835EA Small or medium-sized enterprise

Summary

This section excludes small and medium-sized enterprises (“SMEs”) from the scope of this Part. This section will remain in operation until such time as section 835F is commenced by Ministerial order and SMEs are brought within the scope of transfer pricing rules.

Details

(1) Transfer pricing rules do not apply in computing the profits or gains or losses of a person who is an SME for the chargeable period.

(2) An SME is defined for the purposes of the section. This definition is closely based on the definition of enterprises which fall within the category of micro, small and medium-sized enterprises as defined in the EU Commission Recommendation of 6 May 2003. Broadly, this comprises groups of companies where the group employs less than 250 employees and either has a turnover of less than €50m or assets of less than €43m.

Certain modifications to the definitions contained in the Annex to the Commission Recommendation apply for the purposes of defining SMEs in an Irish context.

Relevant Date: Finance Act 2021