Monthly Archives: May 2009

Ireland: extension of IP tax reliefs, with a potential 2.5% tax rate

From A&L Goodbody, news that the Irish Finance Bill, published on 7 May, provides for tax depreciation for expenditure incurred after 7 May 2009 on the acquisition of qualifying IP and extends the stamp duty exemption to ensure that transfers of IP qualifying for tax depreciation also qualify for exemption from stamp duty.

The relief is available up to a maximum of 80% of the taxable income against which the deduction may be taken (excess depreciation may be carried forward).  As Ireland’s corporation tax rate for trading income is 12.5%, the new measures potentially allow for a 2.5% effective rate to be achieved (20% at 12.5%).