Transfer Pricing

What has changed since Budget 2027?  

The core transfer pricing provisions contained in Part 35A TCA 1997 were not amended in the Finance Bill.  Elsewhere, the Finance Bill does include some technical amendments relating to transfer pricing including: 

• Section 68 contains a technical amendment to Section 959AU TCA 1997 in relation to the due date of the payment of tax where an amended assessment is raised to give effect to the agreed terms of an advance pricing arrangement (APA) which has been negotiated and agreed by the Irish Competent Authority and a competent authority of another territory.  The changes clarify that the due date for any tax payable shall be one month from the date of the amended assessment. 
• Section 33 updates Section 247 TCA 1997 which deals with interest relief for companies on loans used to acquire an interest in other companies.  The changes relate to subsection 4F which restricts interest relief to investing companies in cases where the companies which use the borrowed monies are in receipt of interest from the on-lending of those monies.  The Finance Bill changes stipulate that such restriction will not apply where section 835C (one of the transfer pricing provisions in Part 35A) applies to the arrangements. 

Who is affected, and when?  

The changes contained in Section 68 of the Finance Bill only impact companies who are seeking a bilateral APA between Ireland and another jurisdiction. The APA process can take a number of years to negotiate and tax returns for past chargeable periods which are included in the APA application may already have been filed and tax paid under self-assessment rules. In some cases, the negotiated outcome of the APA may mean that these filed returns need to be amended with amended assessments raised. The Finance Bill clarifies that any tax arising becomes due and payable within one month of the date of the amended assessment(s). The changes will take effect once the Finance Bill passes into law. The changes in relation to Section 33 of the Finance Bill generally apply for accounting periods beginning on/after 1 January 2027.

What does this mean for businesses?

The transfer pricing related changes in Section 68 of the Finance Bill are technical in nature but do clarify the due date for any tax payable where an APA outcome is negotiated by the Irish Competent Authority and a counterparty tax authority in another territory. The changes in Section 33 of the Finance Bill provide clarity in situations where interest income arises from on-lending of borrowed monies. 

What should businesses do now? 

Regulatory and compliance obligations are becoming more complex and continue to evolve, requiring taxpayers to review and adapt their processes regularly. A well-defined approach, supported by appropriate resources and clear ownership, is essential to meeting deadlines, maintaining accurate records and responding to new requirements. Taxpayers are increasingly looking to automate routine compliance activities, improve data quality and use technology to help identify issues, interpret requirements and support decision-making.  

Our view

Taxpayers should continue to monitor transfer pricing developments in every jurisdiction in which they operate. Requirements continue to evolve, with many countries introducing or strengthening regulations, documentation obligations, filing deadlines and tax return disclosures. Keeping track of these changes can help organisations identify gaps early, update their compliance processes and prepare the evidence needed to support their transfer pricing positions. Although this year’s Finance Bill only contains minor technical amendments relating to transfer pricing, international developments remain important.