Ireland as a Headquarter Location for Shipping Groups

The Irish government has been proactive in its aim to develop the shipping/shipping services sector in Ireland. Ireland’s young educated work force and enviable geographical location, together with the low level of corporation tax, have helped position the country as an attractive location to base shipping activities. Unlike other low tax jurisdictions, Ireland benefits from ever improving infrastructure, with six major ports located around the country. Recent developments including the adoption of a competitive Tonnage Tax regime have greatly enhanced Ireland’s attractiveness.

Overview of Ireland’s Tax Regime

Ireland has a low standard rate of corporation tax of 12.5% on trading profits. A higher rate of 25% applies to non-trading income, e.g. investment income, rental income. Ireland has an extensive network of tax treaties, including all of the world’s major economies. The Irish government currently has entered into double taxation agreements with 44 countries. In general, there is no withholding tax on distributions or interest payments made to these treaty partners. Unlike many of its European neighbours, Ireland currently does not have any general transfer pricing, thin capitalisation or Controlled Foreign Corporation legislation. In addition to these attractive features, in 2004 Ireland introduced measures to attract multinational corporations to Ireland as a place for their headquarters or holding companies.

Ireland now also has a competitive Tonnage Tax regime which when combined with the above factors makes Ireland an attractive location for international shipping operations.

This is only an excerpt of Ireland as a Headquarter Location for Shipping Groups

Content is restricted to subscribers. To continue reading please Log-In or view our subscription options.