The Corporation tax rate remained unchanged @ 12.5% in Budget 2024.

Under the transposition of the EU Minimum Tax Directive, a summary of the Pillar Two rules that will come into effect from 31 December 2023 is as follows:

In-scope businesses will pay a minimum effective tax rate of 15% on their profits in respect of each country in which they operate.

This will apply to both multinational and domestic businesses with a global annual turnover of €750 million and above in at least two of the preceding four years.

Research & Development (R&D) Tax Credit  

There are a number of amendments to the R&D Corporation Tax credit including:

An increase in the rate from 25% to 30%.

An increase from €25,000 to €50,000 in the amount of the credit payable in Year One.

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Budget 2020 announced that there will be changes to the R&D tax credit for small and micro companies including an increase in the rate to 30% from 25%.

There will be a special 6.25% rate of corporation tax to apply to the profits arising to certain patents and copyrighted software which are the result of qualifying Research & Development carried out in Ireland.

There will be a special 6.25% rate of corporation tax to apply to the profits arising to certain patents and copyrighted software which are the result of qualifying Research & Development carried out in Ireland.

The 2003 base year restriction on R&D expenditure will be removed from 01 January 2015.

The 3 year tax exemption on start-up companies will be extended in 2015.

Companies registered in Ireland must now also be tax resident in Ireland resulting in the closing of the ‘Double Irish’ tax loophole. This is immediate for new companies and will be phased in for existing companies.