Ireland is one of the longest established low tax jurisdictions within the EU. It holds certain attractions for international businesses, including a 12.5% corporation tax rate for profits from Irish trading.
Ireland has an extensive and growing tax treaty network. This reduces and, in some cases, completely eliminates withholding taxes on in-bound dividends, interest and royalty payments. Double tax relief is available for withholding taxes on such income against an Irish entity's corporation tax liability.
Other notable features of this jurisdiction include:
- No transfer pricing or controlled foreign company rules;
- Exemptions from capital gains tax for the disposal of qualifying participations; and
- No incremental Irish tax from dividends from foreign subsidiaries that are paid from income that has been subject to an effective tax rate of 25% or more.
Pearse Trust has over two decades' experience of advising international businesses on how best to benefit from this competitive tax regime.