Ireland is a very attractive country for investors, some of the largest companies in the world conducting their business operations from here through branch offices and subsidiaries. The country is also an attractive jurisdiction for smaller enterprisers looking to open companies in Ireland. One of the main reasons both small and large companies choose to operate in Ireland is that the country has no exchange control regulations with respect to the repatriation of profits from this country. Ireland imposes no restrictions on the repatriation of income resulting from capital, royalties or interests. Moreover, repatriation payments from Ireland can be made in any currency. Irish residents and non-residents can set up bank accounts in any currency, while Irish companies are allowed to open bank accounts in other countries with no restrictions. Irish companies are also allowed to repatriate profits without any restrictions.
Repatriation of profits from Irish company is usually done through the payment of dividends. Profit repatriation can also be done through interests, royalties, central cost recharges and few other modalities.
The Irish tax system implies the taxation of dividend payments. At the same time, Ireland has a wide network of double tax treaties which allows the application of a reduced tax rate for dividend payments or even tax exemptions depending on the country when it comes to repatriated profits. Another important aspect of the Irish taxation system is that it provides exemptions from paying the dividend tax for dividends paid to companies reinvesting their profits.
When it comes to the repatriation of profits resulted from interest payments, Ireland applies a 20% tax rate to payments made on loans and advances contracted for at least 12 months. However, if the interest is paid during a business transaction to a company registered in an EU country or a country with a double taxation agreement with Ireland, no tax will apply. Repatriation of profits to or from Ireland resulted from royalties payments are usually taxed at 20%, unless the company receiving the payment has signed a double tax treaty with Ireland.
For more information about repatriation of profits, you can contact our specialists in company formation in Ireland.