Accounting & Tax Compliance in Ireland

How accounting and tax compliance work in Ireland

Ireland applies a 12.5% corporate tax rate on trading income (25% on passive, non-trading income), among the lowest headline rates in the OECD, and has built three decades of foreign direct investment policy around that number. Budget 2026 leaves the rate unchanged, but its meaning has narrowed for large groups: under the OECD's Pillar Two framework, companies within groups with consolidated revenue of €750 million or more in at least two of the preceding four years now face a Qualified Domestic Top-Up Tax (QDTT) that brings the effective rate on their Irish profits to 15%, computed and filed as a distinct obligation alongside the standard CT1 return.

Operating in Ireland means separating the headline 12.5% rate the market associates with the country from the 15% floor that in-scope multinationals now face, then layering VAT, PRSI and Knowledge Development Box rules that each hinge on distinct, independently-monitored thresholds.

Rate structure and what it applies to

12.5% trading income · 25% passive income · 15% minimum effective rate (QDTT) for groups with consolidated revenue ≥ €750M

• Pillar Two scope test — — €750M consolidated group revenue checked annually against the preceding four years, determining whether the separate QDTT return must be filed alongside CT1
• Trading vs passive income split — — the 12.5% rate applies only to trading income; rental and most investment income is taxed at 25%, requiring income to be correctly classified at source
• PRSI rate change mid-year — — employer Class A PRSI rises from 11.25% to 11.40% on 1 October 2026, with a lower 9.15% band for weekly earnings at or below €441, so payroll applies two different rates within the same tax year
• Audit exemption thresholds — raised July 2024 — small company: turnover ≤ €15M, balance sheet ≤ €7.5M, ≤ 50 employees (2 of 3 criteria, both current and prior year); losing the exemption now requires two late CRO filings within five years, not one

Rates that apply in Ireland

FRS 102 (Irish/UK GAAP), or IFRS for larger and listed entities, and when an audit is required

Statutory bookkeeping in Ireland follows FRS 102 (Irish/UK GAAP), or IFRS for larger and listed entities. Statutory audit exemption available to small companies meeting 2 of 3 thresholds in both the current and prior year (turnover ≤ €15M, balance sheet ≤ €7.5M, ≤ 50 employees) and micro companies (turnover ≤ €900K, balance sheet ≤ €450K, ≤ 10 employees) — thresholds raised 1 July 2024.

Annual accounts and registration

CT1 corporation tax return and payment due by the 23rd day of the 9th month after the accounting period end (filed via ROS); CRO annual return and financial statements due within 56 days of the annual return date.

Entity registration runs through the Companies Registration Office (CRO), typically taking 3–10 working days for an LTD with a standard constitution.

Frequently asked questions