This series of articles will provide you with an update on Brexit tax developments that impact organisations in Ireland and those that do business with Ireland.
Brexit: Ireland/UK social security convention
Although the UK left the European Union on 31 January 2020, all existing EU social security co-ordination rules will continue to apply to the UK until the end of the transition period on 31 December 2020. In the context of employee mobility, these include rules on the country in which an employee is required to pay social security contributions, if they work outside their home country.
Much of Ireland’s direct tax landscape will remain unaffected when the United Kingdom leaves the EU customs union and single market at the end of the transition period on 31 December 2020. Unlike indirect taxes, direct taxes are not dealt with by the EU treaties, but rather national legislation which must be enacted in accordance with EU treaties. As a result, direct taxes are less likely to be impacted by Brexit.
Brexit’s impact on the financial services industry
As things currently stand (November 2020), the risk of a no deal Brexit appears much more likely. Given Irelands close trade relations with the UK, Ireland will undoubtedly be impacted across a range of industries. However, one industry that is likely to feel the impact of Brexit more than most, is the Financial Services Industry. Whether this impact will be experienced in a positive or negative sense remains unclear and only time will tell. The purpose of this article is to examine the opportunities of Brexit for the Irish Financial Services Industry and the consequences of a likely no deal Brexit.
With less than 2 months to the Brexit year end deadline, there is a marked lack of contingency preparation and awareness by many businesses to the significant impact of the Brexit related fallout to business supply chains.
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