Tax
PAYE income tax, a 12.5% trading corporate rate and 23% VAT
Income tax is collected largely through PAYE on a two-band progressive scale, administered by the Revenue Commissioners. The headline 12.5% corporation-tax rate on trading income is central to Ireland's economy.
Key rules
- Income tax has a standard and higher rate, with the Universal Social Charge on top.
- Trading income is taxed at 12.5%; a 15% top-up applies to very large groups under OECD rules.
- Standard VAT is 23%.
Governing law
- Taxes Consolidation Act 1997
- Value-Added Tax Consolidation Act 2010
Penalties and consequences
- Interest and penalties for late or incorrect returns; criminal liability for evasion
In practice
The OECD global minimum tax means the very largest multinationals now face an effective 15% rate, though 12.5% still applies to most companies.