Brexit
Planning for Brexit
On 23 June 2016, the people of the United Kingdom made the historic decision to leave the European Union. This decision will have enormous impact on the business landscape both in the UK and the EU, especially since the UK is the fifth largest economy in the world. The exact impact of BREXIT is difficult to predict as the negotiations between the UK and the EU have yet to formally commence, but it is not far off. Whatever form it takes, BREXIT will impact your business, and we strongly advise you to prepare now. If businesses are engaged in cross-border trading, especially with the UK, they need to consider the impact BREXIT has on their operations and markets.
Maintain your EU market access through Ireland
Many UK businesses are considering, or are in the process of establishing a foreign EU operation in order to maintain access to the EU, should the UK leave the EU without having negotiated access to the free market. As the UK’s largest trading partner, Ireland is a highly ranked destination of choice for UK businesses thinking of relocating part or all of their operations to another EU member state.
Some advantages that Ireland has over other EU jurisdictions as a relocation destination are:
- Geographically located right beside the UK with flight times between the major UK cities of 1hr 15mins
- English speaking, highly educated workforce
- Commitment to remaining part of the EU
- Common law jurisdiction like the UK with UK case law having persuasive influence in Irish courts
- Transparent tax regime with a commitment to maintaining the 12.5% standard corporation tax rate on trading profits
- Favourable domestic exemptions from Withholding Taxes on dividend and interest payments to non-residents
- Tax exemption for holding companies disposing of trading subsidiaries
- A Research and Development tax regime and a new Knowledge Development Box tax regime which can lower the corporation tax rate to 6.25% on income derived from certain Intellectual Property assets
- An extensive Double Taxation Treaty network
- The ability to prepare financial statements in any currency
Foreign Business Advisory Services
At J. Meade & Company, our team has vast experience in advising foreign businesses on establishing a subsidiary, holding company, or branch operation in Ireland. We can advise initially on incorporation and tax structuring. Once established, we can provide the full range of compliance services such as audit and assurance, taxation and company secretarial. In addition, we can provide payroll and bookkeeping services. We also have associations with various other advisors, such as legal firms who can advise on Irish law and estate agents who can source suitable office space for the operation. Talk to us today if you are thinking about setting your business in Ireland.
Implications of BREXIT for Irish businesses
The implications of BREXIT for Irish businesses is difficult to determine until all negotiations are fully complete. If you business has cross-border interests, operations or customers in the UK, it is important to prepare for every eventuality. Factors to consider are changes in your supply chain, customs clearance and duty payments, taxes, registrations and authorisations. It is also important to consider the changes on your staff management, and make sure your systems and immigration policies are updated. It is suggested that if you are not already, you should become an Authorised Economic Operator (AEO). AEO is a “trusted trader” customs programm that has been in established in the EU since 2008. After Brexit, AEO could help with faster customs’ clearance, providing priority access to companies who have been pre-assessed. Our tax technicians and finance specialists can help you create a plan for these potential changes, and advise you on how to best proceed.
