Favourable Tax Regime

Corporate Tax Corporate Tax Rate 12.5%

  • Ireland has one of the lowest Statutory Corporate Tax Rates in the world at 12.5%. Companies that choose Ireland as their European or International Database have been able to maximise the favourable tax regime to achieve a high rate of return on their investment
  • A rate of 25% applies to non-trading (passive) income
  • Ireland has an effective corporate tax rate (Profit Tax) of 12.3% compared to an EU average of 12.9% and 16.1% globally
  • Irish companies on average spend 80 hours complying with the tax regime compared to 105 in Australia, 110 hours in the UK, 218 hours in Germany, and 318 hours in China
  • Ireland’s world class regime offers unique opportunities to foreign investors to use Ireland as the low tax hub or indeed international or global business
  • Manageable transfer pricing rules allied to favourable provisions for IP exploitation, R&D activities and holding Companies make Ireland’s tax regime world class

Source PwC (Price Waterhouse Coopers) 

R&D Benefits

  • Refundable 25% Tax Credit (effective benefit of 37.5%)
  • Monetisation-possible repayment of excess credits over three year cycle.
  • No "base year" year limitation for new investors (i.e. full volume basis applies)
  • Possible grant aid for qualifying R&D activities

Source PwC (Price Waterhouse Coopers)