These features all go to make Ireland one of the top global investment locations.
In the following table we compare Ireland’s corporate tax rate with the rates of other top global investment countries.Corporate Tax Rate - A corporate tax rate of 12.5% applies to all corporate trading profits % Corporation Tax Headline Rates
Source: PricewaterhouseCoopers, 2012
* The marginal federal corporate income tax rate on the highest income bracket of corporations (for 2011, USD 18,333,333 and above) is 35%.
** Berlin rate used for illustrative purposes. Corporation tax rate varies depending on location.
*** This tax rate illustrates the effective tax rate for the Tokyo area where a company has paid-in capital of more than JPY 100 million.
Ireland has had an R&D Tax Credit scheme since 2004. Qualifying R&D expenditure will generate a 25% tax credit for offset against corporate taxes in addition to a tax deduction at 12.5%. Its purpose is to encourage both foreign and indigenous companies to undertake new and/or additional R&D activity in Ireland.Holding Companies
Thanks to its attractive tax, regulatory and legal regime, combined with its open and accommodating business environment, Ireland’s status as a world-class location for international business is well established.
In recent years Ireland has increasingly emerged as a favoured onshore location for MNCs establishing regional or global headquarters to manage the profits, functions,and shareholdings associated with their international businesses.Ireland’s main tax advantages for holding companies are: