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Company residence : An irish company employees two employees as sales reps in Ireland. They use an irish address purely for post and have an irish bank account. All directors are UK resident, payroll and accounts preparation are carried out in the uk . Director meetings are held in uk. Are there any issues in relation to the residence of this company that needs to be highlighted to the directors.

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Posted by (Questions: 62, Answers: 15)
Asked on 8 January 2019 1:10 pm
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The company could be deemed to have a permanent establishment in Ireland in the form of a person who has power to conclude contracts on behalf of the company.

Article 5(3) of the UK Ireland Double tax treaty:

(4) A person acting in a Contracting State on behalf of an enterprise of the other Contracting State—other than an agent of independent status to whom the provisions of paragraph (6) of this Article apply—shall be deemed to be a permanent establishment in the first-mentioned State if he has, and habitually exercises in that State, an authority to conclude contracts in the name of the enterprise, unless his activities are limited to the purchase of goods or merchandise for the enterprise.

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Answered on 4 February 2019 6:51 pm