Ireland: Tax & Auditing Requirements

A very useful guide on the Irish tax code is here.

The standard company (corporation) tax rate for Ireland is 12.5% for most income (trading income). This is lower than almost all developed countries, for example, Singapore’s 17% or the UK’s 19%. Tax rates are 25% for non-trading (passive) income such as investment income and rental income. (Source)
Many companies come to Ireland to take advantage of Ireland’s low corporate taxes and Ireland is widely considered a tax haven. Indeed, 80% of Irish corporate tax comes from foreign multinationals, and 14 of Ireland’s largest 20 companies are US-based. (Wikipedia)

Ireland also has generous tax policies, including an effectively zero tax rate for foreign dividends and a 25% R&D tax credit, many geneous laws relating to withholding taxes, as well as agreements with many nations to reduce double-taxation for money that will be taxes in Ireland as well as another foreign information. Interest on business loans is tax-deductible, and tax relief is available for capital allowances for plants, machinery, and industrial buildings.

Ireland has a Knowledge Development Box (KDB) tax relief program, which “applies to income from qualifying patents, computer programmes and certain other certified intellectual property (IP)”. Such income may be entitled to a deduction equal to half of its qualifying profits; that is, its qualifying profits will be taxed at 6.25%.(Source)

Ireland also has a tax-relief program for start-up companies but it is set to expire 31 December, 2018. More details are here.

See the section on tax deductions here for a list of tax deductions in Ireland.

Note that after the corporate tax will still be liable to income tax when converted to income tax. Income tax rates for Ireland are detailed here.

Taxes Relating to Virtual Currencies

“Legitimate stakeholders that own, transact or facilitate virtual currency transactions need to be aware of their tax obligations. For example, investors in, and miners of virtual currencies may need to assess their capital gains tax liabilities… Similarly, businesses that accept virtual currencies as payment may also need to consider corporation tax implications (and the legal framework supporting their claim as trusts, sole traders etc.). Meanwhile, individuals that own virtual currencies for use as a medium of exchange may be subject to VAT on any purchases they undertake.” (Source: Irish Discussion Paper on Virtual Currencies and Blockchain Technology)

Audit Requirements

According to the Companies Act 2014, companies must attach a statutory auditor’s report with every annual report of financial statement. Only companies that qualify as a ‘small company’ or ‘micro company’ qualify for an audit exemption. Companies eligible for an audit exemption must file. (Source) More information is here.


Previous Section Next Section

Have a comment, edit, or item to add? Share your thoughts by commenting below!

comments powered by Disqus