Company Tax Obligations

Corporate Tax Rate

The standard corporate tax rate in Ireland is 12.5% for trading income. This rate applies to most companies, regardless of their size or industry. Certain activities, such as income from passive investments, may be subject to different tax rates.

Capital Gains Tax

Companies in Ireland are subject to capital gains tax on gains arising from the disposal of assets. The current rate for capital gains tax is 33%.

Research and Development (R&D) Tax Credit

Ireland offers an R&D tax credit to companies that engage in qualifying R&D activities. The R&D tax credit is 25% of eligible R&D expenditure, which can be used to offset against the company’s corporation tax liability or claimed as a cash refund for companies with no tax liability.

Foreign Dividend Withholding Tax

Ireland operates a participation exemption regime for dividends received from foreign subsidiaries. Generally, dividends received by an Irish company from another EU country or a country with which Ireland has a double tax treaty are exempt from withholding tax.

Tax Incentives

Ireland offers various tax incentives to promote specific activities and industries. These incentives include the Knowledge Development Box, which provides a reduced tax rate of 6.25% for income derived from qualifying intellectual property, and the Employment and Investment Incentive (EII), which provides tax relief for investments in certain qualifying Irish businesses.

Tax Compliance and Reporting

Irish companies are required to maintain proper accounting records and prepare financial statements in accordance with Irish accounting standards. They must also file annual tax returns, including a corporation tax return, with the Irish Revenue Commissioners. Companies are responsible for calculating their tax liability, making tax payments, and submitting relevant tax forms and disclosures.