Ireland Corporate Income Tax
Detailed corporate income tax rates and rules for Ireland in 2026.
Ireland's headline corporate tax rate of 12.5% on trading income has been the cornerstone of its economic development strategy. A higher rate of 25% applies to non-trading (passive) income including investment income, rental income, and foreign dividends. Under the OECD Pillar Two agreement, Ireland applies a 15% minimum effective rate for multinational groups with consolidated revenue over €750 million. Ireland's Knowledge Development Box (KDB) provides an effective 6.25% rate on qualifying IP income.
Standard Rate
12.5%
Additional Notes
Ireland's R&D tax credit of 30% (increased from 25% in 2024) is among the most generous in the OECD. The country offers a 12.5% rate on capital gains from the disposal of qualifying IP assets developed using R&D credits. Ireland has implemented EU Anti-Tax Avoidance Directives and tightened its IP regime. The 'Double Irish' structure was closed to new entrants in 2015 and fully phased out by 2020.
How Ireland Corporate Tax compares
Ireland’s corporate tax rate of 12.5% is the 176th highest of 203 countries TaxAtlas tracks, below the global average of 22.2% and Europe’s regional average of 19%.
