IEOperating in Ireland
Payroll, accounting, employment, immigration, entity setup, and corporate compliance managed locally through a single international coordination model.
Request a country assessmentThe regulatory landscape
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.
For companies below the Pillar Two threshold, the more consequential structural fact is that the 12.5% rate applies only to trading income; passive income — rents, most investment income — is taxed at 25%, and dividend distributions carry a separate 25% dividend withholding tax at source, subject to a wide set of exemptions for resident companies, pension funds, and EU or treaty parents. A further layer, the Knowledge Development Box, taxes qualifying IP income at an effective 10% rate through accounting periods commencing before 1 January 2027, making Ireland's real corporate tax position a function of income type and group size rather than a single published number.
Official language
English (Irish also official; used in law, not commercial practice)
Legal forms
LTD (Private Company Limited by Shares) · DAC · PLC
Corporate tax rate
12.5% trading income · 25% passive income · 15% minimum effective rate (QDTT) for groups with consolidated revenue ≥ €750M
Currency
EUR
Employer social security
PRSI Class A — 11.25% (Jan–Sep 2026), rising to 11.40% from 1 October 2026 (9.15% where weekly earnings ≤ €441)
Dividend tax
25% dividend withholding tax (wide exemptions for resident companies, pension funds, EU/treaty parents)
Minimum share capital
LTD: none required (typically 100 shares of €1) · PLC: €25,000
VAT
23% standard · 13.5% reduced (construction, heating fuel, hospitality accommodation) · 9% second reduced (restaurant/catering, hairdressing, gas & electricity, from July 2026)
Integrated services in Ireland
Each service is delivered as part of an integrated service model, coordinated across functions under a single point of accountability. Clients engage one team, not a coordination layer between independent providers.
Accounting & Tax Compliance
Statutory accounts under FRS 102 or IFRS, VAT returns across Ireland's three active rates, and CT1 corporation tax filings including QDTT computation for in-scope groups.
Explore Accounting & Tax CompliancePayroll & Workforce Management
Full-cycle Irish payroll including PRSI across the 2026 dual-rate structure, PAYE, USC, and employment terms under Irish labour law.
Explore Payroll & Workforce ManagementCompany Formation & Entity Setup
LTD, DAC and PLC incorporation, Companies Registration Office (CRO) filing, and post-formation compliance setup.
Explore Company Formation & Entity SetupWorkforce Mobility
Critical Skills Employment Permit and General Employment Permit coordination for non-EEA partners, managers and key staff relocating to Ireland.
Explore Workforce MobilityClient profiles in Ireland
HR & Employment Advisory
Multinationals restructuring Irish operations to manage Pillar Two exposure
Company Formation & Entity Setup
Companies entering Ireland for the first time, requiring entity setup and initial compliance infrastructure
Workforce Mobility
Companies approaching the €750M consolidated revenue threshold that triggers QDTT filing obligations
Payroll & Workforce Management
Companies already operating in Ireland consolidating fragmented HR, payroll and accounting providers under a single governance layer
At the center of your HR operations
What clients say about our services in Ireland
We knew our group would cross the Pillar Two revenue threshold within two years, but hadn't budgeted for the QDTT to be a distinct filing exercise running alongside our normal CT1 return, with its own calculation logic. Building that into our compliance calendar a year ahead meant it was a scheduled task, not a scramble.
Finance Director, Technology Group — Irish OperationsInsights on Ireland
Selected articles on regulatory developments and operational frameworks relevant to companies in Ireland.
Groups above EUR 750M consolidated revenue face a 15% floor, and the domestic top-up tax carries its own filing obligation. What that adds for an Irish subsidiary of a large group.
Read articleTrading income is taxed at 12.5%, passive income at 25%, and the classification is a question of substance. Where the line falls and why it is worth settling early.
Read articleA rate rise part-way through the year leaves 2026 with two PRSI structures. What payroll systems have to handle, and when.
Read articleFrequently asked questions
Questions raised most often by companies entering or operating in Ireland.
What services does HTLC Network provide in Ireland?
HTLC Network provides Payroll & Workforce Management, Accounting & Tax Compliance, HR & Employment Advisory, Company Formation & Entity Setup, and Workforce Mobility services in Ireland through a coordinated international service model.
Does the 12.5% corporate tax rate still apply to all companies in Ireland?
Yes, for trading income, and this remains unchanged in Budget 2026. But groups with consolidated revenue of €750 million or more in at least two of the preceding four years face an additional Qualified Domestic Top-Up Tax that brings their effective rate on Irish profits to 15%, filed separately from the standard CT1 return.
What's the difference between trading and passive income for tax purposes?
Trading income — income from an actively conducted trade — is taxed at 12.5%. Passive income, including most rental and investment income, is taxed at 25%. Correctly classifying income at source materially affects the company's overall tax position.
When do the new PRSI rates take effect?
Employer Class A PRSI is 11.25% from January to September 2026, rising to 11.40% from 1 October 2026 (9.15% where weekly earnings are €441 or below). Payroll systems must apply both rates within the same calendar year.
What's the minimum share capital to form a private limited company in Ireland?
There is no statutory minimum — a single share is sufficient to incorporate, and many companies start with 100 ordinary shares of €1 each. A public limited company (PLC), by contrast, requires €25,000 in share capital.
Talk to a Ireland expert
For companies structuring a market entry or consolidating an existing Irish operation under a single governance model.