Ireland's competitive tax regime is generally viewed as the leading positive attribute for foreign direct investment (FDI). Ireland's 12.5% corporate tax rate on trading income is one of the lowest in the world and the Irish government is committed to retaining what is widely regarded as the cornerstone of the country's economy.
Trading profits include an extensive range of commercial activities, such as intellectual property and supply chain management. There are no restrictions on repatriation of earnings, capital, royalties or interest and there are no restrictions on the import of capital to Ireland.
To avail of the 12.5% corporate tax rate, a company must be tax resident in Ireland. There are a number of criteria for establishing tax residency but key among them are that the company's central management and control is located in Ireland and that major policy decisions are determined by the board of the Irish company. For more information on tax residency, please see our Tax residency page.
Ireland's extensive double tax treaty network also facilitates international business by providing for the elimination or mitigation of double taxation. Where a double tax agreement does not exist, unilateral provisions within domestic Irish tax legislation allow credit relief against Irish tax for forgoing tax paid in respect of certain types of income.
Ireland has an extensive and expanding double tax treaty network and has signed agreements with 70 countries.
For further information, please see the Irish Revenue Commissioners website.