Ireland's 12.5% corporate tax rate is the number one reason US companies choose Ireland as their European base. But a low rate and actual compliance are two different things. Getting your Irish tax structure right from the start requires an accountant who has done this before — specifically for foreign-owned companies.
Registering your Irish company for corporation tax with Revenue and ensuring your annual returns are filed correctly. Ireland's 12.5% rate applies to trading profits — understanding what qualifies is where an experienced accountant earns their fee.
If your Irish operation trades above the VAT threshold, you'll need to register for Irish VAT. For foreign companies supplying services into Ireland, the rules are specific. Your accountant handles the registration and all ongoing returns.
Once you hire in Ireland, you're operating within the Irish PAYE system. Payroll for a foreign-owned entity has specific requirements around PRSI, USC, and employer obligations that differ significantly from the US system.
Every Irish company must file an annual return with the Companies Registration Office. Missing deadlines carries automatic penalties. Your accountant manages the timeline so you never have to think about it.
Strictly speaking, no — but in practice, yes. The moment your company is active — trading, hiring, or holding assets — you have tax obligations in Ireland that require professional handling. Getting these wrong in the first year creates problems that are expensive to fix. Starting with the right accountant is significantly cheaper than correcting mistakes later.
The 12.5% rate applies to the trading profits of an Irish-resident company. For US companies with an Irish subsidiary, profits generated by the Irish entity are taxed at 12.5% in Ireland. There are also implications under the US tax code — specifically around GILTI and the foreign tax credit — that your US advisors and Irish accountant should coordinate on.
Ireland's standard VAT rate is 23%. Reduced rates apply to certain goods and services. Whether your Irish company needs to register for VAT depends on the nature of your trading activity and whether you exceed the VAT registration thresholds. Your accountant will advise on this as part of the initial setup.
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