QUESTION: I currently own a small company in Northern Ireland and have recently opened a new office in the Republic of Ireland as part of my existing NI company. Can you explain if I have any current tax obligations in the Republic of Ireland and should I incorporate a new company there at a later date?
ANSWER: A company established in Northern Ireland will generally pay UK corporate tax on its worldwide profits. When a business expands its operations into other tax jurisdictions, in this case the Republic of Ireland, it will also be required to comply with tax obligations in that jurisdiction.
However, as there is a double tax treaty between the UK and Ireland, double tax relief would be available in the UK for any Irish tax suffered.
The current UK tax corporate tax rate is 19 per cent and the current Irish corporate tax rate is 12.5 per cent.
The liability to corporation tax in the Republic of Ireland will usually be determined by reference to whether or not your NI business has a permanent establishment (PE)…
