A – There is nothing to stop you from opening a company anywhere, to manage artists operating in any market. You certainly do not need a company in every jurisdiction you operate in, although if you are very successful, you may well have to open branch offices in those jurisdictions you are busiest in.
The biggest advantage for anyone setting up a company in Ireland is the rate of Corporation Tax applicable to the trading profit earned by the company. Currently, Ireland provides one of the most favourable corporate tax environments in the western world. The Irish Corporation Tax rate is 12.5% and compares very favourably with the likes of the UK (30%), Germany (40%), France (34%) and the US (39.5%). However, to avail of this low rate of Corporation Tax, the company must be “managed and controlled from Ireland”. What the Irish Revenue Commissioners – that’s the people who collect taxes off citizens and companies alike – mean by this, is that there must be an office and an individual in Ireland running and controlling the company. The Revenue are very aware that people may wish to avail of our low Corporation Tax rates without physically running the business from Ireland.
It is not clear from your question whether you intend to manage Irish or UK artists and therefore whether your company’s primary activities will take place in Ireland or the UK. However, if you intend to manage Irish artists and base yourself in Ireland, then the company will be liable to charge VAT on it’s income at 21% (the corresponding rate in the UK is 17.5%). All Irish VAT on costs can be set off against this.
On the other hand, if you are managing UK artists from your Irish company, then you can charge VAT at 0% on your management commission and VAT will be charged at 0% on all costs you incur in the UK. You will still have to pay Irish VAT on any Irish income and can set off any Irish VAT on your costs against this.
The company will, of course, be required to pay Paye/Prsi on all salaries paid. Currently personal tax rates are 20% (on the first €29,400 if single, double that if married) and 42% on the remainder. These rates and bands are higher than those currently operating in the UK, where tax is 22% on the first Stg£32,400 and 40% on the remainder.
From the company’s point of view, the benefits from the low Corporation Tax rate here would make a base in Ireland very attractive. However because personal income tax is higher, getting your money out of the company by way of salary will prove to be more costly than if the company were based in the UK. You also have to bear in mind that London is the centre of the music industry in Europe, if not the world, and to have a presence there is extremely advantageous. Having the company’s base in Ireland and managing UK artists from here could prove to be awkward and impractical in the end, as the savings made from lower taxes may be eaten up by added travel costs to and from the UK.