Ireland’s Tax System: Low Corporate Rate, Progressive Personal Taxes, 23% VAT

Republic of Ireland Tax Snapshot (2024)

Corporate Tax

• 12.5% on trading income (manufacturing, services).
• 25% on non-trading (passive) income.
• 6.25% effective rate for qualifying IP income (Knowledge Development Box).
• Key FDI magnet—Google, Apple, Pfizer, Intel European HQs.

Personal Income Tax (PAYE)

• Tax credits: Single Person €1,875; Employee €1,875; Earned Income €1,875 (max).
• USC (Universal Social Charge): 0.5%–8% on gross income (progressive).
• PRSI (Pay Related Social Insurance): 4% (employee), 11.05% (employer).

Value-Added Tax (VAT)

• Standard: 23% (most goods/services).
• Reduced: 13.5% (hospitality, tourism, building), 9% (newspapers, sports), 4.8% (livestock).
• Zero: Exports, children’s clothes/footwear, oral medicines.

Capital Gains & Inheritance

• CGT: 33% (annual exemption €1,270).
• CAT (Capital Acquisitions Tax): 33% on gifts/inheritance > thresholds (Group A: €335,000 parent→child).

International Context

OECD average corporate ~21%; Ireland’s 12.5% remains below new 15% global minimum (Pillar Two)—but KDB and R&D credits keep effective rates competitive. Personal tax burden mid-range for EU; high earners pay less than France, Belgium, Germany.