Ireland Tax Regime

The key features of Ireland’s Tax Regime

  • Corporate tax rate of 12.5% for active business.
  • 25% Research & Development (R&D) Tax Credit
  • An Intellectual Property (IP) regime which provides a tax write-off for broadly defined IP acquisitions.

Ireland’s Tax Regime also offers:

  • an attractive holding company regime, including participation exemption for gains on disposals
  • of most shares;
  • An effective zero tax rate for foreign dividends (12.5% tax rate on qualifying foreign dividends, with flexible onshore pooling of foreign tax credits).
  • An EU-approved stable tax regime, with access to extensive treaty network and EU Directives.
  • Generous domestic law withholding tax exemptions.

These features all go to make Ireland one of the top global investment locations.

Ireland's Research and Development Tax Credit
Ireland has had an R&D Tax Credit scheme since 2004. Qualifying R&D expenditure will generate a 25% tax credit for offset against corporate taxes in addition to a tax deduction at 12.5%. Its purpose is to encourage both foreign and indigenous companies to undertake new and/or additional R&D activity in Ireland
 

Holding Companies
Thanks to its attractive tax, regulatory and legal regime, combined with its open and accommodating business environment, Ireland’s status as a world-class location for international business is well established.

In recent years Ireland has increasingly emerged as a favoured onshore location for MNCs establishing regional or global headquarters to manage the profits, functions,and shareholdings associated with their international businesses.
 

 

Ireland’s main tax advantages for holding companies are:

  • Capital gains tax participation exemption on disposal of qualifying shareholdings;
  • Effective exemption for foreign dividends via 12.5% tax rate for qualifying foreign dividends and a flexible foreign tax credit system;
  • Double tax relief available for tax suffered on foreign branch profits and pooling provisions for unused credits;
  • No withholding tax on dividends paid to treaty countries (or intermediate non-treaty subsidiaries);
  • Access to double taxation agreements to minimise withholding tax on inbound royalties and interest, and additional domestic provisions to minimise withholding tax on outbound payments;
  • Extensive double taxation agreement network and access to EU directives
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  • 28-32 Upper Pembroke Street,
  • Dublin 2,
  • Ireland

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