Ireland Tax Guide


Currency: Euro

Foreign Exchange Control: None

Accounting Principles: IAS/IFRS. Financial statements prepared annually.

Business Entities: Principally, public and private limited liability company, partnership, sole proprietorship and branch of a foreign corporation.

Corporate Taxation

Residence: If managed and controlled in Ireland or, in certain circumstances, if it is Irish-incorporated.

Basis: Residents are taxed on worldwide profits. Non-residents are taxed on Irish-source income.

Rate: 12.5% for trading income and 25% for non-trading income. Certain dividends taxed at 12.5%.

Foreign Tax: Foreign tax may be credited against Irish tax on the same profits limited to the Irish tax payable. In certain circumstances there are credits for dividends from EU member states.

Other: Various R&D incentives. Exemption for start-up companies up to specific limits. Relief on certain capital expenditure on intangible assets.

Tax Year: The shorter of 12 months or the period of accounts.

Personal Taxation

Residence: Residents and ordinary residents taxed on worldwide income and gains. Non-residents taxed on Irish-source income and gains from immovable Irish property (resident if > 6 months in a tax year or combined presence > 279 days over a tax year and the preceding tax year).

Rate: Progressive up to 41%. In addition there is a Universal Social Charge which is progressive from 2% – 7%.

Capital Gains: 33%

Other: Stamp duty: 1%-2% on property

Capital acquisition tax: 33%

Real property tax: ‘rates’ on occupation of real property.

Inheritance tax: 33%

Social Security: PRSI contributions paid by employees and employers based on salary.

VAT: Standard rate 23%

Member Firm: Eisner Amper Ireland

Frank Keane: