Tax Minimization in Ireland

Updated on Monday 05th December 2022

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Tax minimization in Ireland represents a legal method that can help a company reduce the taxes due at the end of the financial year. This procedure is sustained by tax minimization laws offered by the Irish legislature. Our law firm in Ireland can offer complete details on the tax minimization procedures.

Double Taxation Treaties – as a tax minimization method

Irish legislation offers tax relief measures for corporate investors, and most of them are applicable through double taxation treaties signed by Ireland with its partner countries. At the moment, 68 double taxation agreements out of the 72 signed by Ireland came into effect, ratifying procedures on income tax, corporation tax and capital gains tax.

According to Article 7 on Irish Tax Treaties, business profits of a foreign company in Ireland are not subjected to Irish taxes “if the enterprise has a permanent establishment in the other State” with which Ireland has agreed on a double tax treaty. Our lawyers in Ireland can give you details about other provisions on double tax measures, such as taxation minimization methods on dividends.

Irish Taxes Consolidation Act

With the countries with which Ireland hasn’t signed any treaties, the applicable law is the one stated in the Irish Taxes Consolidation Act 1997 that regulates double taxation for the following types of income:

dividends from foreign subsidiaries;
foreign branch profits;
trading income on the receiving company;
capital gains on foreign assets.

While the Irish authorities challenge any tax avoidance schemes, you can make sure that you remain tax compliant whilst optimizing the taxation of your company when you choose to work with our accountants in Ireland. We offer complete accountancy solutions, timely tax payments and submissions, and assist companies who wish to apply for tax incentives or credits.

Charitable donations in Ireland

Another tax minimization method stipulated by the Irish law is the charitable donation, available for both companies and real persons. Our Irish lawyers can provide you with more information on how the tax is applied for both entities, but generally, the tax relief is available for the following situations:

the yearly value of the donation is greater than EUR 250;
it is in the form of money or shares, or a combination between the two;
it is not repayable;
it is not related to the purchase of a property.

There are many legal tax minimization methods available in Ireland, and our Irish lawyers can offer you more information on this matter. You can contact our law firm in Ireland for consultation on the tax minimization procedures available in this country.