If a company is Irish incorporated but is centrally managed and controlled outside the state and is not Irish tax resident does it continue to have to file annual returns with the CRO?

Question

Our client has engaged tax advisors in NZ, and they have advised us that the easiest way for them to progress in NZ is that we prepare financial statements up to December 2020 and file 2020 CT1 with Revenue here in respect of same. They are proposing that we keep the company status alive in Ireland, to save hassle of incorporating a new company in NZ.

To my mind, from 1 January 2021 the company would fall outside the range of Irish Revenue in respect of CT, VAT and PREM, given that the company would be centrally managed outside of the State. Am I right in saying we would need to continue filing Annual Returns with CRO if this was the case? I have not come across a situation like this before, where the company may remain incorporated in the State, but be centrally managed and file accounts/tax returns outside of the State.

Answer

You are correct, an company incorporated in Ireland is obliged to file annual returns and upload financial statements with the CRO.

They are by default tax resident in Ireland, unless they are centrally managed and controlled in another jurisdiction, to the extent that they have created a permanent establishment. Therefore if no permanent establishment has been created in New Zealand, the company will continue to be Irish tax resident.