Ireland

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:

TAXES - ACCOUNTING

 

 

Corporate tax

Tax rate for resident companies

Since January 1st, 2003, the standard rate of corporation tax on trading income is 12.5%.
A 25% rates applies to the following: certain no trading income, such as an Irish rental and investment income; foreign income unless the income is part of an Irish trade; and income from "working minerals" (broadly defined), petroleum activities and dealing or developing land other than construction operations (for the taxation of construction-operations).
A 10 % reduced tax rate applies to certain income from the sale of goods manufactured in Ireland and from some service activities.

   
Tax rate on long-term capital gains Capital gains are taxable at 20%.
   
System governing groups of companies and dividends paid by subsidiaries to their parent companies Dividends paid to non-resident companies:
No withholding tax
Dividends paid to resident companies:
20% withholding tax not in full discharge giving right to an attributable tax credit on the income tax.
   
Tax rate on branches The 12.5% corporate tax is also assessed on Branches.




Income tax

Fiscal year The fiscal year begins on January 1st and ends on December 31st of the same year.
   
Income tax rate In 2005:
From 1 EUR to 32,000 EUR 20%
Beyond 32,000 EUR 42%
The married taxpayers are separately taxable.
   
Tax deductions or other allowances The deductible items depend on the nature of the income. Only certain expenses are deductible, for instance interest on moneys borrowed to acquire, improve or maintain the property, insurance or other repairs.
Certain incomes are exempted: income from commercially managed woodlands, income from certain patents which a resident has developed in Ireland, etc.



VAT rates

Standard rates 21%
   
Reduced rates A 13.5% rate applies to certain supplies, including buildings, building work, domestic fuel and restaurant meals.
A 4.4% rate applies to supplies of livestock by unregistered farmers to registered businesses within the EU.
Zero-rating applies to export, food, children's clothing and the rendering of services outside of Ireland.
Items including banking and insurance services, medical and educational services, and the letting of immovable property under leases of less than ten years are exempted.



Other important taxes


Name of tax
Rate
Land taxes  
Variable rates according to local governments  
Inheritance and gift tax  
20%  


 

Accounting

Introduction
The Irish accountancy in Ireland is based on the principle of "True an Fair View", which corresponds to the representation of the accurate image of the financial status of the company.


General accounting principles
:.

Obligations and publications
Public companies quoted in the Stock Exchange, as well as companies with foreign capital have to produce their financial statements according to English laws.

Certification and auditing
All the companies subjected to the "Irish Companies Act" have to be audited annually.
The audit is established according to the rules of audit regulations from the "Auditing Practices Board".

Professionals and representative organizations
The more important professional body of chartered accountants in Ireland is the ICAI : "the Institute of Chartered Accountants" which regroups 10,500 members, then comes the CIMA : "the Chartered Institute of management Accountants" ( 1,800 members), the ACCA "the Chartered Association of Certified Accountants" ( 3,500 members) and the ICPAI: "the Institute of Certified Public Accountants in Ireland" ( 1500 members).



Useful links
For further information:
- the Irish Revenue Commissioners;
- the Guide to tax and financial incentives in Ireland

Last modified in January 2007
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