The Irish system of taxation is principally governed by a combination of domestic Irish legislation and European Union (EU) law. Legislation governing taxes in Ireland includes:

• the Taxes Consolidation Act 1997 (TCA);
• the Stamp Duties Consolidation Act 1999;
• the Capital Acquisitions Taxes Consolidation Act 2003; and
• the Value-Added Tax Consolidation Act 2010.

As a member state of the EU, Ireland is subject to EU law, both primary and secondary, including EU treaties, regulations and directives, together with decisions, recommendations and opinions issued by EU institutions. This includes, for instance, judgments of the Court of Justice of the European Union (CJEU).   

In terms of the scope and structure of Ireland’s tax treaty network, Ireland has currently signed comprehensive double taxation agreements (DTAs) with 78 countries, of which 75 are in effect. Ireland’s DTAs cover direct taxes, which in the case of Ireland are:

• income tax;
• universal social charge;
• corporation tax; and
• capital gains tax.

Ireland’s membership of the Organisation for Economic Co-operation and Development (OECD) and its commitment to participate in the implementation of OECD tax initiatives also shapes the development of Ireland’s tax laws.

In terms of other sources, Ireland’s tax authority, the Revenue Commissioners (“Revenue”), publishes extensive guidance on the interpretation and application of Ireland’s tax laws. Such guidance is, however, not binding on taxpayers or the Irish courts. 

Subject to the following, the Irish Constitution takes precedence over other, inferior sources of law in Ireland. Accordingly, a common law rule or piece of legislation that conflicts with a provision of the Constitution can be invalidated on the basis that it is repugnant to the terms of the Constitution.   

Ireland’s accession to the EU necessitated an amendment to the Constitution to ensure that EU law enjoys supremacy in Ireland. Accordingly, in areas where the EU has competence, EU law prevails over a conflicting domestic provision. The terms of a ratified DTA concluded between Ireland and a DTA partner jurisdiction can also override domestic provisions. 

As a common law jurisdiction, decisions of an Irish court (other than decisions of the Tax Appeals Commission (TAC)) have precedential value in Ireland and are binding on taxpayers unless overruled by a decision of a superior court (or a subsequent legislative amendment). As noted in 1.1 Domestic Sources of International Tax Law, the same applies with respect to decisions of the CJEU. Decisions of foreign courts are only of persuasive authority in Ireland. 

As a small open economy, Ireland benefits from globalisation and DTAs are important in facilitating engagement with key economic partners. Ireland’s long-standing tax treaty policy has been to expand, maintain and enhance Ireland’s tax treaty network in order to remove barriers and facilitate trade and investment opportunities between Ireland and partner countries. In pursuance of this policy, and as noted in 1.1 Domestic Sources of International Tax Law, Ireland currently has comprehensive DTAs in place with 78 countries, of which 75 are in effect. 

When negotiating DTAs, Ireland generally seeks to align as closely as possible with the OECD Model Tax Convention (MTC). In this respect, in June 2022 Ireland published a Tax Treaty Policy Statement which makes clear that one of Ireland’s objectives for DTAs is to incorporate OECD minimum standards and best practices, aligned with the positions adopted by Ireland in the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI), into new and existing DTAs. 

Ireland signed the MLI in June 2017 and deposited its instrument of ratification with the OECD on 29 January 2019.

The MLI entered into force for Ireland on 1 May 2019 and took effect for Ireland’s DTAs as follows:

• with respect to taxes withheld at source, from 1 January 2020; and
• with respect to all other taxes levied by Ireland, for taxes levied with respect to taxable periods beginning on or after 1 November 2019.

The date on which the MLI modifies one of Ireland’s DTAs depends on when the relevant treaty partner deposited its own instrument of ratification.

Subject to the rules outlined in greater detail in the succeeding sections, the general principle in Ireland is that an Irish tax-resident person is assessable to tax, whether it be income tax or corporation tax, on income derived from both domestic and foreign sources. By contrast, the Tax Acts generally only seek to assess a non-resident person on income from sources within Ireland. 

As Ireland has an extensive DTA network, double taxation is generally avoided where both Ireland and its DTA partner seek to tax the same income. 

An individual is resident in Ireland for tax purposes for a tax year if the individual is present in Ireland for:

• at least 183 days in total in that tax year; or
• at least 280 days in total between that tax year and the previous tax year (the “look-back rule”).

If an individual is present in Ireland for not more than 30 days in a tax year:

• that individual will not be regarded as resident for that tax year; and
• those days in Ireland are ignored for the purposes of the look-back rule.

For individuals, the concepts of ordinary residence and domicile are also of relevance when determining an individual’s liability to Irish tax. 

If an individual has been tax-resident in Ireland for three consecutive tax years, the individual is considered ordinarily resident from the beginning of the fourth year, regardless of what their residence position is for that fourth year. An individual ceases to be ordinarily resident in Ireland if they are non-resident for three consecutive tax years. 

Domicile is a common law construct. Under common law, every person must have a domicile. A person can only have one domicile at any particular time and cannot be without a domicile. There are three types of domicile, namely:

• domicile of origin;
• domicile of choice; and
• domicile of dependence. 

An individual who is resident and domiciled in Ireland for a year of assessment is chargeable to Irish income tax on their worldwide income. 

An individual who is non-resident but who is ordinarily resident in Ireland is liable to tax on their worldwide income, with the exception of the following:

• income from a trade or profession no part of which is carried out in Ireland;
• income from an office or employment where all of the duties except incidental duties are exercised outside Ireland; and
• other foreign income that does not exceed EUR3,810 in total.

