Ireland’s Corporate Tax Landscape 

Ireland’s corporate tax landscape has seen notable updates recently.

As of 2024, Ireland continues to apply its long-standing 12.5% corporate tax rate for the vast majority of businesses. This rate has been a cornerstone of Ireland’s strategy to attract foreign direct investment for over two decades. However, a significant change has been introduced for large multinational corporations.

Starting from December 31, 2023, Ireland has implemented the OECD’s Pillar Two rules, which enforce a minimum effective corporate tax rate of 15% on companies with global revenues exceeding €750 million. This affects around 1,600 multinational groups operating in Ireland.

The primary aim of this move is to address tax challenges arising from the digitalisation of the global economy and to provide a stable and fair international tax framework. Read more about it here at​ Search for services or information and at RSM Global.

In addition to these changes, Ireland is enhancing its tax incentives to boost business investments. The Research & Development (R&D) tax credit has been increased from 25% to 30%, benefiting both large and small firms.

Furthermore, Ireland is considering transitioning from its current “worldwide” method of double tax relief to a “territorial” system. This shift is expected to simplify the tax system by exempting foreign dividends and branch profits from Irish tax, aligning Ireland’s practices with those of other OECD and EU countries.

These changes reflect Ireland’s commitment to aligning with global tax reforms while maintaining a favorable environment for businesses of various sizes.

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