IrelandIreland

Legal ReferenceSection 835C of the Taxes Consolidation Act 1997 (as substituted by section 27 of the Finance Act 2019 ). The Taxes Consolidation Act 1997 (and the Finance Acts amending that Act) may be accessed on the Irish Statute Book.

In December 2019, Ireland updated its transfer pricing legislation (which has always referred to the Arm’s Length Principle) by replacing the previous provisions. The updated legislation was introduced by section 27 of Finance Act 2019 and applies for chargeable periods commencing on or after 1 January 2020 and, in respect of claims for capital allowances, where the related capital expenditure is incurred on or after 1 January 2020. The application of the transfer pricing rules to small and medium sized enterprises (“SMEs”) is subject to a commencement order by the Minister of Finance. The information contained in this transfer pricing country profile is based on the updated legislation as substituted by section 27 of Finance Act 2019. The definition for SME is based on the Annex to the Commission Recommendation 2003/361/EC (“the Annex”) and applies on a group basis. Some modifications to the approach outlined in the Annex apply in an Irish context.

Legal ReferenceSection 835D of the Taxes Consolidation Act 1997 (as substituted by section 27 of the Finance Act 2019 and as amended by section 35 of the Finance Act 2022).

Ireland’s transfer pricing rules are construed in accordance with the OECD’s Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations published by the OECD on 20 January 2022 (“TPG”) supplemented by such additional guidance, published by the OECD on or after the date of passing of the Finance Act 2022 (i.e. 15 December 2022) as the Minister for Finance may designate by order.

Legal ReferenceSection 835B of the Taxes Consolidation Act 1997 (as substituted by section 27 of the Finance Act 2019).

Ireland’s domestic legislation provides a definition of “associated”, as below: (1) For the purposes of this Part — (a) 2 persons are associated at any time if at that time — i: one of the persons is participating in the management, control or capital of the other, or ii: the same person is participating in the management, control or capital of each of the 2 persons, and (b) a person (in this paragraph referred to as the ‘first person’) is participating in the management, control or capital of another person at any time only if that other person is at that time — i: a company, and ii: controlled by the first person.

Legal ReferenceSection 835D of the Taxes Consolidation Act 1997 (as substituted by section 27 of the Finance Act 2019 and as amended by section 35 of the Finance Act 2022).

Ireland’s domestic legislation is to be construed in accordance with the TPG and, accordingly, provides for the transfer pricing methods that are set out in the TPG. “Other” methods may be acceptable, in accordance with paragraph 2.9 of the TPG.

• CUP (provided)
• Resale Price (provided)
• Cost Plus (provided)
• TNMM (provided)
• Profit Split (provided)
• Other (provided)

Legal ReferenceSection 835D of the Taxes Consolidation Act 1997 (as substituted by section 27 of the Finance Act 2019 and as amended by section 35 of the Finance Act 2022).

In accordance with the TPG, the most appropriate method is used for the application of transfer pricing methods.

• Hierarchy of methods (not selected)
• Most appropriate method (selected)
• Other (if so, please explain) (not selected)

Legal ReferenceSection 835D of the Taxes Consolidation Act 1997 (as substituted by section 27 of the Finance Act 2019 and as amended by section 35 of the Finance Act 2022).

Ireland’s transfer pricing rules are construed in accordance with the TPG. For controlled transactions involving commodities, the guidance contained in paragraphs 2.18-2.22 of the TPG is followed.

Legal ReferenceSection 835D of the Taxes Consolidation Act 1997 (as substituted by section 27 of the Finance Act 2019 and as amended by section 35 of the Finance Act 2022).

Ireland’s transfer pricing rules are construed in accordance with the TPG.

In line with the EU Code of Conduct on Transfer Pricing Documentation (EU TPD) adopted by the European Council on 27 June 2006, Ireland accepts European comparables. If there are insufficient European comparables, Ireland may accept other foreign comparables.

