Tax Haven Ireland

About Tax Haven Ireland

Ireland developed one of the most successful low tax regimes in the world. The corporate tax rate was set at 12.5 percent in 2003, among the lowest in the developed world. This attracted massive foreign investment from US technology and pharmaceutical companies. Apple, Google, Facebook, Pfizer, and many others established European headquarters in Ireland. The Double Irish arrangement allowed companies to route profits through two Irish companies, effectively reducing the rate below 12.5 percent. The Double Irish was phased out in 2015 under OECD pressure. Ireland also offered the Knowledge Development Box, a 6.25 percent rate on intellectual property income. Ireland has resisted EU attempts to harmonize corporate tax rates, arguing that tax sovereignty is a competitive advantage.