Irish Revenue has issued eBrief No. 039/22 regarding updated guidance regarding the defensive measures added to the CFC rules by Finance Act 2021, which are targeted at jurisdictions listed by the EU as non-cooperative. The defensive measures disapply the effective tax rate exemption, the low profit margin exemption, and the low accounting profit exemption so that an Irish resident company with a CFC resident in a listed jurisdiction may not avail of these exemptions.

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Revenue eBrief No. 039/22 Controlled Foreign Company Rules

Chapter 11 of the Tax and Duty Manual Part 35b-01-01, Controlled Foreign Company (CFC) Rules, which deals with section 835YA regarding Irish defensive measures in respect of the CFC rules has been updated to include more detail and reflect an amendment introduced by Finance Act 2021.