Ireland’s effective corporation tax rate has averaged between 10.7 and 10.9% since 2003, according to a technical paper published by the Department of Finance.
The research, by UCC lecturer Seamus Coffey, aimed to find the best way to determine the effective tax rate paid on corporate profits in Ireland.
It examined eight different approaches. which use a range of economic and financial data. to calculate the effective corporate tax rate, some of which include activity that is not taxable in Ireland.
Ultimately, the paper concludes that the most accurate figures are based on data from the Central Statistics Office and the Revenue Commissioners.
Calculations based on these data sets put the country’s effective rate at 10.7-10.9% over the past decade, compared to a headline corporation tax rate of 12.5%.
Revenue’s figure is set at around 10.5% every year by design, which includes tax due on capital gains.