An individual who is not domiciled in Ireland but who is resident and/or ordinarily resident in Ireland is taxable on what is known as the “remittance basis” of taxation. Where an individual is taxable under the remittance basis, the individual’s non-Irish source income and gains are taxable only to the extent that they are remitted to Ireland. Where the individual has employment income from a non-Irish employment and performs duties related to that employment in Ireland, the remittance basis of taxation will not apply to such employment income. 

For 2026, the standard rate of income tax is 20% and the marginal rate is 40%. In terms of the thresholds at which the marginal rate applies, currently for a single person the first EUR44,000 of the individual’s income is taxed at 20%, with the balance taxed at 40%. For a married couple with one spouse with income, the first EUR53,000 is taxed at 20%, with the balance taxed at 40%. Various credits, allowances and reliefs are available to reduce an individual’s income tax liability (eg, a personal tax credit of EUR2,000 applies for the tax year 2026). 

Separate to income tax, a universal social charge (USC) also applies in Ireland. If a person’s total income exceeds EUR13,000, subject to certain exceptions, USC applies to the individual’s full income. For 2026 the USC rates are as follows:

• first EUR12,012 of income is taxed at 0.5%;
• next EUR16,688 of income is taxed at 2%;
• next EUR41,344 of income is taxed at 3%; and
• balance of income is taxed at 8%.

Ireland also operates a system of pay-related social insurance (PRSI). PRSI is a mandatory social insurance contribution paid by employers, employees and self-employed individuals at varying rates, subject to certain exemptions. There are 11 different PRSI contribution classes which determine an individual’s liability to PRSI. See 3.5 Employment Income for the rates of employer and employee PRSI. 

Individuals who are not resident or ordinarily resident in Ireland are subject to Irish income tax on their:

• Irish source income; and
• income from an Irish public office and from a trade, profession or employment to the extent that such trade, profession or employment is exercised, or duties in respect of it are carried out, in Ireland. 

Subject to certain exceptions, USC also arises for non-resident individuals with relevant emoluments and/or relevant income within the charge to Irish income tax. USC is generally not payable in respect of, for example, employment income of a non-resident individual that is attributable to duties exercised wholly outside Ireland, where there is no charge to income tax in Ireland.

With respect to PRSI, the general rule is that an employee pays PRSI in the country where they carry out the duties of their employment, regardless of where the employer is located. Where an employee’s duties of employment are carried out both in Ireland and abroad, only that portion of the employee’s remuneration that relates to duties carried out in Ireland is liable to PRSI in Ireland. An employee may also be liable to pay PRSI on their income in another jurisdiction. For this reason, Ireland has entered into a number of social security agreements with other jurisdictions to ensure that, in these circumstances, PRSI is only paid in one country.

A company incorporated in Ireland is generally regarded as tax-resident in Ireland (referred to as the Incorporation Test). The Incorporation Test is dis-applied where an Irish incorporated company is, under the terms of one of Ireland’s DTAs, regarded as tax-resident in the DTA partner jurisdiction and not tax-resident in Ireland.

Where a company is dual resident in both Ireland and a DTA partner jurisdiction, it is necessary to have regard to the tie-breaker test in the relevant DTA. When it comes to the applicable tie-breaker test, the specific tax treaty should always be consulted. Depending on the DTA, residence may be determined by reference to the place of effective management of the relevant company or by mutual agreement between the competent authorities of Ireland and the DTA partner.   

A foreign incorporated company can establish Irish tax residence by having its central management and control (CMC) exercised in Ireland. In this respect, Revenue’s guidance indicates that it will consider the highest level of control in a company when considering where its CMC is located, and analyse where:

• company policy is decided;
• investment decisions are made;
• major contracts are defined;
• the company’s head office is located;
• the majority of directors live; and
• meetings of the board of directors are held.

A non-resident company is only subject to Irish corporation tax if it carries on a trade in Ireland through a “branch or agency”. A “branch or agency” is not meaningfully defined in Ireland’s tax legislation and is simply described as meaning “any factorship, agency, receivership, branch or management”. 

Revenue has, however, published guidance on the interpretation of the term, wherein it accepts that it is synonymous with a permanent establishment (PE) within the meaning of Ireland’s DTAs. In this respect, Ireland’s DTAs generally follow Article 5 of the MTC and the definition of a permanent establishment contained therein. As deviations from Article 5 of the MTC can arise, the relevant DTA must be consulted in each case. An example of a deviation arises under the Ireland-UK DTA where a building site or construction or installation project lasting for more than six months will constitute a PE (the threshold under Article 5 MTC is 12 months).

See 2. Territoriality, Residence and Permanent Establishment for the rules that apply to the taxation of income from Irish immovable property held by resident and non-resident individuals. 

Where immovable property is held through a corporate entity (either Irish tax-resident or non-Irish tax-resident), rental income receivable from letting the property is chargeable to Irish corporation tax at 25%.

In calculating the taxable income derived from immovable property, deductions are allowable for certain expenses: these include, for example, the costs of maintenance, repairs and management/administration. Certain reliefs and exemptions are also available to reduce the amount of tax payable on income from immovable property, including, subject to certain conditions, in relation to interest on borrowed money employed in the purchase, improvement or repair of a property. 

