Irlanda flag Irlanda: Entorn econòmic

Impostos a Irlanda

Tax Rates

Consumption Taxes

Nature of the Tax
Value-added tax (VAT)
Tax Rate
23%
Reduced Tax Rate
A 9% rate applies to newspapers and magazines, electronic newspapers, magazines and e-books, admission to sporting facilities, hairdressing services, and hospitality and tourism.

Examples of goods and services taxable at 13.5% include electricity; restaurant and catering services; repair, cleaning and maintenance services; developed immovable property; building services.

Due to COVID-19, the VAT rate for transactions such as restaurant and catering services; certain printed matter, promotion of and admission to shows, exhibitions and cultural facilities; hotel and holiday accommodation; and hairdressing services changed from 13.5% to 9% with effect from 1 November 2020 to 31 August 2022.

For an exhaustive list of VAT rates in Ireland, consult the Revenue's VAT rate database.

Other Consumption Taxes
Ireland applies excise duties on mineral oils, alcohol products (including spirits, beer, wine, cider, and perry), and tobacco products. Irish microbrewery can enjoy reduced excise duty rates (depending on production quantities). For more information, please refer to the Irish Tax and Customs website.

An environmental tax of EUR 22 cents per bag is imposed upon consumers provided with a plastic bag. A carbon tax is levied on mineral oils, generally at a rate of EUR 41 per tonne of CO2 emitted. A tax also applies on sugar-sweetened drinks (20 cents/litre if the sugar content is five or more grams of sugar per 100ml and 30 cents/litre for drinks with eight or more grams of sugar per 100ml).

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Corporate Taxes

Company Tax
12.5%
Tax Rate For Foreign Companies
A company that resides in Ireland for tax purposes is subject to corporate taxes on its global income. Non-resident companies are subject to corporate income tax only on their Irish-source income.
With some exceptions, a company that is incorporated in Ireland is automatically considered to be an Irish tax resident. A company is also considered to be an Irish tax resident if it is managed and controlled in Ireland.
Capital Gains Taxation
Capital gains are generally taxed at 33% (40% for the transfer of life insurance contracts and investment units held in offshore funds) with exceptions provided for qualifying gains from the sale of shares in companies that reside in the EU or in countries that have a tax treaty with Ireland. The cost of acquisition or improvement of an asset is deductible from the nominal gain. Capital assets may be transferred between Irish resident group companies without liability for capital gains tax.

A participation exemption applies to capital gains obtained by holding companies (Irish resident) on the disposal of shares in firms that are resident in Ireland, the EU or countries that have a tax treaty with Ireland. In order to qualify, the holding firm must hold a participation of at least 5% and the interest must have been held for a continuous 12-month period ending within the 24 months preceding the date of disposal.
Main Allowable Deductions and Tax Credits
Deductible expenses must be incurred wholly and exclusively for the purposes of business transactions and/or to generate revenue. As such, entertainment expenses are non-deductible. Revenue expenditure incurred up to three years before a business activity begins is generally deductible. Depreciation is non-deductible but can be offset by capital allowances. Generally, deductions can be claimed for royalties, management service charges, and most interest charges paid to foreign affiliates, provided the amounts do not exceed what would be paid to unrelated entities. Contributions to certain employee pension schemes are deductible in the year they are incurred.

Expenditure on scientific R&D and payments for the acquisition of know-how are generally deductible, as are the costs of obtaining or extending patents and obtaining and renewing trademarks. These expenses give rise to a tax credit of 25% which can be used to offset the tax debts of a firm established in the tax year during which expenses were incurred. A Knowledge Development Box (KDB) regime allows for profits from patented inventions and copyrighted software earned by a company residing in Ireland to be taxed at an effective rate of 6.25%.

Companies are entitled to a deduction, as a trading expense, for qualifying donations to approved charities, educational institutions, schools, churches, research foundations, sports bodies, and other approved organisations that satisfy certain conditions (the donations must be above EUR 250).
Local taxes, VAT not recovered and the employer’s share of social security contributions are tax-deductible.

Net operating losses can be carried forward indefinitely or be offset against other income of any nature, either in the current or preceding accounting period. Terminal losses that arise within 12 months of the date a company ceases its activities may be carried back three years.

