Ireland – Transfer Pricing (2025)

Legal framework and scope

Ireland’s domestic transfer pricing framework was substantially updated by section 27 of the Finance Act 2019, which replaced prior provisions and applies to chargeable periods commencing on or after 1 January 2020 and, in relation to claims for capital allowances, where the related capital expenditure is incurred on or after 1 January 2020. The current legal provisions are contained in the Taxes Consolidation Act 1997 as substituted and amended by the Finance Act 2019 and subsequent Finance Acts. The definition of small and medium-sized enterprises (SMEs) is based on the Annex to Commission Recommendation 2003/361/EC and applies on a group basis with certain modifications in the Irish context. The application of transfer pricing rules to SMEs is subject to commencement by the Minister for Finance. Key statutory provisions referenced in the domestic law include section 835B, 835C, 835D, 835F, 835G and 835DA of the Taxes Consolidation Act 1997, among others.

Arm’s Length Principle and the role of the OECD Guidelines

Ireland’s domestic law explicitly refers to the Arm’s Length Principle. Section 835D of the Taxes Consolidation Act 1997 (as substituted by section 27 of the Finance Act 2019 and amended by section 35 of the Finance Act 2022) provides that Ireland’s transfer pricing rules are to be construed in accordance with the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations (TPG) published on 20 January 2022, and that additional guidance published by the OECD after the passing of the Finance Act 2022 may be designated by the Minister for Finance by order. Consequently, the TPG serve as the primary interpretative and methodological reference for the application of the Arm’s Length Principle in Ireland.

Definition of related parties

Domestic legislation provides a statutory definition of “associated” for transfer pricing purposes. Under section 835B of the Taxes Consolidation Act 1997 (as substituted by section 27 of the Finance Act 2019), two persons are associated at any time if one participates in the management, control or capital of the other, or the same person participates in the management, control or capital of both. A person is treated as participating in the management, control or capital of another person only if that other person is a company and is controlled by the first person. These statutory tests reflect control, participation and ownership criteria that determine related party status for transfer pricing purposes; the rules also apply as relevant to permanent establishments under the attribution rules discussed below.

Methods and selection criteria

Ireland’s domestic transfer pricing framework refers to the TPG for the permissible transfer pricing methods. Section 835D provides for the methods set out in the TPG, namely the Comparable Uncontrolled Price (CUP), Resale Price, Cost Plus, Transactional Net Margin Method (TNMM), and Profit Split, and allows for the acceptance of other methods in accordance with paragraph 2.9 of the TPG. The statutory approach follows the “most appropriate method” criterion as set out in the TPG rather than a rigid statutory hierarchy. For commodity transactions, section 835D directs that guidance in paragraphs 2.18-2.22 of the TPG is to be followed for controlled commodity transactions.

Comparability and ranges

Ireland follows the TPG’s guidance on comparability analysis (Chapter III). There is no legal preference for domestic comparables; in line with the EU Code of Conduct on Transfer Pricing Documentation, Ireland accepts European comparables and, if insufficient European comparables exist, other foreign comparables may be used. The use of secret comparables is not permitted. Ireland permits the use of an arm’s length range and statistical measures (such as the interquartile range or other percentiles) for determining arm’s length remuneration in accordance with Chapters II and III of the TPG (section 835D). Comparability adjustments are required where appropriate, following the TPG guidance.

Documentation and reporting requirements

Ireland requires taxpayers to have transfer pricing documentation available to demonstrate compliance. Section 835G of the Taxes Consolidation Act 1997 (as substituted by section 27 of the Finance Act 2019 and amended by section 104 of the Finance Act 2022 and relevant Schedule provisions) sets out that taxpayers must have such records, including where applicable a local file and master file, as may reasonably be required. The master file requirement applies when the MNE group’s total consolidated global revenue is or is likely to be at or above EUR 250 million in the chargeable period. The local file requirement applies when the group’s total consolidated global revenue is or is likely to be at or above EUR 50 million in the chargeable period. Country-by-country reporting is legislated by section 891H of the Taxes Consolidation Act 1997 (inserted by section 33 of the Finance Act 2015 and amended by section 24(1) of the Finance Act 2016) and S.I. No. 653 of 2016, with the conventional CbC threshold of consolidated group revenue equal to or exceeding EUR 750 million in the preceding fiscal year.

