Attribution of profits to non-resident branches consultation

Mar 22, 2021

The Minister for Finance, Paschal Donohoe TD, launched a public consultation on proposed changes to Ireland’s transfer pricing rules to align Irish rules with the Authorised OECD Approach (AOA) to the attribution of profits to branches of non-resident companies. The proposed changes will extend Irish transfer pricing rules to the taxation of branches, with legislation expected to be included in Finance Bill 2021.  

The AOA seeks to attribute profits to a permanent establishment, or branch, that would have been earned at arm’s length if it were a legally distinct and separate enterprise performing similar functions under similar conditions by applying a two-step approach.

In anticipation of legislating for the adoption of the AOA in Finance Bill 2021, the consultation document invites interested stakeholders to:

  • Give their views on the examples of draft legislation and specific questions set out in the consultation document.
  • Provide numerical examples where possible to illustrate their points.
  • Provide details of alternative approaches (however minor) that they consider might be beneficial.
  • Provide details of relevant issues not covered in this Feedback Statement.

The consultation period runs from 16 March 2021 to 12 pm on 16 April 2021. Responses received will form part of the Minister’s consideration of draft legislation on the matter. Members interested in having their views included in the CCAB-I response can email the tax inbox: tax@charteredaccountants.ie.

More information is available through the Department of Finance press release