Why Ireland: Tax residency

Why Ireland: Tax residency

To be considered tax resident in Ireland, the ongoing operation of a company must demonstrate that central management and control is exercised by the Irish company’s board of directors and that all critical business and strategic decisions are directed by the board of the Irish company.

There are a number of critical factors to be considered when determining central management and control, including who the present directors are and where the (majority) of the directors reside. Other key factors are where the:

     /     Directors’ meetings are held

     /     Major contracts are negotiated or agreements concluded

     /     Questions of important company policy are determined

     /     Company seal, minute books, and share register of the company are kept

     /     Accounts are prepared and audited

     /     Bank accounts of the company are held

Taking the factors above into account, the following should be considered:

/     Constituting the board of the company such that the majority of directors are Irish resident directors (or at least 50% are Irish resident)

     /     Holding quarterly board meetings in Ireland with all directors attending such meetings in person

     /     Making key decisions at Irish board meetings

Making all strategic decisions in relation to the company’s business

     /     Reviewing and/or approving major contracts, which would be signed by an Irish resident director

     /     Making key management decisions in relation to setting and changing business policy

     /     Demonstrating that the board is actively seeking new opportunities to develop the business

     /     Making all financing decisions