Ireland
Ireland Mandatory iXBRL Filing of Financial Statements by Revenue
In line with Ireland’s ongoing efforts to modernize and streamline its tax reporting system, the Revenue Commissioners have mandated the submission of Inline XBRL (iXBRL) financial statements for all companies filing corporation tax returns. This initiative, designed to enhance the efficiency, accuracy, and accessibility of financial data, has now entered Phase 2 of its roll-out.
What is iXBRL?
Inline XBRL (iXBRL) is an advanced version of XBRL (eXtensible Business Reporting Language) that allows companies to embed financial data directly into the financial statements, making them machine-readable while maintaining the format of human-readable documents. This standard ensures greater accuracy, efficiency, and transparency in financial reporting.
Phase 2 Implementation: Who is Affected?
As of Phase 2, all companies filing corporation tax returns in Ireland, with the exception of those meeting specific exemption criteria, must submit their financial statements in iXBRL format. This applies to a wide range of entities, including:
- Irish-resident companies
- Non-resident companies with Irish tax obligations
- Companies operating through branches or permanent establishments in Ireland
Exemption criteria may apply based on factors such as company size, turnover, or the nature of business operations. Companies falling under these criteria should verify their status with the Revenue Commissioners to determine whether they qualify for an exemption.
Why is iXBRL Filing Being Mandated?
The move to iXBRL filing is part of a broader push by the Irish government to improve the accuracy, consistency, and transparency of financial reporting. The key benefits of this mandate include:
- Improved Accuracy and Efficiency: iXBRL enables automated data extraction, reducing the chances of human error and ensuring consistent reporting.
- Faster Processing and Review: Financial statements submitted in iXBRL format can be processed and reviewed more quickly by the Revenue Commissioners, streamlining the tax compliance process.
- Greater Transparency: iXBRL enhances the accessibility of financial data for regulators and stakeholders, improving the overall transparency of corporate financial practices.
Key Features of the iXBRL Filing Requirement
- Corporation Tax Returns: All companies filing corporation tax returns must include their financial statements in iXBRL format.
- Financial Statement Tagging: Companies are required to tag financial data in line with the Irish Financial Reporting Taxonomy. This taxonomy maps the data to standard accounting and tax categories, ensuring alignment with regulatory expectations.
- Real-Time Reporting: The iXBRL system enables the submission of financial data in real-time, providing regulators with up-to-date financial information as soon as it is filed.
- Enhanced Data Analysis: iXBRL allows for deeper analysis of financial statements, making it easier for the Revenue Commissioners to monitor and assess tax compliance.
Who Should Prepare for iXBRL Filing?
- Corporate Tax Departments: Tax teams must ensure that their financial statements are compliant with iXBRL requirements, which includes mapping financial data to the required taxonomies and ensuring proper tagging.
- Finance Teams and Accountants: Companies need to implement the necessary systems for generating and filing iXBRL financial statements, which could involve updating financial reporting processes and integrating new software solutions.
- External Advisors and Consultants: External accountants, auditors, and tax consultants must ensure that companies are fully prepared for iXBRL filing and compliant with the Revenue’s taxonomies.
How We Can Help
As a leading provider of regulatory compliance solutions, we offer a comprehensive suite of tools and services designed to streamline iXBRL filing for businesses in Ireland. Our platform is equipped with the following features to simplify the process:
- iXBRL Tagging Automation: Our software automatically tags financial data in compliance with the Irish Financial Reporting Taxonomy, reducing the manual effort and complexity involved in the filing process.
- Seamless Integration: Our tools integrate directly with your financial reporting systems, allowing for easy data transfer and accurate iXBRL tagging.
- Comprehensive Filing Support: We offer full support throughout the filing process, from data collection and tagging to submission and validation, ensuring compliance with all Revenue requirements.
- Real-Time Monitoring and Updates: Stay up-to-date with changes to the Revenue Commissioners’ regulations and ensure your iXBRL filings remain compliant as new updates and standards are introduced.
Get Started with iXBRL Filing
Ensure your company is fully prepared for the iXBRL filing mandate and streamline your compliance process today. Our experts are ready to help you navigate the complexities of iXBRL filing and ensure your financial statements meet all of the Revenue Commissioners’ requirements.
For more information on iXBRL filing or to request a consultation, Contact Us or Schedule a Demo today.
Key Benefits of iXBRL Filing
- Automated and Efficient: Reduce the manual effort involved in financial reporting with automated iXBRL tagging.
- Enhanced Accuracy: Minimize errors with our accurate tagging and validation tools.
- Compliance Assurance: Ensure full compliance with the Revenue Commissioners’ filing requirements.
- Faster Filing Process: Expedite your corporation tax return submissions with iXBRL-compliant financial statements.
Stay ahead of the curve with our cutting-edge iXBRL filing solutions, designed to simplify your compliance journey and ensure timely, accurate submissions. Partner with us today to streamline your financial reporting and stay fully compliant with Ireland’s mandatory iXBRL filing requirements.
Requirement:
Filing of financial statements in iXBRL format is mandatory for all corporation tax payers with the exception of companies who meet all three of the following criteria:
- Balance sheet total ≤ €4.4 million;
- Annual turnover ≤ €8.8 million annually; and
- Average number of employees ≤ 50.
Compliance Deadline:
Irish Revenue’s iXBRL mandate applies to financial statements for accounting periods ending on or after December 31, 2012.
Central Bank of Ireland (CBI) XBRL
The Central Bank of Ireland (CBI) affirms that Bank and Investment Firm Resolution Fund (BIFR) reporting is switching to XBRL. This fund was established by the Bank in 2015 to provide for resolution actions in the event of a failure of a credit institution or investment firm, excluding larger institutions that fall under the scope of the EU’s Single Resolution Board – which also collects data in XBRL.