Ireland has a special regime relating to payments to non-resident landlords. The regime requires either:

• that such landlord appoint an Irish resident collection agent to collect and be assessed for Irish tax in the name of the non-resident landlord in relation to rental income and to file Irish tax returns on their behalf; or
• where an Irish resident collection agent is not acting in this capacity, that the non-resident landlord allow their tenant, where paying directly, or their collection agent (following receipt of rent from a tenant), to withhold 20% of the rent due and to submit it to Revenue – the non-resident landlord can then claim a credit for the tax withheld and remitted to Revenue by the tenant when filing its tax return.

Corporation tax is charged at 12.5% on profits of a trade carried on at least partly in Ireland, subject to certain exceptions, while non-trading income (eg, investment income) is taxed at 25%.

There is no statutory definition in Irish tax law as to what constitutes a “trade”, although the UK courts have set down a number of general principles which are broadly followed. The primary characteristics of a trade are operational substance, profit motive, the taking of risk to generate a profit, dealing with a number of (ideally third-party) customers, etc. The concept of “trading” presupposes a certain level of activity by the company – it must be actively engaging in its business and deriving profits from its business, rather than simply passively receiving investment income. However, the “trading” analysis is not industry- or function-specific – any revenue-generating activities can potentially qualify as “trading” activities benefiting from the 12.5% rate.

When calculating the taxable profits of a trade, expenditure incurred wholly and exclusively for the purposes of the trade and which is not capital in nature is allowable as a deduction against the trading income.   

As a small open economy, Ireland has introduced tax legislation intended to make Ireland an attractive location for foreign direct investment. In this respect, a number of notable incentives and reliefs are available for companies doing business in Ireland that can reduce the overall amount of corporation tax payable on their business profits, including: 

• a regime that provides tax relief on the acquisition cost of intellectual property (IP) and other intangibles;
• an OECD-compliant R&D tax credit regime;
• an OECD-compliant patent box regime;
• extensive domestic exemptions from withholding tax on interest and dividend payments;
• no withholding tax on royalties paid to EU member states/DTA countries;
• no thin capitalisation rules; and
• no capital duty. 

For individuals, the Irish income tax treatment of dividends, interest and royalties follows the general rules outlined in 2. Territoriality, Residence and Permanent Establishment. 

Taxation of Dividends

A distribution received by an Irish tax-resident company from another Irish tax-resident company is not chargeable to income tax or corporation tax, and forms part of the franked investment income of the recipient company. 

Foreign dividends received by an Irish tax-resident company may either be:

• exempt from Irish corporation tax if the conditions of the participation exemption are met;
• taxed at the 12.5% rate of corporation tax (as described in more detail below); or
• taxed at the 25% rate of corporation tax.

Subject to the following, for companies resident in Ireland, passive receipts of foreign dividends, interest and royalites are generally subject to corporation tax at a rate of 25%. With respect to dividends received by a resident company from companies resident for tax purposes in an EU member state, a country with which Ireland has concluded a DTA, a non-EU non-DTA partner country that has ratified the OECD Convention on Mutual Administrative Assistance in Tax Matters or a non-DTA country where the paying company is a member of a publicly listed group, such dividends are liable to tax at the 12.5% rate of corporation tax where:

• 75% or more of the dividend-paying company’s profits are “trading” profits (other than profits from what is known as an “excepted trade”), being either trading profits of that company or dividends received by it out of trading profits of lower-tier companies resident in the EU, a country with which Ireland has a DTA, a non-EU non-DTA partner country that has ratified the OECD Convention on Mutual Administrative Assistance in Tax Matters or a non-DTA country where the paying company is a member of a publicly listed group; and
• the aggregate value of all assets used by the receiving company and each company of which it is a parent for their trades is not less than 75% of the aggregate value of all their assets.

An election must be made in the company’s annual corporation tax return to avail itself of this treatment. 

Where a company does not own (directly or indirectly) more than 5% of the share capital of the foreign dividend-paying company, any such dividends received, which form part of the trading income of that company taxable at 12.5%, are not subject to tax.

Under the Finance Act 2024, Ireland introduced a participation exemption in respect of foreign dividends. The Finance Act 2025 subsequently expanded its geographical scope and introduced certain other technical amendments such that it now applies to dividends received from a company which is tax-resident in an EU or EEA member state, in a country with which Ireland has concluded a DTA or in a jurisdiction that generally imposes a non‑refundable withholding tax on distributions, where:

• the paying entity is not generally exempt from foreign tax;
• the paying entity is not resident in a jurisdiction that is included on the EU list of non-cooperative jurisdictions; and
• the above conditions have been satisfied throughout the preceding three years, reduced from five years with effect from 1 January 2026, in respect of the paying entity.

A number of other technical requirements must be satisfied for the participation exemption to apply. The participation exemption for foreign dividends is an optional regime and therefore only applies to taxpayers who elect for it – otherwise, the existing tax and credit rules (noted above and below) continue to apply.

Where foreign dividends, interest and royalties received by an individual or company are taxed in Ireland, credit may be available for foreign withholding taxes suffered under the terms of a DTA or domestic law. With respect to foreign dividends received by an Irish company, credit may also be available for underlying taxes suffered on the profits out of which the dividend was paid, subject to certain conditions. 

Taxation of Interest and Royalties

Interest and royalties received by an Irish tax-resident company may be taxed at the 12.5% rate of corporation tax (where received as trading income) or the 25% rate of corporation tax (where received as non-trading or passive income).

