The European Union considers Ireland a vital business hub in the region, being one of the more popular countries to start a business in. Its highly developed knowledge economy allows potential investors and business owners to achieve their investment goals successfully. In addition, Ireland has a well-established regulatory framework and an excellent compliance regime. 

Section 110 establishes a special tax regime for “qualifying companies”, often known as section 110 companies. It allows for a wide range of tax-neutral financial and leasing transactions to be carried out by qualified Irish-resident special purpose vehicles (SPVs). 

What are the criteria to qualify as Section 110? 

The following criteria (unless otherwise stated) must be met throughout the life of the entity to qualify as a Section 110: 

• The company must be an Irish resident.  

• It must carry on business in Ireland.  

• It must not carry out activities other than those ancillary to its business.  

• It must acquire/create/hold ‘’qualifying assets’’, and the market value of these assets on the date of acquisition must be at least €10 million – this is a day-one-only requirement.  

• Transactions must be at arms-length.  

• It must notify the Revenue Commissioners of its intent to be a Section 110 qualifying entity. 

What are the key features and benefits of a Section 110 Company? 

A Section 110 company does not have a blanket exemption from Irish taxation. However, the issuance of profit participating notes can help it become tax neutral if it is structured correctly as the interest payments on the notes which vary with profits are generally tax deductible. A Section 110 Company has several other advantages including a tax-deductible funding cost and any related expenses. It can also benefit from Ireland’s wide network of tax treaties and be exempt from tax withholding on interest and dividend payments. 

A qualifying Section 110 Company is exempt from stamp duty on the issuance and transfer of bonds or notes. Moreover, a Section 110 Company is generally treated as being engaged in VAT-exempt activities for VAT purposes, and as such, it may be able to recover all or a percentage of the VAT it incurs on any services it receives 

What are the types of companies? 

Bolder’s detailed guide provides the types of companies and an overview of their key differences.  Learn more. Download your copy by filling out the form below. 

What are the ongoing obligations and regulatory requirements of Section 110? 

Explore the relevant obligations and requirements of Section 110 in our free guide. Get your own copy below. 

Bolder Group does not provide financial, tax or legal advice and the information contained herein is meant for general information purposes only. We strongly recommend that before acting on any of the information contained herein, readers should consult with their professional advisers. The Bolder Group accepts no liability for any errors or omissions in the information, or the consequences resulting from any action taken by a reader based on the information provided herein.

Bolder Group refers to the global network of independent subsidiaries of Bolder Group Holding BV. Bolder Group Holding BV provides no client services. Such services are provided solely by the independent companies within the Bolder Group which are each legally distinct and separate entities and have no authority (actual, apparent, implied or otherwise) to obligate or bind Bolder Group Holding BV in any manner whatsoever. The operations of the Bolder Group are conducted independently and have no affiliation with third party financial, tax or legal advisory firms or corporations.