Ireland Tax News

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Ireland implements European Company Statute

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ECJ: hearing in case regarding Dutch withholding tax on outbound dividends

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Company tax regimes of Swiss cantons exempting foreign profits incompatible state aid under EU-Switzerland Agreement

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Final Report on Improving the Resolution of Tax Treaty Disputes

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EU Commission requests Italy not to apply a withholding tax on dividends paid to Netherlands parent companies

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EU Commission requests Italy to implement the Interest and Royalties Directive correctly

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Budget for 2007 - highlights

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Report on Attribution of Profits to PEs released

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EU Commission progresses infringement actions against Member States for discriminatory taxation of outbound dividends

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ECJ holds French withholding tax on outbound dividends incompatible with freedom of establishment

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ECJ: previous UK ACT regime regarding outbound dividends compatible with EC fundamental freedoms (ACT IV GLO) – details

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German Federal Tax Court holds CFC rules not applicable in cases of administratively limited tax relief in order to comply with low taxation threshold

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European Commission refers Italy and Luxembourg to ECJ for not implementing Directive amending EC Parent-Subsidiary Directive

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European Commission requested Spain to end infringement to the EC Parent-Subsidiary Directive concerning the use of anti-abuse measures

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European Commission requests Belgium to terminate discriminatory taxation of inbound dividends

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European Commission requests Belgium, Italy, Luxembourg, Netherlands, Portugal and Spain to terminate discriminatory taxation of outbound dividends

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European Commission decides that Luxembourg's preferential tax regime for 1929 holding companies constitutes incompatible state aid

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Status of Irish common contractual funds under the Ireland-US tax treaty

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Treaty between Ireland and Italy – Irish CGT not covered

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Finance Bill 2006

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Additional protocol between Ireland and Portugal signed

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On 7 December 2005, the Budget for 2006 was presented by the Minister of Finance. Unless otherwise stated, the proposals are expected to take effect from 1 January 2006. The proposals for companies include: the introduction of measures to restrict relief for interest paid in the context of certain related company transactions with effect from 7 December 2005.

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In September 2005, the Revenue Commissioners announced the withdrawal, pending the receipt of legal advice on the subject, of their previous view that Irish capital gains tax is a tax

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The maximum rates of withholding tax are:

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As from 1 January 2006, the 2003 income tax treaty, signed on 8 October 2003, will replace the 1966 income tax treaty.

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The first-time income and capital tax treaty between Iceland and Ireland , signed on 17 December 2003, entered into force on 17 December 2004. The new treaty generally applies from 1 January 2005.

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The first-time income tax treaty between Greece and Ireland and the related protocol, signed on 24 November 2003, entered into force on 29 December 2004. The new treaty generally applies from 1 January 2005.

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