Paying Taxes in Ireland

1. What is the corporate tax in Ireland?
In Ireland companies pay corporate tax levied on company profits. The tax is charged for both the company's income and gains and its rates differ. 12, 5% tax is charged on trading income, 25% for non-trading income and 10% for companies activating in manufacturing.

2. What is the VAT in Ireland?
The Irish VAT is charged on goods and services at a rate of 21%. It applies for most goods and services, but exemptions are made in certain cases.

3. How can the VAT be refunded in Ireland?
Companies that pay and charge VAT are able to recover the invested amount in Ireland. In order to do so the business owners need to sign an application for VAT refund and submit it to the Irish Tax Authorities. The application is accepted if the VAT refund is claimed on taxable activities and provided original invoices are submitted. In case the application is accepted, the refund is granted in a maximum period of 6 months since the application has been submitted.

4. What is the dividend tax in Ireland?
Since 2007 the Irish Tax Law imposes a dividend tax rate of 20% for most companies.

5. Are there any incentives for foreign investors in Ireland?
Entrepreneurs seeking to invest in Ireland find a welcoming environment and plenty of advantages. Beside the geographical location of the country and the abundance of natural resources, Ireland offers a skilled workforce and generous tax laws. Also the Irish government is keen to encourage foreign investment offering preferential loans for investors involved in manufacturing, health, education and infrastructure. Foreign entrepreneurs benefit from a non-discriminatorily treatment and there is no negative difference made between a foreign company and a local one.

6. Why do I need a local accountant for my Irish business?
In order for a company to function legally and in order an entrepreneur must work with an accountant. There are plenty of methods through which a business owner may carry out the company's financial dealings, but the best suited method is by hiring a local accountant. The extended experience means a lot of time and money saved. A local accountant offers a better understanding of the financial environment of Ireland and in most cases may charge less for the same result as a foreign accountant.