A rate rise part-way through the year leaves 2026 with two PRSI structures. What payroll systems have to handle, and when.
- Knowledge Development Box
- Split CT1 and CRO deadlines
- When do the new PRSI rates take effect?
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.
The 12.5% rate that draws companies to Ireland is not the number that governs a large group's actual liability once Pillar Two applies, and treating it as such is the most common planning error. Groups approaching the €750M consolidated revenue threshold should model the QDTT impact — and the separate filing obligation it creates — well before it applies, not discover it at year-end.
What an employee costs in Ireland. Every figure below is published on the Ireland country page.
| Ireland | |
|---|---|
| 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) |
| Minimum wage | €14.15/hour (2026, workers aged 20 and over) |
| Dividend tax | 25% dividend withholding tax (wide exemptions for resident companies, pension funds, EU/treaty parents) |
| VAT | 23% standard · 13.5% reduced (construction, heating fuel, hospitality accommodation) · 9% second reduced (restaurant/catering, hairdressing, gas & electricity, from July 2026) |
| Annual accounts filing | 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 |
What makes it complex in Ireland
- Knowledge Development Box — — qualifying IP income taxed at an effective 10% rate, but only through accounting periods commencing before 1 January 2027, a time-limited planning window rather than a permanent feature.
- Split CT1 and CRO deadlines — — CT1 and CT payment due by the 23rd of the 9th month after year-end, while the CRO annual return and accounts are due within 56 days of the annual return date: two independent filing calendars running in parallel.
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.
Knowledge Development Box is one of the points HTLC Network handles for clients operating in Ireland, within a single engagement that covers every other country they operate in — executed locally, governed centrally.
In Ireland the scope is: Full-cycle Irish payroll including PRSI across the 2026 dual-rate structure, PAYE, USC, and employment terms under Irish labour law.
See Payroll & Workforce Management in Ireland for the full scope, or the Ireland country page for the statutory framework across every service.
Figures as published on the HTLC Network country pages, reviewed September 2026 and collected from public sources. They are not a substitute for advice on a specific case and should be verified before being relied on.