Republic of Ireland

Republic of Ireland

Dublin

The Republic of Ireland became a member of the EU in 1973. Ireland is a co-founder of the Council of Europe and OECD. The national currency of Ireland is Euro; English and Irish are the two official languages in the Republic of Ireland. 

Ireland has signed 74 double taxation prevention treaties, 73 of which are currently in force, as the Treaty with Ghana has not yet entered into force. 

In Ireland, there are two corporate tax rates: 12.5% for trading activities (active income), and 25% for other cases (passive income). Dividends received by an Irish company from an Irish company are not subject to tax, while dividends received by an Irish company from a foreign company are subject to corporate tax at the rate of 25%. A 12.5% rate applies where an Irish Company receives dividends from a EU Company, or from a 

Company registered in country, that signed double taxation prevention treaty with Ireland, and upon condition, that this company has it’s profit from trading activities. 

Dividends paid to another Irish Company are exempt are exempt from withholding tax. Dividends paid to non-resident legal entities, and individuals - residents/non-residents) are subject to withholding tax of 20%, unless the rate is reduced under a double taxation prevention treaty or dividends are exempt from taxation in accordance with the EU Parent-Subsidiary Directive. 

The standard VAT rate in Ireland is 23%. There are also reduced rates of 0%, 4.8%, 9% and 13.5%. Value-Added Tax (VAT) registration is obligatory when an annual turnover of taxable goods in a Company exceeds 70,000 Euro, while threshold for taxable transactions is 35,000 Euros. 

All VAT registered Companies are required to prepare and submit VAT returns on a bi-monthly basis. 

Irish Companies are required to maintain accounting records, prepare financial statements and submit them together with the annual (non-financial) report annually.