Legal ReferenceSection 835D of the Taxes Consolidation Act 1997 (as substituted by section 27 of the Finance Act 2019 and as amended by section 35 of the Finance Act 2022).

Ireland’s transfer pricing rules are construed in accordance with the TPG, including the guidance on the use of an arm’s length range and statistical measures for determining an arm’s length remuneration in Chapters II and III.

Legal ReferenceSection 835D of the Taxes Consolidation Act 1997 (as substituted by section 27 of the Finance Act 2019 and as amended by section 35 of the Finance Act 2022).

Ireland’s transfer pricing rules are construed in accordance with the TPG, including the guidance on comparability adjustments in Chapters II and III.

Legal ReferenceSection 835D of the Taxes Consolidation Act 1997 (as substituted by section 27 of the Finance Act 2019 and as amended by section 35 of the Finance Act 2022).

Ireland’s transfer pricing rules are construed in accordance with the TPG, including Chapter VI.

Legal ReferenceSection 835D of the Taxes Consolidation Act 1997 (as substituted by section 27 of the Finance Act 2019 and as amended by section 35 of the Finance Act 2022).

Ireland’s transfer pricing rules are construed in accordance with the TPG, including Chapter VI and Annex II to Chapter VI.

There are no special conditions. The HTVI approach is applied in accordance with the TPG.

No.

Legal ReferenceSection 959AA(1) of the Taxes Consolidation Act 1997 (as inserted by section 129 and Schedule 4 of the Finance Act 2012). Section 959AD of the Taxes Consolidation Act 1997 (as inserted by section 129 and Schedule 4 of the Finance Act 2012).

Generally, where a taxpayer has filed a return and made a full and true disclosure of all material facts necessary for the making of an assessment for a particular accounting period, the statute of limitations is 4 years from the end of the accounting period in which the tax return is filed (Section 959AA(1) Taxes Consolidation Act 1997). The same statute of limitations applies to HTVI transactions as applies to other transactions. In cases involving fraud or neglect by a taxpayer, the above-mentioned statute of limitations does not apply and an assessment may be made or amended, at any time, by Irish Revenue (Section 959AD Taxes Consolidation Act 1997).

Avoiding the use of hindsight is covered as part of the training provided to officers on the area of HTVI.

If there is a relevant double tax agreement (“DTA”) in place, a corresponding adjustment may be allowed for HTVI adjustments in a treaty partner jurisdiction in accordance with the provisions of the DTA to the extent the original transaction was not at arm’s length and the adjustment itself is considered arm’s length.

There are no specific provisions in domestic legislation which prevent several adjustments being made. However, adjustments must generally be made within the statute of limitations period described in the answer to question no. 17 above.

Legal ReferenceSection 835D of the Taxes Consolidation Act 1997 (as substituted by section 27 of the Finance Act 2019 and as amended by section 35 of the Finance Act 2022).

Ireland’s transfer pricing rules are construed in accordance with the TPG, including Chapter VII.

Legal ReferenceSection 835D of the Taxes Consolidation Act 1997 (as substituted by section 27 of the Finance Act 2019 and as amended by section 35 of the Finance Act 2022).

Ireland’s transfer pricing rules are construed in accordance with the TPG, including Chapter VII.

Legal ReferenceSection 835D of the Taxes Consolidation Act 1997 (as substituted by section 27 of the Finance Act 2019 and as amended by section 35 of the Finance Act 2022).

Ireland’s transfer pricing rules are construed in accordance with the TPG, including Chapter X.

Legal ReferencePart 35D of the Taxes Consolidation Act 1997 contains the interest limitation rules (as inserted by section 31 of the Finance Act 2021, as amended by section 39 of the Finance Act 2022 and section 47 of the Finance Act 2024).

Ireland has extensive and long-standing rules in place to prevent abuse of interest deductions in calculating taxable profits. In addition, Ireland has implemented the interest limitation rules/measures in the ATAD/ATAD 2. These provisions were introduced in Finance Act 2021 and apply to accounting periods commencing on or after 1 January 2022.

