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5.3. Tax Consolidation / Group Treatment

Ireland does not allow for consolidated returns for group companies. However, unutilized losses of a group company can be used to offset current period taxable profits of another group company.

For Ireland tax purposes, qualifying groups include a parent company and all subsidiaries in which the parent has direct or indirect beneficial ownership of at least 75%. The group companies must also be either Ireland tax residents, residents in other European Economic Area (EEA) countries, or in a jurisdiction with which Ireland has a DTA. In addition, the losses of non-resident companies can only be used to offset taxable profits of another group company if the activities giving rise to those losses would otherwise be subject to Ireland tax.

Capital losses of one group company cannot be used to offset profits of another. However, Ireland does provide tax relief for intra-group transfers of capital assets from one resident group company to another resident group company.

Any gain, based on the original cost of the capital asset when it entered the group, will be taxable if the asset is later sold outside of the group. In addition, if a company acquires a capital asset via an intra-group transfer and later leaves the group (within 10 years), the gain on the transfer become taxable.