Tax newsletter Q2 2024

This quarter, we focus on significant amendments and guidance introduced by recent legislation. The Employment Investment Incentive Scheme (EIIS) has seen noteworthy changes under the Finance Act 2023, effective 1 January 2024. These updates, which aim to balance enhancements and restrictions while aligning with EU State Aid regulations, are crucial for your understanding and preparedness. In tandem, Irish Revenue has published its guidance on the Outbound Payments Defensive Measures, offering pivotal clarifications for taxpayers dealing with royalties, interest, and distributions. These measures, part of the Finance (No. 2) Act 2023, are crucial for preventing double non-taxation and ensuring compliance with withholding tax obligations.

We also explore CESOP, the European Union's Central Electronic System of Payment Information, which mandates EU Payment Service Providers to report cross-border payment data starting January 2024. This initiative by the European Commission aims to address the VAT gap caused by errors and fraud, ensuring accurate VAT collection across member states.

Furthermore, our attention turns to the increased Revenue interventions concerning Form 46G returns. With heightened compliance scrutiny post-COVID, timely and accurate filing of this form is essential to avoid penalties and ensure smooth business operations. Additionally, we discuss the planned participation exemption for foreign dividends, a proposed shift from the current "tax and credit" system that promises to simplify taxation for Irish companies receiving overseas dividends.

Lastly, we delve into the Special Assignee Relief Programme (SARP), which offers significant tax savings and, with meticulous adherence to its conditions, can be a valuable resource. Many employees and employers fall short of these requirements, leading to lost benefits. Our detailed overview aims to help you navigate and fully utilise this relief programme, providing you with an opportunity for significant tax savings.

We trust you will find this edition informative and valuable for your business. For further information, please get in touch with your Forvis Mazars representative or the authors of these articles.