New legislation to help in attracting funds companies to Ireland

Process of re-locating funds to Ireland simplified
Move highlights importance placed on Irish funds industry

The Companies (Miscellaneous Provisions) Act 2009, passed by Seanad Éireann on Friday 18th December, facilitates non-Irish funds companies re-domiciling to Ireland in a simple and business friendly procedure. This is a significant move in attracting funds companies to locate here. Under the legislation, any funds company will continue its existence, but will do so under Irish law. It also ensures that the process of re-domiciling is made as simple as possible.
Deirdre Power, Financial Services Tax Partner, Deloitte commented: “On the back of the Minister’s comments in his Budget speech where he acknowledged the importance of the international funds industry to the Irish economy, this is a very welcome development. Fundamentally, this new legislation means that companies can re-locate to Ireland in a hassle free and cost effective manner.
“In the international market, fund houses are looking to locate in quality jurisdictions in addition to ensuring operational costs remain low. By removing both the cost and administrative burden of locating in Ireland, many fund houses will be encouraged to look at it as their location of choice, thanks to the many advantages Ireland offers.
“Ireland has an excellent regulatory framework and a wealth of quality service providers with proven expertise. It has a proven track record in offering innovative solutions to the needs of fund houses and is extremely tax effective. These factors now hold even more weight when coupled with the effects of this new legislation.”
There are a number of advantages for companies who re-domicile under this new legislation. Firstly, the company continues as normal and maintains its performance track record. Shareholders do not have to swap shares in any way, thereby avoiding any potential risk to capital gains tax on the disposal of shares.
In addition, the administrative aspects of creating a new fund are eliminated, as are any tax issues that previously may have arisen on moving assets between funds.
The legislation provides that the migrating fund will need to seek certain authorisation from the Irish Financial Regulator as either a UCITS or non UCITS Company. It is envisaged that fund companies will only be permitted to re-domicile to Ireland if the laws of the country of their original registration permit both outward re-domiciliation and inward re-domiciliation. A specific list will be compiled as to those countries, but it is likely to include (among others) the Cayman Islands, the British Virgin Islands, Bermuda and the Channel Islands.

“In line with these regulatory amendments, changes will be made in the forthcoming Finance Bill, which will facilitate the tax aspects of re-domiciliation. The intention is that the same funds benefits that currently accrue to Irish fund companies will also be extended to re-domiciled companies. All of these measures will help in ensuring that Ireland remains at the forefront of the international funds industry.” concluded Deirdre Power.

Deloitte Profile
Deloitte’s 1,100 people in Dublin, Cork and Limerick provide audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 140 countries, Deloitte brings world class capabilities and deep local expertise to help clients succeed wherever they operate.

Deloitte's approximately 169,000 professionals are committed to becoming the standard of excellence.
Deloitte's professionals are unified by a collaborative culture that fosters integrity, outstanding value to markets and clients, commitment to each other, and strength from diversity. They enjoy an environment of continuous learning, challenging experiences, and enriching career opportunities. Deloitte's professionals are dedicated to strengthening corporate responsibility, building public trust, and making a positive impact in their communities.

Legal
Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu and its Member Firms.

These materials and the information contained herein are provided by Deloitte & Touche and are intended to provide general information on a particular subject or subjects and are not an exhaustive treatment of such subject(s). Accordingly, the information in these materials is not intended to constitute accounting, tax, legal, investment, consulting or other professional advice or services. The information is not intended to be relied upon as the sole basis for any decision which may affect you or your business. Before making any decision or taking any action that might affect your personal finances or business, you should consult a qualified professional adviser. These materials and the information contained therein are provided as is, and Deloitte & Touche makes no express or implied representations or warranties regarding these materials or the information contained therein. Without limiting the foregoing, Deloitte & Touche does not warrant that the materials or information contained therein will be error-free or will meet any particular criteria of performance or quality. Deloitte & Touche expressly disclaims all implied warranties, including, without limitation, warranties of merchantability, title, fitness for a particular purpose, non-infringement, compatibility, security and accuracy.

Your use of these materials and information contained therein is at your own risk, and you assume full responsibility and risk of loss resulting from the use thereof. Deloitte & Touche will not be liable for any special, indirect, incidental, consequential or punitive damages or any other damages whatsoever, whether in an action of contract, statute, tort (including, without limitation, negligence) or otherwise, relating to the use of these materials or the information contained therein.

Last Updated: