Ireland has for many years had a flat 12.5% corporate tax rate applicable to Irish trading profits. This has been augmented by the introduction of a 0% rate for new trading companies for the first three years of trading subject to certain conditions. There is a higher rate of corporation tax of 25% for non trading income such as rent.

Corporation Tax in Ireland is charged on all profits, wherever arising, of companies resident in the State, and profits of non-resident companies in so far as those profits are attributable to an Irish branch or agency, unless certain exemptions and reliefs can be availed of.

Ireland’s taxation system contains many incentives used in attracting overseas Investment to Ireland some of which make it easier to do business here. A common reason cited for locating business in Ireland has often been Ireland’s favourable corporate tax rate.

Clearly Ireland continues to be committed to its favourable corporation tax regime. The standard rate applies to trading profits without limit, which has led to many multinational corporations locating here. It has also shown its commitment to low corporation tax by extending the 3 year start up exemption