Ireland’s Department of Finance on 21 November released its Feedback Statement in relation to Phase One of the proposed reform of Ireland’s taxation regime for Interest, which among other things, included a proposal to extend the Irish transfer pricing rules to medium-sized enterprises.
Ireland’s transfer pricing rules currently contain an exclusion for medium-sized enterprises, but with a provision that brings in their inclusion subject to a ministerial order, thereby bringing in its inclusion with relative ease if desired.
Interestingly, the strawman proposal on this particular change mentions a report published by the European Commission in September 2023, which mentioned that Ireland is one of only a few EU member states whose transfer pricing rules include a carveout for small and medium-sized enterprises (SMEs).
Medium-sized enterprises are defined as enterprises that employ fewer than 250 persons and that have an annual turnover not exceeding EUR 50 million, and/or an annual balance sheet total not exceeding EUR 43 million. This definition does not include enterprises that employing fewer than 50 persons and have an annual turnover and/or annual balance sheet total that does not exceed EUR 10 million.
Whilst this proposal is only at the initial feedback stage, companies that fall within the definition of a medium-sized enterprise should consider what this potential introduction would mean for their transfer pricing arrangements.
Stakeholders may provide comments to the Phase One Feedback Statement during the consultation period, which ends on 16 January 2026.
Kevin O'Donohoe
BDO in Ireland
Ireland’s transfer pricing rules currently contain an exclusion for medium-sized enterprises, but with a provision that brings in their inclusion subject to a ministerial order, thereby bringing in its inclusion with relative ease if desired.
Interestingly, the strawman proposal on this particular change mentions a report published by the European Commission in September 2023, which mentioned that Ireland is one of only a few EU member states whose transfer pricing rules include a carveout for small and medium-sized enterprises (SMEs).
Medium-sized enterprises are defined as enterprises that employ fewer than 250 persons and that have an annual turnover not exceeding EUR 50 million, and/or an annual balance sheet total not exceeding EUR 43 million. This definition does not include enterprises that employing fewer than 50 persons and have an annual turnover and/or annual balance sheet total that does not exceed EUR 10 million.
Whilst this proposal is only at the initial feedback stage, companies that fall within the definition of a medium-sized enterprise should consider what this potential introduction would mean for their transfer pricing arrangements.
Stakeholders may provide comments to the Phase One Feedback Statement during the consultation period, which ends on 16 January 2026.
Kevin O'Donohoe
BDO in Ireland
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