Ireland represents a strategic European base due to our pro-business, low corporate tax environment and skilled workforce. As a result of these and other factors, more than 1,400 multinational companies have chosen Ireland as their investment platform.
Ireland’s low rate of corporation tax - 12.5%, holding company regime, Research and Development (R&D) tax credit, Knowledge Development Box (KDB) and Intellectual Property (IP) relief makes it a very popular choice for inward investment. Companies based in Ireland and involved in a wide range of activities view it as a uniquely attractive location in which to do business.
Ireland remains committed to its corporation tax rate of 12.5%, applicable to Irish trading profits. Our right to maintain this rate, notwithstanding the requirement to introduce stringent measures elsewhere, has been consistently acknowledged in Europe. In our view, this certainty is a critical development and will help secure Ireland’s future as a leading destination for Foreign Direct Investment (FDI).
Changes in the global tax landscape, with an increasing alignment between taxable profits and real substance, will make Ireland an ever more compelling location in which to do business.
Ireland has also won a resounding vote of confidence from Forbes, which named it one of the Best Countries For Business. The magazine placed Ireland eleventh in its 2019 ranking of 161 nations.
In 2020, Ireland was ranked the eighth easiest place in the world to do business, according to TMF Group’s Global Benchmark Complexity Index.
Grant Thornton has prepared this guide to set out the tax advantages of Ireland as an investment platform and a jurisdiction which facilitates FDI.
This guide has been prepared for the assistance of those interested in doing business in Ireland and includes legislation in force at 1 January 2021. It does not cover the subject exhaustively but is intended to answer some of the important and broad ranging questions that may arise. When specific issues occur in practice, it will often be necessary to refer to the laws and regulations of Ireland and to obtain appropriate accounting, tax and legal advice.