Ireland’s favorable business environment and competitive tax system have made it a preferred destination for international businesses seeking to establish their presence in Europe. However, in order to fully benefit from Ireland’s corporate tax advantages, companies must navigate certain regulatory requirements. One such requirement is demonstrating a ‘Real and Continuous Link’ to Ireland, which is crucial for avoiding the non-resident bond. In this article, we’ll explore the concept of a ‘Real and Continuous Link’ and provide guidance on how your Irish company can meet this requirement effectively.
The ‘Real and Continuous Link’ is a legal concept in Irish tax law that serves to distinguish between companies that are genuinely conducting business activities in Ireland and those that are merely using Ireland as a tax shelter without a substantial presence in the country. This concept is crucial for determining whether a company qualifies for the benefits of Irish tax residency, including a reduced corporate tax rate.
The Irish Revenue Commissioners use various criteria to assess whether a company has a ‘Real and Continuous Link’ to Ireland. These criteria include the location of board meetings, the management of the company’s affairs, the presence of key decision-makers in Ireland, and the level of economic activity conducted within the country.
For an Irish company, establishing a ‘Real and Continuous Link’ to Ireland is essential for benefiting from the country’s advantageous tax regime and avoiding the non-resident bond. By maintaining a registered office, appointing Irish resident directors, conducting core business activities within the country, and adhering to other guidelines outlined in this article, you can strengthen your company’s case for a ‘Real and Continuous Link.’ Seeking professional advice and staying informed about regulatory changes will help ensure that your company maintains its tax-resident status in Ireland.
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