Withholding Taxes

As a general rule, dividends and other distributions paid by an Irish tax-resident company are subject to dividend withholding tax (DWT) at a rate of 25%, subject to a broad range of exemptions. Payments of interest, patent royalties and other annual payments attract withholding tax at a rate of 20%. However, there are broad domestic law exemptions that can be availed of to relieve the paying company from the obligation to withhold. For example, no DWT arises on dividends paid to a non-Irish tax-resident company:

• that is resident in an EU member state or a country with which Ireland has a DTA, provided that company is not controlled by any person or persons resident in Ireland; or
• that is ultimately controlled by a person or persons resident in an EU member state or a country with which Ireland has a DTA. 

Similarly, patent royalties are eligible for a domestic law withholding tax exemption where the payments are made by a company in the course of a trade or business to a company that is tax-resident in an EU member state (other than Ireland) or in a DTA country that generally imposes a tax on royalty payments receivable from outside that territory. The payments must be made for bona fide commercial reasons, and the exemption does not apply where the royalties are paid in connection with a trade carried out in Ireland through a branch or agency by the receiving company. 

See 5.3 Blacklists and Non-Cooperative Jurisdictions for how Ireland’s outbound payments defensive measures regime interacts with Ireland’s withholding tax exemptions. 

Currently, the chargeable gains of an individual are subject to Irish capital gains tax (CGT) at the rate of 33%. Companies pay corporation tax on their chargeable gains at an effective rate of 33%. Broadly, Irish CGT applies to the difference between the sale proceeds and acquisition costs of a capital asset. Certain allowable expenses can also be deducted from the sale proceeds in calculating the chargeable gain subject to Irish CGT.

Irish tax-resident persons pay CGT on gains arising on the disposal of all capital assets, regardless of where those assets are located. In the case of foreign situated property, the terms of a DTA can apply to eliminate double taxation where it arises.   

Non-resident persons are subject to Irish CGT on gains arising from the disposal of specified Irish assets. Such assets include: 

• land and buildings in Ireland;
• minerals in Ireland (or any rights, interests or assets relating to such minerals);
• assets used or held for the purposes of a trade carried on in Ireland;
• shares deriving the greater part of their value from land, buildings or minerals in Ireland;
• exploration and exploitation rights of Ireland’s seabed and subsoil; and 
• shares deriving the greater part of their value from exploration and exploitation rights of Ireland’s seabed and subsoil.

For companies, there are various reliefs from CGT on the transfer of assets intra-group and in the context of company reconstructions and mergers. Various reliefs from CGT are also available for individuals, including for entrepreneurs disposing of certain business assets. Individuals are also entitled to an annual exemption from CGT on the first EUR1,270 of gains arising in a tax year.

Employment income is subject to deduction at source by the employer of employee taxes – ie, income tax, USC and PRSI under the Pay As You Earn (PAYE) system. See 2.3 Taxation of Resident Individuals for the rates of income tax and USC applicable for 2026. Currently, employer PRSI applies at the rate of up to 11.25%, and employee PRSI applies at a rate of up to 4.2% (from 1 October 2026, the rate of PRSI (employer and employee) will increase by 0.15%).

As a small open economy, Ireland recognises the need for incentives to attract talent to support investment. In line with this policy, Ireland operates a number of regimes designed to support short-term assignees to Ireland and cross-border employment. One such relief is the Special Assignee Relief Programme (SARP). An employee assigned to work in Ireland by their existing employer may be entitled, subject to certain conditions being satisfied, to claim a deduction from their employment income tax liability under SARP. For employees who arrive in Ireland after 1 January 2026, the proportion that can be deducted is 30% of income over EUR125,000, up to a limit of EUR1 million. 

The rise of remote working poses particular challenges for employees, tax administrations and employers. From an Irish tax perspective, Ireland does not have standalone rules relating to remote working. As such, it is important to note that, where an individual performs employment duties in Ireland for a foreign employer, this can give rise payroll withholding obligations and, depending on the circumstances, permanent establishment risk (subject to the terms of Ireland’s DTAs). It is advisable for employers to put in place policies and procedures governing remote working to help mitigate these risks. 

Ireland’s tax legislation ensures that income which does not fall into any of the specific categories addressed previously is still brought within the charge to tax. In practice, such income is taxed as passive or non-trading income. This ensures that income not otherwise covered by specific trading, passive or category-based rules does not fall outside the Irish tax net.

Ireland has taken steps to implement Amount B, albeit adding its own domestic conditions, restrictions and compliance requirements on top of the OECD framework. Specifically, the Finance Act 2024 introduced Amount B rules in Ireland for chargeable periods commencing on or after 1 January 2025.

Ireland only applies Amount B where the counterparty is in an OECD “covered jurisdiction”. A covered jurisdiction for these purposes is a jurisdiction included in the list of covered jurisdictions for the Inclusive Framework political commitment on Amount B, published by the OECD on 17 June 2024. Broadly, Ireland will respect the Amount B outcome determined in accordance with the OECD Pillar One Amount B guidance where such an approach is applied by a covered jurisdiction with which Ireland has a DTA and the profits of the distributor, sales agent or commissionaire (as the case may be) are charged to tax in that covered jurisdiction. 

An arrangement qualifying under Ireland’s implementing legislation in respect of Amount B is an arrangement that is: 

• a buy-sell marketing and distribution arrangement where the distributor under the arrangement purchases goods from one or more than one associated company for wholesale distribution to independent parties; or
• a sales agency or commissionaire arrangement where the sales agent or commissionaire under the arrangement contributes to one or more than one associated company’s wholesale distribution of goods to independent parties and where those goods are sold by the associated company without either it, or the sales agent or commissionaire, engaging other associated parties as intermediaries between it and the independent party customers.

