Duty of non-resident company in Ireland
The Tax and Duty Manual Part 38-02-08 has been revised recently through a brief on 9th July 2020 to add more details on the obligation of non-resident firms to submit specific points required. A copy of the related law, Section 882 of the Taxes Consolidation Act 1997, is added in a postscript to the manual.
Firms which are already listed with the Companies Registration Office have to necessarily get themselves registered with Revenue when they start their business, there is a significant update in their company information or if they receive a notification from a Revenue Inspector. Firms which have listed in the earlier year but have not listed their trading position are notified yearly by Revenue. This notification has to be replied to by the firm to file for a tax listing or to give additional information on the firm’s standing.
Section 882 stipulates on non-resident firms, which are consolidated in the UK and are not stationed here nor doing any business here, to give the following details to the Revenue Commissioners.
- Name of the firm
- Its official listed address in the UK and the address of its main area of business
- The character of its business
- Name and place of stay of the Company Secretary
- The name of the controlling firm and its listed place of office, whose shares are shown in the formal register of a recognized stock exchange and have been traded on the exchange for a time of one year, which ends during the date of giving information.
- In other cases, the name and address of any person or persons who have ownership of the firm.
- The area in which the main management and ownership of the firm is usually done
- Any other details which are deemed important by Revenue to fix the official area of stay of the firm for tax reasons
These details are to be furnished, even if they are not asked, to Revenue within a month of starting a business or if there is a significant variation in details given earlier by the firm or if a Revenue Inspector issues a notification to the firm asking for details under Section 882.
These details may be requested by the Revenue Inspector anytime.
If any firm fails to furnish these details, Revenue can inform the Registrar of companies that the firm has not furnished the Statement of Particulars needed. The Registrar can then start the exercise of removal as per Section 726 of the Companies Act 2014, and both the firm and its Secretary have to pay separate fines under Section 1073 of the Taxes Consolidation Act 1997.
In conclusion, non-resident companies with operations or income sources in Ireland must diligently adhere to the Irish tax framework, ensuring timely registration, accurate filing, and payment of applicable taxes including corporation tax. They must navigate through obligations related to withholding taxes, employment taxes, and adhere to the principles of transfer pricing. Utilizing the Irish Revenue Online Service (ROS) for electronic submissions, including the CT1 tax returns, is essential for streamlined compliance and efficient handling of tax affairs. By understanding and fulfilling these obligations, non-resident companies can effectively manage their tax responsibilities, minimize liabilities, and maintain a good standing with the Irish Revenue, ensuring a smooth operation within Ireland’s regulatory environment.
Some obligations can get overwhelming, but you definitely want to be in complete compliance in order to save your business from misgivings in the future. At DataTracks, we can ensure that you don’t miss a single step on the way. We are committed to accounting for every update and informing you about its impacts on your business. For more information, Contact us @ +353 (0)766 805078!