Other Corporate Taxes
Companies may be subject to other taxes, including stamp duties (rates of 1% to 2% for transfers of residential property, 7.5% for transfers of non-residential property, and 1% on transfers of shares); local property taxes ("rates" on the occupation of commercial real property; plus a tax on residential real estate at 0.18% for real estate valued up to EUR 1 million, 0.25% for values over EUR 1 million) and industry-specific taxes such as a construction operations tax and a shipping tonnage tax (that can replace the corporate income tax). An additional "profit resource rent" tax applies to certain petroleum activities (from 25% to 40%).
A carbon tax is levied on mineral oils (e.g. auto fuels, kerosene) that are supplied in Ireland. The rates of the carbon tax on oil and gas broadly equate to EUR 41 per tonne of CO2 emitted (shall be increased to EUR 100 by 2030).

The employer contributes 11.05% of employees' salary for social security (Pay-Related Social Insurance - PRSI).

Gross premiums paid for non-life insurance policies relating to risks located in Ireland are taxed at 3% (plus 2% for the Insurance Compensation Fund), reduced to 1% for certain life insurances.

An exit tax charge applies on unrealized gains of companies that migrate or transfer assets offshore, without actual disposal, such that they leave the scope of Irish tax. The tax rate is 12.5% but is subject to an anti-avoidance provision that applies a higher rate of 33% in certain circumstances.

A capital acquisitions tax may apply on gifts and inheritances at a rate of 33%.

Other Domestic Resources
Irish Tax and Customs
Doing Business Website, Consult the Doing Business Website to obtain a summary of taxes and mandatory contributions in Ireland.

Country Comparison For Corporate Taxation

  Ireland OECD United States Germany
Number of Payments of Taxes per Year 9.0 10.1 10.6 9.0
Time Taken For Administrative Formalities (Hours) 81.5 163.6 175.0 218.0
Total Share of Taxes (% of Profit) 26.1 41.6 36.6 48.8

Source: Doing Business, Latest available data.

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Individual Taxes

Tax Rate

Single, Widowed or a Surviving Civil Partner
EUR 0 to 36,800 20%
EUR 36,801 and above 40%
Married Couples or Civil Partners (one income)
EUR 0 to 45,800 20%
EUR 45,801 and above 40%
Married Couples or Civil Partners (two incomes)
EUR 0 to 73,600 20%
EUR 73,601 and above 40%
Universal Social Charge (USC - payable on pension contributions in addition to basic tax for incomes over EUR 13,000)
EUR 0 to 12,012 0.5%
EUR 12,013 to 21,295 2%
EUR 21,296 to 70,044 4.5%
Above EUR 70,044 8%
An additional 3% USC surcharge applies where an individual’s non-PAYE (Pay-As-You-Earn) income is more than EUR 100,000 a year.
Allowable Deductions and Tax Credits
Deductions are generally provided for retirement annuities, mortgage interest, insurance (up to 10% of total income), etc. The same principles of deductibility for revenue expenditure apply to individuals and corporations. Personal allowances are also provided for the Irish taxpayer, as well as their spouses and dependents. Certain medical expenses in relation to nursing home fees can be claimed as a deduction from taxable income at the marginal rate of tax (i.e. currently 40%). Other medical expenses may qualify for tax relief at 20%.

A personal allowance is available if an individual employs a person to take care of an incapacitated relative. The individual employing the carer is entitled to a tax allowance of the actual cost of employing the carer up to a maximum of EUR 75,000, which can be claimed at the marginal tax rate.
Contributions to certain occupational pension schemes are deductible (with limits to the relief varying according to the age of the taxpayer). A personal allowance for premiums paid to an Irish Revenue-approved permanent health insurance (PHI) scheme is available. The allowance may be claimed at the marginal tax rate, with the relief capped at 10% of total income for that year.

Tax relief is available for donations by individuals to certain approved bodies (e.g. charities and educational establishments). Interest on loans for investments in rental properties is also deductible.

Several tax credits are also provided: EUR 1,700 per single person with no dependent child; EUR 3,400 for a married couple or a civil partnership; EUR 2,240 for a widowed person or surviving civil partner with no dependent child; EUR 3,300 for an incapacitated child and for a single parent with dependent child; etc.

For a full list of the rate bands and tax reliefs for the tax year 2022, consult the dedicated page on the website of the Irish Tax and Customs.

Special Expatriate Tax Regime
Non-residents are taxed at the same rates as residents, but only on their Irish-source income.

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Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed
See the list of double taxation treaties
Withholding Taxes
  • Dividends: 25%
  • Interest: 20%/33% (paid to deposit holders of certain Irish banks)
  • Royalties: 20%
Bilateral Agreement
Spain and Ireland signed a Double Taxation Treaty.

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© Export Entreprises SA, Tots els drets reservats.
Actualitzacions: September 2022

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