Legal ReferenceSection 835D of the Taxes Consolidation Act 1997 (as substituted by section 27 of the Finance Act 2019 and as amended by section 35 of the Finance Act 2022).

Ireland’s transfer pricing rules are construed in accordance with the TPG, including Chapter VIII.

Legal ReferenceSection 835G of the Taxes Consolidation Act 1997 (as substituted by section 27 of the Finance Act 2019, and as amended by section 104 of the Finance Act 2022 and paragraph 1(c) of the Schedule to the Finance Act 2022). Country-by-country reporting is legislated by way of: Section 891H of the Taxes Consolidation Act 1997 (as inserted by section 33 of the Finance Act 2015 and as amended by section 24(1) of the Finance Act 2016), and S.I. No. 653 of 2016, Taxes (Country-by-Country Reporting) Regulations 2016.

A taxpayer must have available such documentation as may reasonably be required to demonstrate compliance with transfer pricing legislation. The requirement to prepare a master file applies where the total consolidated global revenue of the MNE group is or is likely to be at, or above, EUR 250 million in the chargeable period. The requirement to prepare a local file applies where the total consolidated global revenue of the MNE group is or is likely to be at, or above, EUR 50 million in the chargeable period.

• Master file consistent with Annex I to Chapter V of the TPG (selected)
• Local file consistent with Annex II to Chapter V of the TPG (selected)
• Country-by-country report consistent with Annex III to Chapter V of the TPG (selected)
• Specific transfer pricing returns (separate or annexed to the tax return) (not selected)
• Other (specify) (selected)

Legal ReferenceCountry-by-country reporting is legislated by way of: Section 891H of the Taxes Consolidation Act 1997 (as inserted by section 33 of the Finance Act 2015 and as amended by section 24(1) of the Finance Act 2016), and S.I. No. 653 of 2016, Taxes (Country-by-Country Reporting) Regulations 2016). The legislative requirement for general transfer pricing documentation is contained in Section 835G of the Taxes Consolidation Act 1997 (as substituted by section 27 of the Finance Act 2019, and as amended by section 104 of the Finance Act 2022 and paragraph 1(c) of the Schedule to the Finance Act 2022).

Country-by-country reports must be filed within 12 months from the end of each fiscal year (for example, by 31 December 2025 for fiscal years ending 31 December 2024). In relation to transfer pricing documentation, the legislation requires that a taxpayer company have such records (including, where applicable, a local file and master file) available as may reasonably be required to demonstrate compliance with transfer pricing legislation. The documentation must be prepared no later than the date on which the tax return for the chargeable period is due to be filed. Where a Revenue officer makes a written request for such documentation, it must be provided to the Revenue within 30 days from the date of the request. The documentation must be kept in Irish or English.

Legal ReferencePenalties in relation to country-by-country reporting are provided for in section 891H (7) of the Taxes Consolidation Act 1997 (as inserted by section 33 of the Finance Act 2015 and as amended by section 24(1) of the Finance Act 2016). Penalties in relation to general transfer pricing documentation are provided for in section 835G(6) of the Taxes Consolidation Act 1997 (as substituted by section 27 of the Finance Act 2019).

The penalty for a failure to file a country-by-country report/equivalent country-by-country report is EUR 19 045 plus EUR 2 535 for each day the failure continues. The penalty for filing an incomplete or incorrect country-by-country report/equivalent country-by-country report is EUR 19 045. Where a person fails to comply with the requirement to provide transfer pricing documentation within 30 days of a written request, a fixed penalty of EUR 4 000 will apply. Where a person is of such size that it is required to prepare a local file, the fixed penalty is increased from EUR 4 000 to EUR 25 000 plus EUR 100 for each day on which the failure continues. In addition, where a transfer pricing adjustment results in additional tax due, the transfer pricing legislation provides for protection from tax-geared penalties in circumstances where the taxpayer has fully complied with transfer pricing documentation requirements and demonstrates reasonable efforts were made in applying transfer pricing to the arrangement.

