Transfer Pricing in Ireland at a glance
|Are there specific transfer pricing regulations?||Yes|
|Submission deadline upon request||28 days|
|Annual update required||No|
|Official language requirements||English and Irish|
|Potential impact of penalties||N/A|
Irish tax law
Rules for transfer pricing in Ireland are based upon:
- Part 35A Taxes Consolidation Act (TCA) 1997
- Section 835C TCA 1997 (Section 835C)
The Irish tax law is generally in line with the OECD Transfer Pricing Guidelines and the Irish transfer pricing regulations should be interpreted in accordance with the OECD Guidelines.
Accepted methods are:
- comparable uncontrolled price
- the resale price method
- the cost plus method
- the profit split method
- the transactional net margin method
Information that should be provided:
- The associated persons that are party to the transaction
- The nature and terms of the transaction
- The terms of relevant transactions with both third-parties and associates
- The method or methods, by which the pricing of the transactions were derived, including any comparability analysis and any functional analysis undertaken
- The application of the transfer pricing method
- Any budgets, forecasts or other relevant papers relied on in arriving at an arm’s length results
Rules for transfer pricing in Ireland prescribe that all documentation should be submitted either in Irish or in English.
Documentation should be available by the due date for filing the income tax return.
Deadline to submit upon request
Records are to be made available for inspection within a period of not less than 21 days from the request. In practice, the Irish Revenue will seek documentation under the Transfer Pricing Compliance Review program. Under this program, a period of three months is granted to taxpayers to self-review their transfer pricing and report back to the Irish Revenue with findings and relevant supporting documentation.
Advance Pricing Agreements
Bilateral Advance Pricing Agreements are facilitated by virtue of the network of double taxation agreements in place.
There are no specific transfer pricing penalties, meaning that ordinary tax penalties apply.