Having just spent 6 weeks in Ireland for my summer holidays, it’s hard to avoid the issue of tax in The Emerald Isle.
Most of the natives are pretty perturbed by the high rates of personnel income tax. With a personnel income tax of 40% on earning of 33,800 and above; the natives describe it as crippling and I have to say from an expats point of view, it does look pretty frightening.
I live in Singapore and the personnel income tax that most locals and expats pay is no more than 12%. While the situation looks pretty dismal for the individual who is out earning a hard day’s pay in Ireland, corporation tax is at the other end of the scale and makes Ireland very attractive for company set up and foreign investment.
Corporate Tax Advantages
Corporate tax in Ireland is fixed at 12.5% for a trading company and at 25% for passive income. This is one of the lowest rates in Europe and makes Ireland an ideal country for company set up and for company subsidiaries.
For the past several years, another tax exemption known as the three year tax exemption is also a huge incentive for company incorporation in Ireland and applies to qualifying new companies. This allows a company incorporated in Ireland to be completely tax free for 3 years if it meets the qualifying terms as set out by the Finance Act 2011.
While I was in Ireland, there was also some discussion on the increase in the Artists Exemption Tax. According to the Irish Revenue Commissioners Office “For 2015 and subsequent years the first €50,000 per annum of profits or gains earned by writers, composers, visual artists and sculptors from the sale of their work is exempt from income tax in Ireland in certain circumstances.”
More Information on these 2 tax exemptions and many other company tax exemptions can be obtained from the Irish Revenue Commissioners website.
Ireland has a highly qualified workforce and one of the major advantages of set up in Ireland is the pre-existing highly qualified and experienced workforce that has been categorized in the highest level of labour productivity in Europe.
The OECD defines labour productivity as “the ratio of a volume measure of output to a volume measure of input”. Half of the Irish workforce is under 35 years of age and according to the IDA, the organization for industrial development in Ireland “Ireland ranks 1st in the world for the availability of skills and 4th for the quality of its education system”.
Infographic by Monsieur Fou (Own work) [CC BY-SA 3.0], via Wikimedia Commons
Company Set Up
Company set up in Ireland couldn’t be easier and with the huge tax incentives and quality workforce, it is a popular and exciting place to set up. Healy Consultants Group PLC have been incorporating in Ireland for many years and have in-house experts to guide you through the myriad of tax advantages and optimum structures. To contact us, please email us at
Irish Company Set Up: https://www.healyconsultants.com/ireland-company-registration/
Irish Revenue Commissioners: https://www.revenue.ie/en/tax/it/reliefs/artists-exemption.html