After going through the fiscal crisis of the 1980s, the State gradually began to expand the corporation tax base. Some restrictions were applied to financing based on taxes between 1982 and 1986. Then in late 1980s and early 1990s a general shift appeared in industrial policy, broadening tax base in the area of corporation. Basically, the Irish corporation tax is imposed on the worldwide profits. It is composed of chargeable gains and incomes of companies residing in the country. Foreign companies, on the other hand, are subject to corporation tax on its chargeable profits.

Ireland has a specific Corporation Tax Code which includes four basic tax expenditures aiming to achieve certain policy objectives: the Knowledge Development Box (KDB), Development (R&D) Tax Credit which are designed to increase Business Expenditure on Research and Development (BERD). However, unincorporated businesses, for example, self-employed persons or sole proprietorships cannot be a subject to corporation tax. This means that profits and gains arising from companies’ trade are viewed as income chargeable to income tax.

Statistics
Ireland’s taxation system ir progressive which means that the higher are incomes, the higher is a tax rate applicable to those incomes. Data collected last year (2016) shows (Publicpolicy.ie) that the tax paid by one person on earnings that are half average is the 2nd lowest in the OECD (altogether 34 countries) which, for example, is 1/10 of Denmark’s rate.

Types of taxes in Ireland
Ireland has several types of taxes: an income tax, a value added tax (VAT), corporation tax and also Universal Social Charge (USC) on your employment income and Pay Related Social Insurance (PRSI).

Corporate taxes
A tax on company income imposed by Ireland’s authorities was approved since the establishment of the Irish Free State in 1922. There is also an Article 74 of the Constitution of the Irish Free State stating regulations for transitional provisions related to collection and imposition of taxes that were imposed previously under the British administration in Ireland.

The common corporate tax rate qualifying dividends from EU and tax treaty territories is fixed at 12.5%. However, corporate tax of 25% is imposed on all passive incomes. Companies may be subject to other taxes though. For example, stamp duties on the transfer of property – the rate are 1-2%, local property taxes with the rate of – 0.18-0.25%. There are also industry-specific taxes established in the country. For example, it can be a shipping tonnage tax or construction operations tax.

In addition, there is a special tax which applies to certain petroleum activities, depending on the profit yield of a site. Therefore, the applicable tax rate can range 25%- 40%. Another example is a carbon tax which is applied on mineral oils such as kerosene or auto fuels, which can be purchased in Ireland. The rates of such taxes are equal to EUR 20 per ton of CO2 emitted.

VAT tax
VAT in Ireland can be referred to as a consumption based tax assessed on the value added to available goods and services which can be applied to almost everything that country offers and sells for use or consumption. VAT tax rate applicable in the country is 23%. However, there can other tax rates depending on the type of goods or services provided.

Income taxes
Every person living in Ireland must pay his or her worldwide income taxes. The basic condition is living in Ireland for 183 days or more during one tax year or for 280 days or more during the tax year and the previous tax year. If less than that, then a person is not considered tax resident and shall only pay taxes on income earned in Ireland. Tax rates for incomes are: up to 33 800 EUR – 20% and over 33 800 EUR – 40%. There is a special Pay As You Earn (PAYE) system established in the country governed by Irish Tax and Customs office.

Pay Related Social Insurance (PRSI)
PRSI payments can be considered as a part of the Social Insurance Fund (SIF). This fund provides help by paying for Social Welfare benefits and pensions. It shall be paid by all employed residents except those who are earning 38 EUR or more per week by doing full-time or part-time job, workers who are self-employed and their annual income is 5,000 EUR a year or more and persons who are 16 years old or over or are under pensionable age.

Universal Social Charge (USC)
USC is referred to as a tax which must be paid on person’s total income. However, there are some types of income that are exempt. For example, an individual can pay USC at the standard rate or the reduced rate, depending on the circumstances. Reduced rates of Universal Social Charge apply to those individuals who are aged 70 or older or hold a Medical Card which is full, if a person reaches the age of 70 or holds a full medical card at any time during the year, having total income of 60,000 EUR or less otherwise the standard rates of UCS shall be applied to incomes.

Corporate documents, also called legal documents, are a set of specific documents that write down all the necessary facts about the company. These documents are called the face of the company as they are the source of official information about the company. Whenever a company is formed or changed, documents containing facts about the company or the facts about the changes in company law must be submitted to the business register. The registry amends the information in the commercial register and attaches the submitted documents to the company's file so that any person is entitled to receive the official facts about the company.

