CM December DECEMBER 2018

COUNTRY FOCUS
AUTHOR – Adam Bernstein
WITH a framework
not too dissimilar
from that of the UK,
little of the process
should be much
of a surprise to
exporters. Ireland allows businesses to
operate through companies (there are ten
variants from private limited companies,
public limited companies and Societas
Europaea). These of course come with the
usual regulatory duties to report and file
on a public register. The duties placed on
directors are similar to those placed on UK
directors under Companies legislation.
Partnerships are also available to those
wanting to carry on business between
two or more people (without the need for
any formal registration). As in the UK,
partners have unlimited personal liability
for business debts. Again, as in the UK,
a hybrid model exists of limited liability
partnerships where partners are only liable
to the limit of their investment.
PROTECTING PROPERTY
Businesses that depend upon IP rights
benefit from practical protection under
Irish law. Some consider that the Irish
Trade Marks Act 1996 and the Copyright
and Related Rights Act 2000 to be state
of the art legislation which offer better
protection than that afforded by other
European states.
Irish law meets the requirements of the
Berne Convention, the TRIPS Agreement
and the 1996 Geneva Copyright treaties,
as well as all relevant IP EU directives.
Considering that Ireland is one of the
world’s largest exporters of software it’s
not surprising that appropriate protections
have been enshrined in Irish law to protect
these IP rights. The regime is overseen by
the Irish Patents Office at patentsoffice.ie/.
EMPLOYMENT LAWS
As in the rest of the EU, employment law
applies to those working in Ireland, no
matter what their nationality.
Employment law is governed by a
multitude of laws – the Constitution of
Ireland 1937; Irish statutes and EU law;
judicial precedents; common law (including
contract law); statutory regulations that
cover health and safety, redundancy
payments, transfers of undertakings,
collective bargaining agreements; as well
as custom and practice in the workplace
and workplace or industry rules.
The primary legislation regulating
employment includes the Unfair Dismissals
Acts 1977 to 2015; Employment Equality
Acts 1998 to 2015; National Minimum Wage
Act 2000 and the Payment of Wages Act
1991; Terms of Employment (Information)
Acts 1994 to 2012; Maternity Protection
Acts 1994 to 2004 and other protective leave
legislation; Minimum Notice and Terms
of Employment Acts 1973 to 2005; Fixed
Term Workers, Part Time Employees and
Agency Workers Protection Legislation;
Organisation of Working Time Act 1997.
Quite a list, but it should outline where
those with queries should look.
TAX MATTERS
Corporation tax – companies that are
resident in Ireland must pay corporation
tax on worldwide profits and chargeable
capital gains (subject to double taxation
treaty relief). The standard rate on Irish
trading profits is 12.5 percent. To benefit
from this rate, companies must derive
income from a trade that is actively
carried on in Ireland.
A rate of 25 percent applies to nontrading
(for example, rental income
and royalty income) and foreign-source
income.
VAT is charged on certain imports
and on goods and services supplied in
Ireland in the course of business. VAT
ranges from zero to 23 percent depending
on the product or service. There is more
detailed information on this at revenue.ie/
en/Home.aspx together with all the other
taxation information an exporter will be
interested in.
As an aside, it’s worth stating that while
taxes are never much fun other than for
accountants and the tax collector, the
Irish Revenue’s website is well designed
and very easy to navigate.
Employment – individuals who are a
tax resident (183 days or more in a year,
or 280 days or more over a year and the
previous tax year taken together) will pay
income tax on their worldwide annual
taxable income at 20 percent on the first
€34,550 to €43,500 (depending marital
status / children) and 40 percent on the
remainder.
As in the UK, there are individual tax
credits, which vary depending on the
employee’s circumstances, and can be set
off against their income tax liability.
The Universal Social Charge (USC)
replaced the health and income levies in
2011, at rates varying from 0.5 percent (up
to €12,012) to eight percent (income up to
€100,000) with a three percent surcharge
for income over €100,000, depending on
income and age. USC is treated as a tax
rather than a social security contribution
for tax purposes.
Most employers and employees (over
16 years of age and under 66) pay social
insurance (PRSI) contributions into the
national Social Insurance Fund. This is
set at four percent for employees.
VISAS AND PERMITS
Lastly, those from non-exempt countries
must obtain an entry visa before travelling
to Ireland; details of exempt and nonexempt
countries can be obtained from
the Department of Foreign Affairs and
Trade (dfa.ie).
Employment permits are required
by all non-EEA/Swiss nationals. The
Employment Permits Acts 2003 to 2014
establish a statutory regime governing
employment permits which is operated by
the Department of Business, Enterprise
and Innovation (dbei.ie). There are three
primary types of permit: Critical Skills
Employment Permits; General Work
Permits and Intra Company Transfer
Permits.
Ireland is a land of opportunity and
an easy gateway into Europe. For a post-
Brexit United Kingdom, Ireland is a
natural place to consider doing business.
Adam Bernstein is a freelance
business writer.
The Recognised Standard / www.cicm.com / December 2018 / PAGE 31