Taxation of Foreign Companies in Ireland

Updated on Monday 05th December 2022

Rate this article

based on 2 reviews.

Foreign companies, opening a branch or a subsidiary in Ireland, are the subject of the same taxation rules as an Irish company. However, differences may appear, according to the legal entity representing the company, but also on the business industry, as certain tax exemptions are offered by the Irish government. If you want to find out more on the tax exemptions applied in Ireland, our Irish law firm can provide you with further information on the topic.

Taxes paid by foreign companies in Ireland

The main taxes paid by a foreign company are the following:

corporate tax – a tax of 12.5% is applied to revenues from trading income (commercial activities with goods and services), while non-trading income (investment and rental income) is taxed at a rate of 25%. For certain industries, such as mineral and petroleum activities, there is a special tax regime and our Irish lawyers can present the legal basis on which these industries operate.
value added tax (VAT) – a VAT of 23% is applied to all business activities in Ireland, but certain industries operate with a lower VAT, of 9%. Our Irish law firm can offer you a detailed list of industries to which the VAT of 9% is applied.
pay related social insurance (PRSI) – this tax is paid by the company for each employee’s salary. The PRSI in Ireland is established according to the salary gains, and if an employee earns less than 365 EUR per week, the employer must pay a 8.5% PRSI rate; if the gain per week is above the 365 EUR, the PRSI rate is of 10.75%.
relevant contract tax – applicable where there is a subcontractor which performs operations in the business sectors of construction, forestry or meat processing.

If you need tax advice and planning services for your business in Ireland, our Irish law firm is at you disposal.

Taxation on the dividends in Ireland

A foreign company will also be taxed on the dividends resulted from the business activity in Ireland and, if in your company less than 5% of the holding rights are held by an Irish company, the dividends will be taxed at a rate of 12.5%.

Non-resident companies operating in the country can rely on the services offered by our team of Irish accountants. We have extensive experience in working with foreign corporations in need of tax advice and looking to fully meet the Irish tax compliance requirements. Contact us for more information on the taxes on corporate income for foreign companies, as well as our full range of services.

If you are a foreign investor, interested in opening a company in Ireland, please contact our Irish lawyers, who will present to you the relevant information of the Irish taxation system for foreign companies.