Corporate tax rates in Ireland

Ireland is one of the most targeted countries by foreign investors due to its significantly low tax rate. Ireland’s corporate tax rate is about half the tax rate of the majority of most developed countries in the Organization for Economic Cooperation and Development.
The Irish Corporate Tax can be classified into 3 rates:

  • 6.25% Corporation Tax - this one relates to the profits under the Knowledge box; 
  • 12.5% Corporation Tax - only pertains to, “active” or trade income–the profits that you get from selling or trading your services or products;
  • 25% Corporation Tax - only pertains to “passive” or non-trading– that is the income you receive from non-trading investments or rentals. 

The corporation tax is charged on the profits in a company’s accounting period within 1 month. In the case that the tax rate changes in the accounting period, profits would also be calculated on a time basis and charged accordingly.
Soon after the registration of a company, it is mandatory to file all online payments and returns through the Revenue. You will be appointed a Tax Reference Number to use when you are filing your tax returns or when you trade. Our specialists will gladly help you with all your administration, accounting and tax planning needs.
Ireland’s Corporate Tax System
The tax residence determines a company’s degree of liability to the Irish Corporation Tax. For instance, Irish companies are accountable for corporation tax on all their global income and capital gains. To be considered a tax residence in Ireland, a company should have its central control and management located within Ireland or it should be incorporated in Ireland. However, there are a few exceptions for a few companies which are already established in Ireland. 
In the case that you establish a company in Ireland, but you do not meet the two aforementioned conditions, “substance” and “management and control” requirements you wouldn’t qualify for the much lower 12.5% tax but the 25% corporation tax.

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