For the arrangement to qualify, the legislation provides that the arrangement must also exhibit economically relevant characteristics that mean it can be reliably priced using a one-sided transfer pricing method where the distributor, sales agent or commissionaire (as the case may be) is the tested party.

An arrangement will not constitute a qualifying arrangement under Ireland’s implementing legislation where:

• the arrangement involves the distribution of non-tangible goods, services or the marketing, trading or distribution of commodities;
• the tested party carries out non-distribution activities and the arrangement cannot be adequately evaluated and reliably priced separate from those activities; or
• the tested party has incurred annual operating expenses which are lower than 3% or greater than 30% of its annual net revenues.

As noted previously, Ireland’s implementing legislation also requires specific compliance requirements to be satisfied. These include, for example, including Amount B-specific information in the transfer pricing local file and notifying Revenue that the taxpayer is applying Amount B. 

Amount B will not apply unless the qualifying arrangement is entered into for bona fide commercial reasons and not as part of an arrangement the main purpose, or one of the main purposes, of which is the avoidance of tax.

In October 2021, the Irish Department of Finance indicated its support for the two-pillar solution to address the tax challenges arising from the digitalisation of the economy (including Amount A). At the time, the Irish government noted that, while Pillar One represented a net cost to Ireland in the form of reduced corporation tax receipts, overall Pillar One should help bring about stability and certainty in the international tax framework, which in turn should help drive economic growth from which all (including Ireland) can benefit.

As part of its commitment to the two-pillar solution, the Irish government has indicated its willingness to sign the Multilateral Convention to Implement Amount A of Pillar One if it opens for signature. Given recent pronouncements from the US Treasury in respect of Amount A, it remains to be seen whether Amount A will proceed in its current form.     

In 2021, the OECD published draft Global Anti-Base Erosion Rules aimed at ensuring that multinational enterprises will be subject to a global minimum 15% tax rate. On 15 December 2022, the Council of the European Union formally adopted the Minimum Taxation Directive (2022/2523) (the “Pillar Two Directive”), which establishes a minimum effective tax rate of 15% for large corporate groups in the EU, and essentially requires the implementation within the EU of the OECD’s Pillar Two proposal. EU member states were required to implement the Pillar Two Directive by 31 December 2023.

Ireland implemented the Pillar Two Directive and the OECD’s proposals into Irish law pursuant to the Finance Act (No 2) 2023, with the effect that the 15% minimum effective corporation tax rate applies to large corporate groups with a turnover of EUR750 million or more for accounting periods commencing on or after 31 December 2023. Ireland introduced the income inclusion rule (IIR) and qualified domestic minimum top up tax (QDMTT) with effect for accounting periods commencing on or after 31 December 2023, while, subject to limited exceptions, the undertaxed profits rule (UTPR) entered into effect for accounting periods commencing on or after 31 December 2024.

Ireland continues to apply the 12.5% corporation tax rate to companies outside the scope of Pillar Two.

The Irish implementing legislation moved a little beyond the OECD framework rule by expanding the scope of the QDMTT to apply to standalone entities (ie, non-consolidating entities which breach the EUR750 million threshold in their own right), but excluding standalone investment undertakings.

In January 2026, the “Side-by-Side” package of administrative guidance was released by the OECD. This package recognises that the US domestic tax regime can operate side-by-side with the Pillar Two rules. As such, where a multinational group has a US parent, the group may be excluded from the application of the IIR and the UTPR under Pillar Two, subject to electing into a safe harbour and satisfying certain conditions. The QDMTT is unaffected by the new safe harbours and will continue to apply. Irish tax legislation will need to be amended to give effect to the Side-by-Side package, and it is expected that implementing legislation will be published in late 2026, but with retrospective effect for accounting periods commencing on or after 1 January 2026.

Ireland has not implemented a digital services tax or any similar tax. Ireland also does not have concepts that would expand the ambit of source taxation to digital businesses specifically. 

When it comes to fraud and evasion, for the purposes of revenue offences under Ireland’s tax legislation, “fraudulent evasion of tax” is defined in Section 1078 TCA to mean: 

• evading or attempting to evade any payment or deduction of tax required to be paid by the person or, as the case may be, required to be deducted from amounts due to the person; or
• claiming or obtaining, or attempting to claim or obtain, relief or exemption from, or payment or repayment of, any tax to which the person is not entitled. 

The above must be accompanied by conduct that deceives, omits or conceals, or the use of any other dishonest means, including providing false or misleading information or failing to furnish information to Revenue. In this context, Revenue lists in its Code of Practice for Revenue Compliance Interventions (the “Code”) the following as the types of activity most likely to lead to prosecution: 

• deliberate omission from tax returns;
• false claims for repayments;
• use of forged or false documents; and
• failure to remit fiduciary taxes.

With respect to avoidance, as outlined in more detail in 5.2 Anti-Avoidance Mechanisms, Ireland’s tax legislation contains a general anti-avoidance rule (GAAR) (Section 811C TCA) whereunder a “tax avoidance transaction” is defined, in broad terms, as a transaction in respect of which it would be reasonable to consider that the transaction gives rise to a tax advantage and the transaction was not undertaken or arranged primarily for purposes other than to give rise to a tax advantage. A “tax advantage” for these purposes essentially means a reduction, avoidance or deferral of any charge or assessment to tax or a refund of or a payment of an amount of tax, or an increase in an amount of tax, refundable or otherwise payable to a person.