There are different types of corporate documents, each containing different information. The most important documents are the constituent documents, such as the memorandum of association and the articles of incorporation.

Each document has strict requirements and a specific form. A signature on some documents must be notarized to be legally binding. These documents are usually drawn up by lawyers or law firms specializing in business law. It is important to remember that the status and requirements of legal documents vary by jurisdiction. Also, the names of the documents may vary in different countries.

Corporate documents required for company formation
In order to incorporate a company, two basic incorporation documents are required:

Social contract
It contains the basic conditions under which the company may operate. The document consists of information such as the company name, information on the founders, information on the equity of the company, the permissible amount of the formation costs and their disbursement order, etc.;
social contract
It generally defines the responsibilities of the board, the nature of the business to be conducted, and the means by which the owners exercise control over the board. With the consent of the founders, the Articles of Association may contain specific resolution-making provisions, limitations of the Board of Directors, powers of the Council and other specific terms relating to the procedure of transfer of shares.
Other secondary documents may be requested. These are as follows:

An application from the local company register – each state has its own form that must be submitted for changes to be made;
Statement of each board member / approval of board member; List of shareholders / division of the register of shareholders (in the case of a limited liability company);
Specification of the company address / notification of an office address;
bank statement on the payment of the share capital;
Receipt of payment of state fee;

The development of telecommunications and economic globalization have made it possible for interested investors to set up companies all over the world. With proper research, financial investment and legal backing, business ventures can be safely incorporated in almost any country in the world. Building an international business used to be a complicated entrepreneurial venture, but today it is commonplace with the help of experienced legal and business advisors.

The advantages of founding a company abroad are as numerous as they are obvious. Many countries offer specific locational advantages, ranging from natural resources and well-established infrastructure to beneficial laws and regulations that encourage growth in a particular industry. Likewise, it can be difficult to start a business or an acquisition in your own country due to adverse situations: political or regulatory environment, lack of resources and more. In this situation, it makes sense to consider an overseas option that offers greater opportunities for growth, development, and success.

Company registration in Kosovo
When starting a business in Kosovo, an interested investor must conduct due diligence on legal procedures, international regulations and sufficient investments for success. It is crucial to understand cultural, social and political factors that influence starting and growing one's business. Failure to do so may result in unintended consequences. Poorly researched and toneless international launches often end in disaster as time, money and energy is wasted due to poor planning.

Legal Documents
Every country in the world presents its own intricate challenges when it comes to starting, developing and maintaining a business. Owners, financiers and investors must make these commitments with the support of a knowledgeable and experienced legal team. Only someone with in-depth knowledge of local and international corporate law will be able to set up an overseas business while avoiding the pitfalls that plague many new businesses.

Additionally, smart business people can consider ways to invest in foreign companies without actually starting their own businesses. In these situations, it is still beneficial for the investor to partner with a knowledgeable global economics and litigation advisor. International investments create a truly diverse portfolio that offers growth opportunities that were unthinkable decades ago.

Potential investors, venture capitalists and entrepreneurs should consider the existing infrastructure in Kosovo when planning to start a new business. While extensive infrastructure and systems can help make the process of starting a business a smooth one, it could also represent market saturation and reduced growth potential. On the other hand, a lack of infrastructure is often a major obstacle to growth; However, the lack of infrastructure points to a clear market opening for a creative and efficient new business.

Bank account opening in Kosovo
In connection with the establishment of a company, it is necessary to open one or more bank accounts in Kosovo. Confidus Solutions offers the ability to open a bank account in over twenty jurisdictions, making it easy for you to avoid challenging language barriers or bureaucratic hassles.

Virtual Office in Kosovo
Since a registered address is a necessity for international business, Confidus Solutions enables foreign investors to set up a virtual office in Kosovo. This address allows international entrepreneurs to accept mail, arrange for shipping and set up a registered bank account in their country of business.

Tax regulations
If you are in the process of researching a business formation in Kosovo, consult a lawyer or consultant with extensive experience in the area you are considering. This advisor can help you with everything from laws and tax structures to local helpers. You need to consider every aspect from the local office to your highest organizational structure; Make sure you recruit the best possible mentors as you embark on this exciting but challenging process.