Deferral of Exit Tax, S628A.

Tax and Duty Manual Part 20.2.2 has been updated and expanded with information regarding procedures for migrating companies that elect to defer their exit tax charge under section 628A of the Taxes Consolidation Act 1997.

Section 628A provides companies migrating to an EU/EEA country with the option of deferring the payment of exit tax by either payment of the tax in equal instalments over six years, or deferral of the payment for up to ten years (or until the asset is subsequently disposed of, if sooner).

A migrating company that wishes to defer its exit tax charge is required to select the preferred option in its final tax return. Interest will be charged on the deferred exit tax and Revenue may require a migrating company to provide security to ensure payment, if deemed necessary.

26 May 2015