🇮🇪 Tax Overview — Ireland
Corporate tax, VAT/GST, and key tax information for businesses operating in Ireland.
Tax Treatment by Structure
Private Company Limited by Shares (Ltd)
Trading profits are taxed at 12.5%, one of the lowest rates in the OECD. Non-trading (passive) income such as investment income, rental income, and certain foreign-source income is taxed at 25%. A Knowledge Development Box (KDB) offers an effective rate of 6.25% on qualifying IP profits. Ireland has no withholding tax on dividends paid to EU parent companies under the EU Parent-Subsidiary Directive, and an extensive treaty network reduces withholding taxes on outbound payments. The R&D tax credit provides a 25% credit on qualifying expenditure. From 2024, a 15% global minimum top-up tax applies to companies within groups with consolidated revenue exceeding €750 million (Pillar Two).
Designated Activity Company (DAC)
Taxed identically to an Ltd company. Trading income is subject to the 12.5% corporation tax rate and non-trading income to the 25% rate. DACs used as SPVs in securitisation transactions can qualify for Section 110 treatment, where taxable profits may be reduced to near zero through the deductibility of profit-participating notes. The same R&D tax credit (25%), Knowledge Development Box (6.25% effective rate), and EU directive benefits apply. DACs in regulated financial services may also benefit from specific reliefs for qualifying fund management and aircraft leasing activities.
This content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.