On the 7th August 2012 (via companies amendment no.2 act 1999, s32 Order 2012) the Irish Government added new thresholds for audit exemption for private limited companies in Ireland -- meaning that you do not need to have your accounts audited during the period in which you qualify. This means less hassle and expense for you.
The Directors of a Private limited company have to decide if their company meets the conditions for claiming audit exemption during a particular accounting year and if so whether it is a good idea to prepare audit exempt Financial Statements?
To qualify as audit exempt:
The group structure & proposed business model should be considered carefully, where appropriate. It is easier to pass dividends, free of dividend witholding tax to US LLC or UK Limited company parent companies than it is to non-resident individuals due to changes made in Section 33, Finance Act 2010. This removed the requirement for certain non-resident companies receiving dividends from Irish resident companies to provide a tax residence and/ or auditor’s certificate, along with a signed non-resident declaration form, in order to obtain exemption from Dividend Withholding Tax (DWT) at source. Instead, a self-certification system applies under which a qualifying non-resident company provides a declaration to the dividend paying company or qualifying intermediary to claim exemption from DWT.
It is also easier to transact between group companies without falling foul of regulations on directors loans.
Would you like to learn more?