Timing and formality obligations are specific. CbC reports must be filed within 12 months from the end of each fiscal year (for example, by 31 December 2025 for fiscal years ending 31 December 2024). Transfer pricing documentation (master and local files where required) must be prepared no later than the date on which the tax return for the chargeable period is due. If a Revenue officer issues a written request for documentation, the taxpayer must provide it within 30 days of the request. Documentation must be kept in English or Irish.

Penalties for documentation non-compliance are specified. Failure to file a CbC or equivalent report attracts a fixed penalty of EUR 19,045 plus EUR 2,535 for each day the failure continues; filing an incomplete or incorrect CbC attracts EUR 19,045 (section 891H(7)). Failure to provide transfer pricing documentation within 30 days of a written request attracts a fixed penalty of EUR 4,000. For persons required to prepare a local file, the fixed penalty is increased to EUR 25,000 plus EUR 100 for each day on which the failure continues; the increased penalty applies where the person required to prepare a local file fails to provide required transfer pricing documentation (not limited to failure to provide only the local file). Additionally, where a transfer pricing adjustment results in additional tax, the legislation provides protection from tax-geared penalties where the taxpayer has fully complied with documentation requirements and can demonstrate reasonable efforts were made in applying transfer pricing; this protection is not available in cases of deliberate behaviour to under-declare tax.

Exemptions are provided in relation to SMEs and the internationally agreed CbC threshold. Section 835F provides for simplified documentation requirements for SMEs once SMEs fall within scope by Ministerial Order: small enterprises will not be required to provide transfer pricing documentation and medium enterprises will be required to have simplified documentation available in respect of certain arrangements. The CbC threshold follows the EUR 750 million consolidated group revenue threshold.

Safe harbours and simplification measures

Ireland does not provide sectoral safe harbours or other broad simplification measures beyond the SME simplifications and the documentation thresholds described above; the official profile indicates no additional safe harbours are available.

APAs, MAP and dispute avoidance/management

Ireland offers a range of administrative mechanisms to prevent and resolve transfer pricing disputes, including Advance Pricing Agreements (APAs), Mutual Agreement Procedures (MAPs), enhanced engagement/cooperative compliance programmes and participation in the International Compliance Assurance Programme (ICAP). Ireland will consider multilateral APAs by way of a series of bilateral APAs. Revenue has published Bilateral APA Guidelines, Guidelines on Requesting MAP Assistance and Guidelines for Article 9 Correlative Adjustment claims. Ireland operates a Co‑Operative Compliance Framework (CCF) for large corporates and relevant divisions.

Secondary adjustments, year-end adjustments and corresponding adjustments

Year-end adjustments are permitted where appropriate to the year in question and consistent with the Arm’s Length Principle; they are not stated as mandatory. The domestic framework does not expressly provide for secondary adjustments and the official profile indicates that secondary adjustments are not provided for. Ireland allows downward corresponding adjustments in the absence of a MAP; guidance is provided via the Guidelines for Article 9 Correlative Adjustment claims. For HTVI matters, Revenue may allow corresponding adjustments in open years for amounts relating to closed years where a relevant DTA provides for such a corresponding adjustment and the adjustment is itself arm’s length.

Statute of limitations

Where a taxpayer files a return and makes a full and true disclosure of all material facts necessary for assessment for a given accounting period, the statute of limitations is generally four years from the end of the accounting period in which the tax return is filed (Section 959AA(1) of the Taxes Consolidation Act 1997, as inserted by section 129 and Schedule 4 of the Finance Act 2012). In cases involving fraud or neglect by the taxpayer, this limitation does not apply and an assessment may be made or amended at any time (Section 959AD of the Taxes Consolidation Act 1997).

