018 onwards, charities will need to ensure that their accounting systems are designed to enable them quantify the total VAT cost and the proportion that is eligible for refund.
We would be happy to assist charities with implementing/upgrading their accounting systems to identify VAT costs so they can easily be reclaimed and on how best to structure their activities to ensure they maximise the amount of VAT they can reclaim.
You can view the Department of Finance’s document in full here.
If you would like further information, please contact us.
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