Ireland & Taxation

  • Corporation tax: One of the most favorable taxation locations in the world: a 12.5% Corporation Tax rate on trading activities.
  • Tonnage tax: The most competitive, business friendly tonnage Tax for shipowners and managers in the European Union.
  • Holding Company: An excellent holding company location
  • Double Taxation Agreements: A huge range of double taxation agreements

Corporation Tax: The Basics

The corporate tax rate in Ireland is 12.5%. Corporation tax is charged on the profits of a company. "Profits" for corporation tax purposes consist of income (business or trading income comprising active income).

Investment income comprising passive income is taxed at 25% and capital gains tax is 25%

One of the key benefits of Ireland's corporate taxation has been the stability and consistency of taxation policy by successive governments over the past 20 years. Successive governments have consistently reduced the taxation burden on companies and individuals over the past 20 years. The current corporation tax rate of 12.5% has been negotiated with the European Union and has been agreed to run to 2025.

Click here to find out more about taxation in Ireland

Click here to see a comparison on corporate tax rates worldwide

Irish Tonnage tax

Irish tonnage tax was introduced in 2002 to offer shipping companies a competitive, stable and flexible corporation tax regime. Tonnage tax is a misnomer since it is not a tax in itself, rather it takes a 'notional' profit and taxes it under the normal Irish corporation tax rate of 12.5%. The notional profit is calculated according to the tonnage of the vessel, hence the title 'tonnage tax'.

Irish Tonnage Tax, Opportunities for the international Shipping Industry, The IMDO's most recent report on the Irish Tonnage Tax Regime is available to download here.

Irish Tonnage Tax Calculator

To calculate your tonnage tax, click here or contact us on +353 1 476 6500 or e-mail