Ireland's Special Tax Rates


As a developing nation Ireland enjoys a unique concession from the European Union allowing it to offer the lowest Corporate Tax Rate in Europe (12.5%). Coupled with a Tax Treaty with the US this is a key incentive for American companies to locate in Ireland.

Corporate Tax Rates (%)

(Source: Shannon Development)

The trouble is that the British are complaining and agitating for the "upward harmonization" of the Irish tax rate. They claim Ireland has now outstripped them in income per capita, which it has.

If the British can argue that Ireland's privileged tax status is being abused in any way it would help their case enormously in Europe. It is therefore vital that only American companies with a legitimate physical presence in Ireland and who create jobs there, get to enjoy this special low tax rate.

I fear that San Diego companies, under the guise of a "Sister City" organization, may be obtaining "inside" advice on how to run profits through a Shannon-based company with only nominal investment or physical presence in Ireland.

Pat Flannery - April 2005