A company that is resident in Ireland is taxable on its worldwide profits. A company that is trading in Ireland through a branch or agency is only liable in respect of the profits that are attributable to that branch or agency.
Key company tax rates
There are three main rates of corporation tax:
- 12.5% for trading income
- 25% for non-trading income (e.g. investment income, rental income)
- 6.25% for profits earned from patented inventions and copyrighted software
There are a number of specifics relating to the calculation of profits and how loses are treated, the repatriation of profits from Ireland, withholding taxes, etc. For greater detail on company taxes please download our free guide – Investing in Ireland.
An individual’s liability to Irish income tax depends on their residence status, which is determined by the number of days that they are present in Ireland in a tax year. You will be resident in Ireland for a tax year in either of the following circumstances:
- If you spend 183 days or more in Ireland during a tax year, or
- If you spend 280 days or more in Ireland over a period of two consecutive tax years, you will be regarded as resident for the second tax year
Persons who are resident and domiciled in Ireland for tax purposes are subject to tax on their worldwide income. Non-Irish-domiciled individuals who are resident in Ireland are taxable in Ireland on Irish source income (including foreign employment income referable to duties exercised in Ireland) and foreign investment income where that income is remitted to Ireland.
Employees moving to Ireland may be able to claim reimbursement of some relocation expenses tax-free or be eligible for tax-free subsistence for temporary assignments. If assigned to work in Ireland on a permanent basis, employees may be eligible for a tax-free exemption on 30% of their employment income over €75,000.
Companies may transfer the R&D credit to key employees who have been involved in R&D activities, subject to certain conditions.
For the full range of tax deductions and credits available to individual employees relocating to Ireland, download our free guide Investing in Ireland