Legal ReferenceSection 835F of the Taxes Consolidation Act 1997 (as substituted by section 27 of the Finance Act 2019, and as amended by section 27(3)(a) of the Finance Act 2021).

In line with the OECD model legislation, country-by-country reporting requirements only apply to multinational enterprises with annual consolidated group revenue equal to or exceeding EUR 750 million in the preceding fiscal year. Ireland’s legislation provides for simplified transfer pricing documentation requirements in respect of SMEs. When SMEs are brought within the scope of transfer pricing rules under Ministerial Order, a small enterprise will not be required to provide transfer pricing documentation and medium enterprises will be required to have available simplified transfer pricing documentation in respect of certain arrangements.

*Ireland will consider engaging in multilateral APAs by way of a series of bilateral APAs. Ireland operates a Co-Operative Compliance Framework (CCF).

• Rulings (not selected)
• Enhanced engagement or cooperative compliance programmes (selected)
• Advance Pricing Agreements (APA) (selected)
• International Compliance Assurance Programme (ICAP) (selected)
• Mutual Agreement Procedures (selected)
• Other (please specify) (not selected)

Legal ReferenceSection 835DA of the Taxes Consolidation Act 1997 (as inserted by section 45 of the Finance Act 2024).

Ireland does not itself allow the application of the simplified and streamlined approach for baseline marketing and distribution activities in the relevant Annex of Chapter IV of the TPG. However, Ireland has provided for, in legislation, a political commitment in relation to ‘covered jurisdictions’ (as defined in the Statement on the definition of covered jurisdiction for the Inclusive Framework political commitment on Amount B, published by the OECD on 17 June 2024) in respect of the simplified and streamlined approach from 1 January 2025. Under the political commitment Ireland has committed to respect the outcome determined in accordance with the OECD Pillar One - Amount B guidance (published by the OECD on 19 February 2024) if such an approach is applied by a covered jurisdiction with which there is a bilateral tax treaty in effect.

Legal ReferenceSection 835DA of the Taxes Consolidation Act 1997 (as inserted by section 45 of the Finance Act 2024).

Refer to Guidelines for Article 9 Correlative Adjustment claims.

Adjustments are allowed to the extent that they are appropriate to the year concerned and are in accordance with the Arm’s Length Principle.

Seventy-two of Ireland’s comprehensive tax treaties contain a provision equivalent to Article 7 as it read prior to the version in the OECD Model Tax Convention 2010. Three of Ireland’s comprehensive tax treaties contain the OECD Model Tax Convention 2010 version of Article 7.

• Article 7 as it read before 2010. (selected)
• Article 7 as it reads after 2010. (selected)
• Other (please provide additional details) (not selected)

For the attribution of profits to permanent establishments of non-resident entities under Irish legislation, see the response to question 45. However, where Ireland has a tax treaty which contains a provision equivalent to Article 7 of the OECD Model Tax Convention, and if the adoption of such an approach would provide relief from Irish tax as determined under Irish legislation, then the profits of the branch may be determined based on the relevant Article contained in the relevant treaty.

Legal ReferenceSection 25A of the Taxes Consolidation Act 1997 (as inserted by Section 28 of the Finance Act 2021).

Legal ReferenceBilateral APA Guidelines, Guidelines on Requesting MAP Assistance, Guidelines for Article 9 Correlative Adjustment claims

Revenue has published guidance on Bilateral Advance Pricing Agreements, Mutual Agreement Procedures, and Article 9 Correlative Adjustment claims.

Legal ReferenceSection 42 of the Finance Act 2010

Prior to the amendment of Ireland’s transfer pricing legislation by Section 27 of Finance Act 2019, Ireland’s transfer pricing rules were contained in Part 35A of the Taxes Consolidation Act 1997 (as inserted by Section 42 of the Finance Act 2010). Section 27 of Finance Act 2019 amended the Taxes Consolidation Act 1997 by substituting a new Part 35A.