Ireland's upcoming budget offers chance to move past Apple case

In a recent article published by Bloomberg Tax, Robert Dever, tax expert at Pinsent Masons, said that the Court of Justice of the EU’s decision to make Apple Inc. pay Ireland €13 billion in back taxes has raised questions about Ireland’s position as an attractive location for multinational companies.  

He told Bloomberg Tax: “The decision undermines the government’s long-standing position that Ireland doesn’t give preferential tax treatment to any taxpayers, companies or otherwise, and will serve as fodder to those who seek to portray Ireland as a tax haven.”

However, Dever expected Ireland’s planned budget announcement on 1 October to bring some positive changes to alleviate the impact of the Apple tax case. For example, the Irish government plans to publish its annual Finance Bill shortly after the budget announcement. The Bill, according to Dever, “will offer an ideal opportunity for Ireland to introduce measures and enhance its corporate tax offering, so the country remains an attractive location for multinational investment”.

In the article, Dever also pointed out that 2025 could see the introduction of a best-in-class foreign dividend participation exemption, and a much-lobbied reduction to the headline capital gains tax rate that is currently one of the highest among member countries of the Organisation for Economic Co-operation and Development (OECD).

The Irish government has recently consulted on the development of a participation exemption from Irish corporate tax for foreign dividends. The reform is set to simplify the tax treatment of foreign-sourced dividends and bring Ireland’s corporate tax regime closer into line with those of competitor jurisdictions. The Irish government intends to legislate for the participation exemption in this year’s Finance Bill, and for it to take effect from 1 January 2025.