Arthur Cox warns against making corporation tax changes too complex
Reading time: 1 minute
Plans to introduce a new dividend participation exemption in the Irish corporation tax system will be “a futile exercise” if it is not made as simple as possible, Arthur Cox has warned.
The law firm has published its detailed submission to the government consultation on the planned introduction of the exemption from early 2025 through the autumn 2024 Finance Bill.
Ireland is the only EU country and one of very few OECD countries that does not operate some form of participation exemption for foreign dividends.
In its submission, Arthur Cox recommends that the government should adopt the “best-in-class” UK model “for both the participation exemption and the foreign branch profits exemption”.
“If the new rules are a complex partial exemption, then all that will have been achieved is to change from one complex system that raises no tax to another complex system that raises no tax — a futile exercise,” the firm said.
The government will respond to the consultation responses in March and July 2024.
Share this article:
Subscribe to our newsletter to not miss articles like this one:
SUBSCRIBE
