Tax Code

Dáil Éireann Debate, Thursday - 28 January 2016

Thursday, 28 January 2016

Ceisteanna (67)

Clare Daly

Ceist:

67. Deputy Clare Daly asked the Minister for Finance the arrangements he made with the Microsoft company in respect of being granted the status of being domiciled here; if that arrangement included a requirement to retain manufacturing here; and if this arrangement is now non-existent given the decision of the Arvato plant in Swords in County Dublin to re-locate its packaging and distribution of Microsoft software to the Czech Republic from July 2016. [3517/16]

Freagraí scríofa

Minister for Finance

I am not clear what arrangement the Question is referring to. The residence of a company is set down in statute and therefore no arrangement would be permitted in relation to any company.

The Finance Bill 2014 amended the company residence rules such that from 01 January 2015 any company incorporated in the State will be Irish tax resident. This amendment brought Ireland's company tax residence rules into line with the majority of EU and OECD member states. The common law "management and control" test also continues to apply to companies that are not incorporated in the State and that are centrally managed and controlled in the State. To ensure that this change did not negatively impact on other related group companies who have real and substantial operations in Ireland, a six year transitioning period was provided for to give these groups a reasonable timeframe to plan and re-organise their business structures to take account of this change.