Ireland’s attractiveness as the domicile of choice for Investment Funds is further enhanced as it retains its Pro-enterprise tax policy

There has always been an excellent partnership approach between the Irish funds industry and the Government agencies towards developing the industry here as well as maintaining the highest regulatory practice. This approach has been the cornerstone of the Irish funds industry. These legislative changes are another example of the partnership in action and demonstrate how Ireland continues to be one of the leading international fund markets, through its ability to adopt changes as market needs arise and provide solutions for funds operating in the global markets.

Pat Convery, Director Taxation Services, PricewaterhouseCoopers

PriceWaterhouseCoopers
December 15th 2009

Delivering his budget speech on December 9th, Finance Minister, Brian Lenihan confirmed the Irish Government’s commitment to ensuring that Ireland remains an attractive domicile for investment funds.

The Government is in the process of fast tracking amended legislation to enhance the efficiency for funds re-domiciling to Ireland. The proposal, set to be in place before Christmas, seeks to amend Irish Company law, “the Companies (Miscellaneous Provisions) Bill 2009, to allow a foreign Investment Fund to re-establish itself as an Irish registered company. This will allow the fund company to qualify as an Irish regulated investment fund, either UCITS or Non-UCITS and subject to meeting the Irish Financial Regulator’s requirements. The Irish Financial Regulator is committed to a coordinated authorisation process to facilitate speed to market, which at present is a key advantage in the context of delays being experienced in other EU domiciles.

Separately, the Minister has also announced proposals to amend taxation legislation to ensure that Ireland is the domicile of choice for the creation of UCITS Funds and Management Companies. Specifically, the proposals are expected to ensure that the management of a foreign UCITS by an Irish Management Company will not give rise to an Irish tax charge for the foreign UCITS fund.

We all recognise the fund rationalisation opportunities that UCITS IV is set to bring with the introduction of Master Feeder Structures and the facilitation of Fund Mergers to the UCITS regime. These tax measures should ensure that these rationalisation opportunities should not give rise to any adverse Irish tax implications for the funds and their underlying investor.

These proposals are set to place Ireland at the forefront to becoming the European hub for the international fund industry. “Our Corporation Tax rate of 12 ˝% has become an international “brand” known the world over” according to Minister Lenihan. These new proposals are testament to Ireland’s pro-enterprise ethos and strengthening of our competitive edge to continue to attract new business and jobs to this country.

Pat Convery, Director Taxation Services, PricewaterhouseCoopers said:

“There has always been an excellent partnership approach between the Irish funds industry and the Government agencies towards developing the industry here as well as maintaining the highest regulatory practice. This approach has been the cornerstone of the Irish funds industry. These legislative changes are another example of the partnership in action and demonstrate how Ireland continues to be one of the leading international fund markets, through its ability to adopt changes as market needs arise and provide solutions for funds operating in the global markets.”