Permanent establishments and attribution of profits

Ireland’s treaty network contains both pre‑2010 and post‑2010 versions of Article 7. Seventy‑two of Ireland’s comprehensive tax treaties contain a provision equivalent to Article 7 as it read prior to 2010, and three contain the 2010 version. Domestically, Ireland follows the Authorized OECD Approach (AOA) as described in the 2010 Report on the Attribution of Profits to Permanent Establishments for the attribution of profits to PEs of non‑resident entities; Section 25A of the Taxes Consolidation Act 1997 (inserted by Section 28 of the Finance Act 2021) addresses attribution of profits to PEs under Irish legislation. For treaties containing Article 7 as it read before 2010, Ireland does not generally apply the AOA; however, where a treaty’s adoption of the AOA would provide relief from Irish tax as determined under Irish law, the profits of the branch may be determined based on the relevant Article in the treaty.

Specifics on intangibles, HTVI, intra‑group services, financial transactions and cost contribution arrangements

Ireland’s transfer pricing rules are construed in accordance with the TPG including Chapter VI on intangibles. The domestic law also follows the guidance on Hard‑to‑Value Intangibles (HTVI) as set out in Chapter VI and Annex II to Chapter VI of the TPG; no special additional domestic conditions are applied beyond the TPG. The statute of limitations for HTVI is the same as for other transactions (generally four years, subject to the fraud/neglect exception). Taxpayers may request bilateral or multilateral APAs for HTVI matters. Revenue provides training to officers to mitigate hindsight risks in HTVI valuations. Revenue generally cannot make adjustments in open years for amounts pertaining to closed years under the HTVI approach, though corresponding adjustments in treaty partner jurisdictions may be possible under a DTA where appropriate.

Intra‑group services are addressed by reference to Chapter VII of the TPG and Ireland permits the simplified low value‑adding intra‑group services approach in line with Chapter VII. Financial transactions are governed by Chapter X of the TPG, and Ireland has additional domestic rules relevant to financial transactions: Part 35D of the Taxes Consolidation Act 1997 contains interest limitation rules (inserted by section 31 of the Finance Act 2021, as amended by section 39 of the Finance Act 2022 and section 47 of the Finance Act 2024) implementing ATAD/ATAD 2 measures. Cost contribution arrangements are permitted and follow Chapter VIII of the TPG.

Simplified and streamlined approach for baseline marketing and distribution (Amount B)

Ireland does not itself allow the application of the simplified and streamlined approach for baseline marketing and distribution activities set out in the Annex to Chapter IV of the TPG; section 835DA (inserted by section 45 of the Finance Act 2024) reflects this. However, Ireland has legislated a political commitment with respect to ‘covered jurisdictions’ defined in the Statement on the definition of covered jurisdiction for the Inclusive Framework political commitment on Amount B (published 17 June 2024): Ireland has committed to respect outcomes determined in accordance with the OECD Pillar One – Amount B guidance (published 19 February 2024) if such an approach is applied by a covered jurisdiction with which Ireland has a bilateral tax treaty in effect from 1 January 2025. Ireland confirms it will respect the outcome of a covered jurisdiction’s application of the simplified and streamlined approach in line with that political commitment (section 835DA).

Other administrative aspects and additional information

Revenue has published detailed guidance and procedures on Bilateral APAs, MAP assistance and Article 9 Correlative Adjustment claims. Prior to the 2019 amendments, Ireland’s transfer pricing rules were contained in Part 35A of the Taxes Consolidation Act 1997 as inserted by Section 42 of the Finance Act 2010; Section 27 of the Finance Act 2019 substituted a new Part 35A.

Conclusion

Ireland’s transfer pricing regime is fully aligned with the OECD Transfer Pricing Guidelines and incorporates the TPG methodologies, comparability and documentation standards into domestic law. The framework provides clear thresholds for documentation (master file EUR 250 million, local file EUR 50 million, CbC EUR 750 million), quantified penalties for documentation failures, and administrative mechanisms (APAs, MAPs, CCF, ICAP) for dispute prevention and resolution. Ireland applies the TPG approach to intangibles, HTVI, intra‑group services, financial transactions and cost contribution arrangements and has implemented domestic rules to address interest limitation and related financial measures. Where the profile does not set out further domestic detail, the TPG remain the primary source of guidance.

References

For full country profile details and links to the OECD transfer pricing country profiles page, see: https://www.oecd.org/en/topics/sub-issues/transfer-pricing/transfer-pricing-country-profiles.html