In considering whether a transaction constitutes a “tax avoidance transaction”, Revenue will consider a variety of factors, including the following:

• the form and substance of the transaction;
• the substance of any transaction(s) that may reasonably be regarded as being directly or indirectly related or connected with the transaction in question; and
• the final outcome of the transaction and any combination of those other transactions which are so related or connected.

Revenue will also have regard to the results of the transaction, its use as a means of achieving those results and any other means by which the results or any part of those results could have been achieved. 

Irish tax law contains a number of anti-tax avoidance provisions. Generally, these provisions require that a relief can be relied upon only where the transaction is undertaken for bona fide commercial purposes and is not carried out primarily for tax avoidance purposes.

Section 811C TCA sets out the Irish GAAR provision for transactions entered into after 23 October 2014 (see 5.1 Definition and Identification of Tax Fraud, Evasion, Tax Avoidance and Abusive Schemes for what constitutes a “tax avoidance transaction” and the meaning of “tax advantage” for the purposes of Section 811C TCA). Under the GAAR, Revenue can reverse an assessment on the basis that it would be reasonable to consider that the transaction gives rise to a tax advantage and that obtaining the tax advantage was the purpose of the transaction.

Ireland’s GAAR does not apply where a transaction (or series of transactions) is:

• undertaken with a view, directly or indirectly, to the realisation of profits in the course of a business activity of a business carried on by a person, and is not undertaken or arranged primarily to give rise to a tax advantage; or
• undertaken or arranged for the purpose of obtaining the benefit of any relief, allowance or other abatement, and would not result directly or indirectly in a misuse or abuse of the relevant provision having regard to the purposes for which it was provided.

Separately, Schedule 33 TCA contains a list of specific targeted anti-tax avoidance rules that are contained throughout Ireland’s tax legislation. This list includes, for example, anti-avoidance rules in respect of bond washing, the misuse of losses and the transfer of rights to receive interest from securities. 

As a member state of the EU, Ireland has also implemented the provisions of the Anti-Tax Avoidance Directive (ATAD). In line with its commitments under ATAD, in recent years Ireland has introduced:

• controlled foreign company rules;
• hybrid and reverse hybrid mismatch rules; 
• an ATAD-compliant exit tax; and
• interest limitation rules (ILRs). 

As a member state of the EU, Ireland has adopted the EU list of non-cooperative jurisdictions for tax purposes. The list currently includes American Samoa, Anguilla, Guam, Palau, Panama, Russia, Turks and Caicos Islands, the US Virgin Islands, Vanuatu and Vietnam.

The Finance (No 2) Act 2023 introduced certain defensive measures with effect from 1 April 2024, applying withholding taxes to outbound payments to associated entities of interest, dividends and royalties where the recipient is resident or situated in a jurisdiction that is on the EU list of non-cooperative jurisdictions or in a no-tax or zero-tax jurisdiction. Arrangements that were in place on or before 19 October 2023 were grandfathered to the later date of 1 January 2025. In broad terms, where Ireland’s outbound payments defensive measures apply, they remove certain exclusions from the obligation to deduct withholding taxes and impose certain reporting obligations to Revenue on the payer.

Ireland’s Mandatory Reporting Regime

Mandatory disclosure rules exist in Ireland and require tax advisers to disclose any transaction, or any proposal for any transaction, that enables or might be expected to enable a person to obtain a tax advantage. The tax advantage must be the main, or one of the main, benefits of the transaction and the transaction must fall into one of the following categories.

• There is a need for confidentiality in relation to the scheme.
• The fees are significantly attributable to the tax advantage.
• The transaction involves standardised documentation, the form of which is largely determined by the promoter.
• The transaction gives rise to a tax advantage of a particular class prescribed in the regulations – eg, tax advantages arising from:
1. loss schemes for individuals;
2. loss schemes for companies;
3. employment schemes;
4. income into capital schemes; and
5. income into gift schemes.
• The transaction gives rise to a tax advantage where a party to that transaction is a trustee of a discretionary trust, and the trust is not of a type which is excluded from the requirement to disclose information by regulations.

A transaction is disclosable whether it is a “bespoke” transaction (designed for a particular person) or an “off-the-shelf” transaction (marketed with no specific client in mind). Bespoke schemes must be disclosed when any transaction forming part of a disclosable transaction is implemented. Disclosure of the details of such transactions must be made to Revenue within five working days of the date of the first transaction entered into by the client.

DAC6

EU Council Directive (2018/822) (DAC6) places an obligation on intermediaries to report certain cross-border arrangements which involve one or more of a list of specified “hallmarks”. DAC6 was implemented into Irish law pursuant to the Finance Act 2019 and came into effect from 1 July 2020. Broadly, intermediaries are required to provide certain information regarding reportable cross-border arrangements to the Irish tax authorities, which automatically share the information they receive with all other EU member states. The DAC6 report must be filed 30 days after a reporting obligation is triggered.

DAC7

EU Council Directive (2021/514) (DAC7) was implemented into Irish law by the Finance Act 2022. DAC7 obliges certain platform operators to collect and automatically report information to Revenue on certain sellers using their platforms to earn consideration.

Revenue is the authority in Ireland responsible for enforcing tax laws, collecting taxes/duties and implementing customs controls.

