Ireland is a country that houses a large number of companies. The country with capital in Dublin has many advantages for companies, such as the language or that is a country that belongs to the European Union. However, its advantageous fiscal system for companies is one of the main causes for which Ireland is as the tax headquarters of large companies.
Fiscal headquarters in Ireland pay 12.5% for the Corporation Tax. And even this figure can be lower if it is reinvested in R&D practices. On the contrary, at the general level, the average type of company tax is around 23%. For its part, in Europe, this index descends to 18.35%.
1. Why is Ireland the fiscal headquarters of numerous digital companies?
Digital companies, without production centers and physical stores, have more facilities with the current tax system. These digital companies, despite selling in various countries, place their tax headquarters in the country that gives them more tax advantages (Ireland or Luxembourg, for example).
2. A global fiscal system: the petition of the Eurocamara that is signed in March
To fight against it, the European Parliament intends a reform to homogenize the tax base of companies. With this measure, the current practices of transfer of headquarters to countries with low taxation will be avoided.
The Eurocamara will vote in March this rule on a tax system for the global and digital economy. Will Ireland accept the modification of your fiscal system?
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