Branch Office in Ireland

Irishkid

Hi All,

I hope this is the correct place for this question. I am considering opening a branch office of my company in Ireland, the main office is in Spain. The branch in Ireland will be for research work and supply various services. From what I understand if I have a branch office in Ireland then I will have to have consolidated accounts for both offices after that things get a bit sketchy. Do I have to submit accounts in Ireland? Do I have to pay tax in Ireland and then again in Spain? Any help in clarifying this would be greatly appreciated.

Many Thanks

BarMcc

All companies operating a branch in Ireland are required to submit a form F7 with the CRO along with accounts for the company as a whole, annual directors report (which must mention branch), and any auditors report.

Any profits from the Branch are taxable in Ireland if trading through a permanent establishment in Ireland. You can claim a tax credit in Spain for any Irish tax paid on these profits.

Irishkid

Many Thanks for the response. Anotehr point would be, if I transfer money from the Spanish Branch to the Irish Branch, is that then taxable?

BarMcc

There is no tax charge if all you are doing is moving money from one bank account to another

Irishkid

Even if one account is in Spain and one in Ireland?

Irishkid

Hi All,

if I did open a branch in Ireland, is there something special you need to take into consideration when paying salaries for example? I would be starting off with one or two people so I am wondering if this is an overly complex thing accountancy wise, for example, would I need an accountant?

Cheers

Colm