Corporate tax system in the Republic of Ireland

Brexit has driven increased UK corporate interest in establishing an Irish presence. Ireland has an open economy which has consistently attracted significant inward investment from multinationals. The main driver of this investment is a stable and competitive tax regime based on clear and well-established rules.

Irish corporate tax regime

A company is generally regarded as Irish tax resident if it is managed and controlled in Ireland. An Irish incorporated company is regarded as Irish tax resident subject to one exception: if under the provisions of a double tax treaty an Irish incorporated company is regarded as tax resident in another territory it will not be regarded as Irish tax resident.

Corporation tax is charged on the worldwide profits of companies that are tax resident in Ireland. ‘Profits’ for this purpose consist of income – business or trading income comprising active income and investment income comprising passive income...