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  • Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 3/12/2014

Ireland - Effective rate of corporate tax 

March 12: A recent paper concluded that subsidiaries of U.S. multinationals operating in Ireland have an effective tax rate of 2.2%. However, some believe the evidence supporting this paper was “fatally flawed” because, in part, the concepts of place of incorporation and proper locus of income for corporation tax purposes were conflated.

Irish Revenue statistical reports confirm that the denominator in the effective tax rate calculation of 2.2% in the paper was overstated by several hundred percent.


The 2012 Irish Revenue statistical report also indicates an effective tax rate of at least 12.24% for companies in Ireland.


Read a February 2014 report prepared by the KPMG member firm in Ireland: Ireland’s corporation tax rate




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