An Irish Limited Partnership
With foreign members
Which does not carry on a business in Ireland and Derives no income on territory of Ireland
Is not liable to tax in Ireland
In general, Ireland is a jurisdiction with a standard level of taxation. However, Irish legislation provides the opportunity for registration and operating of companies with a zero rate of tax - the Limited Partnerships (LP).
An Irish LP with foreign members, which does not carry on a business in Ireland and derives no income on territory of Ireland, is not liable to tax in Ireland. According to the tax laws of Ireland, a LP is not considered as a separate subject of taxation. The founders should pay taxes from the profits received by the LP in their place of residence in proportions according to their share of interests belonging to them in the LP.
As an example, an Irish LP which has as members one Seychelles and one BVI company, which receives the income only outside of Ireland, will not be assessed for tax. Taxes will be paid by the members in the country of their residence if it is stipulated by the legislation of that particular country.
The favourable tax regime of LP companies does not eliminate the requirements for preparation of financial statements. Every LP is obliged to prepare financial statements, and the relevant Partnership Tax return must be filed annually with Irish Tax Revenue.
An Irish LP is the ideal solution for those who prefer to operate with an EU-registered entity but to have at their disposal a fully tax-exempt vehicle at the same time.
Given the above-stated advantages, Irish LP companies are very popular tools for conducting international business.
In Ireland there are certain obligations, including preparation of financial statements, which must be fulfilled by every type of company, including a LP.
The favourable tax regime of a LP is based on its “pass-through” status in that all profit received by the LP is considered to be transferred to its partners. Accordingly, if the partners are resident in a taxpaying jurisdiction, they will be obliged to pay tax in their country of residence proportionally to their share of participation in the Limited Partnership.
Irish Limited partnership – the tax planning opportunities are in your favor.
Irish limited partnership is a convenient and effective business tool. Its popularity has only increased in the past few years.
The advantages of registering a limited partnership in Ireland:
No residency requirement for partners
Corporate entities can act as partners
Minimal contribution by each partner can be as low as 1 euro
No requirement for the contributions to be paid up
Partnership does not pay corporate tax in Ireland if its partners are not Irish residents and the partnership’s activity is outside of the jurisdiction
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