The tax system in Ireland generally functions on a self-assessment basis, which means that it is the responsibility of the taxpayer to promptly file returns and pay the correct amount of tax. To the extent that errors are made by taxpayers in connection with their tax affairs, facilities exist to enable taxpayers to voluntarily address those errors and discharge any liabilities with reduced penalty exposure. In general, taxpayers are selected by Revenue for a compliance intervention based on the presence of various risk indicators. Revenue routinely uses analytics software to risk-profile taxpayers and tax risks on the basis of available data, with a view to identifying appropriate cases for a compliance intervention.

Revenue conducts all of its enquiries in line with the Code. The Code has a graduated, three-level compliance intervention framework as follows.

• Level 1 interventions are designed to support compliance by reminding taxpayers of their obligations and providing them with the opportunity to correct errors without initiating a more in-depth intervention.
• Level 2 interventions are designed to confront compliance risks based on the circumstances and behaviour of the taxpayers, and range from a so-called “risk review” to a formal “audit”.
• Level 3 interventions are designed to confront what Revenue perceives as high-risk practices and cases displaying risks of suspected fraud and tax evasion. Interventions within this level are termed “investigations”.

Under each of the intervention levels, there is a fact-finding/evidence-gathering stage, during which Revenue will make enquiries and request information either by way of written correspondence/document review or on-site enquiries (using statutory information-gathering powers if necessary).

Revenue has relatively broad information-gathering powers in conducting its enquiries. Revenue officials have the power to enter premises/places where it is believed a trade or profession chargeable to tax is being carried out or associated business records are retained. Officials can require persons at the premises to produce business records, and those officials can also search the premises. Officials are entitled to remove records and retain them for further examination. The records within scope of production include written material and those records stored on electronic devices. A search warrant is generally required in order for a Revenue official to enter a private residence.

Revenue may also request information from third parties by serving notice in writing to that third party and informing the taxpayer that such a notice has been issued. Revenue also has extensive powers to request information from financial institutions.

When it comes to exercising its powers, Revenue generally seeks in the first instance to encourage voluntary compliance by taxpayers, but pursues non-compliance vigorously. In terms of limitations on Revenue, in general Revenue can only issue an amended assessment within four years from the end of the accounting period in which the relevant tax return is delivered. An exception to this general rule exists in the case of fraud or neglect (in which case there is no time limit on the making of assessments). The four-year time limit also does not apply where the return submitted by the taxpayer for the period does not contain a full and true disclosure of all material facts necessary for the making of an assessment for that period.

Irish tax legislation contains civil and criminal penalties that can be imposed depending on the nature of the tax default. 

Fixed penalties generally apply to breaches of the tax legislation focused on procedural administration (eg, for failure to file a return).

Tax-geared penalties generally apply in situations where the tax default gives rise to a tax liability, with the penalty amount being a percentage of the amount of tax underpaid. In this instance, the penalty can range anywhere from 3% to 100% depending on a number of factors. These factors include: 

• whether the error was careless or deliberate and with/without significant tax consequences;
• whether the taxpayer made an unprompted or prompted qualifying disclosure of the error; and
• how co-operative the taxpayer is once the error has been disclosed or identified.

A penalty is not due where the aggregate amount of the tax or duty default is less than EUR6,000 and the default is not in the deliberate behaviour category.

Where Revenue forms the opinion that a taxpayer is liable to a penalty, the amount of the penalty is computed by Revenue and sought to be agreed with the taxpayer (and paid). Where a taxpayer does not agree to the penalty liability or does not pay a penalty which they have agreed to, a Notice of Opinion will be issued by Revenue to the taxpayer, outlining the amount of the penalty that Revenue asserts to be due. 

Where the amount of the penalty is not agreed, Revenue can make an application to the District Court, Circuit Court or High Court for that court to determine whether the penalty is due. The appropriate court is determined by reference to the jurisdictional limits for civil matters.  Where Revenue refers a matter to court, and where the court makes a determination that the taxpayer is liable to a penalty and makes an order for the recovery of that penalty, Revenue will seek to recover the penalty as if it were tax.

An investigation by Revenue may result in criminal implications for a taxpayer. The Director of Public Prosecutions (DPP), not Revenue, is the State body that ultimately makes the decision as to whether or not a person should be prosecuted. Those convicted of tax offences may be liable to a fine or imprisonment, or both.

Where a person is convicted of a revenue offence, on summary conviction the individual can be liable to a fine of up to EUR5,000 and/or a period of imprisonment of up to 12 months. Where a person is convicted of a revenue offence on indictment, the individual can be liable to a fine of up to EUR126,790 and/or a term of imprisonment of up to five years. 

Revenue’s Code provides that where, in the course of a Level 2 or Level 3 intervention, Revenue uncovers information, not previously disclosed by the taxpayer, suggesting serious tax or duty evasion or that a revenue offence may have occurred, Revenue will inform the person by letter that a civil or criminal prosecution will be considered. As noted in 6.2 Criminal Penalties, the final decision in relation to whether any criminal prosecution will be brought rests with the DPP.

Key Legal Instruments

There are several legal instruments that form the basis of administrative co-operation in tax matters in Ireland. Information may be exchanged under the following instruments.

