Tax Structures in Ireland

1. Introduction

The Irish taxation system offers a number of incentives to foreign investors particularly in the manufacturing and financial services industries. These incentives centre around a reduced corporation tax rate of 10% on profits generated by companies engaged in qualifying manufacturing activities, and financial or aviation companies located in the International Financial Services Centre in Dublin or in the Shannon Airport Zone.

Before outlining the reliefs available, the ambit of the charge to corporation tax generally is examined below.

2. Charge to Corporation Tax

In general corporation tax is charged at 38% on the profits of a company which arise in an accounting period. These profits include income from the trade carried on by the company and any chargeable gains other than those arising from development land.