Council Directive (EU) 2011/16 on administrative co-operation in the field of taxation, as amended (DAC)

The DAC covers exchange of information relating to taxes of any kind levied by or on behalf of an EU member state (excluding VAT, customs and EU excise duties, as these are covered by other EU legislation) and obliges certain information to be exchanged between all member states of the EU. Exchanged information can be used for the assessment, administration and enforcement of all taxes and duties. The DAC has been implemented in Ireland pursuant to the EU (Administrative Cooperation in the field of Taxation) Regulations 2012.

Ireland’s tax treaties

All of Ireland’s DTAs contain an exchange-of-information article (typically Article 26) that enables exchange of information. Ireland’s older DTAs provide for exchange of information relating to direct taxes only, but more recent DTAs provide for exchange of information relating to taxes and duties of all kinds.

Ireland’s Tax Information Exchange Agreements (TIEAs)

Ireland has a number of TIEAs in force. TIEAs typically cover exchange of information relating to direct taxes but, depending on the TIEA, other taxes can also be included.

OECD/Council of Europe Convention on Mutual Administrative Assistance in Tax Matters (the “Convention”)

The Convention, which has been implemented in Ireland pursuant to the provisions of the Mutual Assistance in Tax Matters Order (SI No 34 of 2013), enables exchange of information relating to direct taxes and taxes on net wealth. 

As outlined in 7.1 Legal Framework for Administrative Co-Operation, there are a number of mechanisms in place enabling Revenue to exchange information. Depending on the relevant mechanism, the exchange of information that Ireland engages in can be on request, spontaneous or automatic. 

On Request

Exchange of information on request is facilitated under all of the mechanisms listed in 7.1 Legal Framework for Administrative Co-Operation. 

Spontaneous

All of the mechanisms listed in 7.1 Legal Framework for Administrative Co-Operation, other than Ireland’s TIEAs, provide for spontaneous exchange of information. For example, Article 9 of the DAC obliges EU member states to spontaneously exchange information where the tax base of another EU member state may be at risk. 

Automatic

Ireland participates in a number of automatic exchange-of-information initiatives, some of which include the following.

Ireland and the USA automatically exchange information pursuant to the Foreign Account Tax Compliance Act (FATCA) intergovernmental agreement, which is implemented in Ireland under Section 891E TCA and the Financial Accounts Reporting (United States of America) Regulations (as amended). The agreement provides for the bilateral and reciprocal exchange of information between Ireland and the USA in relation to accounts held in Irish financial institutions by US persons, and accounts held in US financial institutions by Irish tax residents.

Similarly, Ireland participates in automatic exchange of financial account information pursuant to the OECD’s Common Reporting Standard (CRS) framework. The CRS is similar to FATCA, in that under the CRS participating jurisdictions exchange the financial account information of non-resident account holders with the jurisdiction of tax residence of the account holders. The CRS has been implemented in Ireland pursuant to Section 891F TCA and the Returns of Certain Information by Reporting Financial Institutions Regulations.

Council Directive (EU) 2015/2376 (DAC3) provides for the mandatory automatic exchange of information on advance cross-border rulings and advance pricing arrangements (APAs) provided by Revenue to companies and other entities in respect of all taxes except VAT, customs duties, excise duties and compulsory social security contributions. With effect from 1 January 2026, Council Directive (EU) 2023/2226 (DAC8) expands the scope of DAC3 to include certain cross-border tax rulings involving individuals.

Country-by-Country Reporting (CbCR) has been implemented into Irish law under Section 891H TCA and the Taxes (Country-by-Country Reporting) Regulations. CbCR requires multinational groups with annual consolidated revenue of EUR750 million or more to file certain information with tax authorities, providing a global view of their operations and tax paid in the jurisdictions in which they operate. Revenue exchanges CbC reports filed with it with the competent authorities of relevant jurisdictions in which the multinational group operates on a quarterly basis. The exchange occurs under Ireland’s DTAs, TIEAs or the Convention. 

Joint Audits

In terms of other forms of international tax collaboration, a significant development for taxpayers in the EU in recent years has been the introduction of Article 12a of DAC7, which established a legal basis for joint audits between member states of the EU. 

Article 12a was implemented into Irish law by the Finance (No 2) Act 2023, which introduced a new Section 891L TCA. The provision means that, for periods beginning on or after 1 January 2024, there is now a legal basis for Revenue and other EU tax authorities to conduct joint audits in Ireland. A joint audit is an administrative enquiry conducted by Revenue and the competent authority of another EU member state linked to one or more persons of common or complementary interest to both tax authorities. As a result of DAC7, it is expected that, going forward, taxpayers – particularly multinationals – will experience greater joint audit activity in the EU. 

ICAP

Ireland also participates in the OECD’s International Compliance Assurance Programme (ICAP) and the EU’s European Trust and Cooperation Approach. The intention of both initiatives is to promote tax compliance on a co-operative basis between multinational enterprises and tax administrations in the jurisdictions in which they operate. Similar to joint audits, while participation in such initiatives in Ireland has been limited to date, it is expected that engagement with such initiatives by multinationals may increase going forward as experience with them grows.

Ireland has a mutual agreement procedure (MAP) programme. Although Ireland only formally established its international transfer pricing branch and formalised its MAP programme in 2015, it did engage in MAPs prior to this. 

In terms of legal basis, all of Ireland’s tax treaties provide for MAPs, typically under Article 25 of its DTAs. In its most recent peer review report on Ireland, the OECD confirmed that Ireland meets all the minimum standard requirements regarding availability of and access to MAPs. 

Taxpayers may also present a MAP request pursuant to the following mechanisms (although these avenues are limited to intra-EU disputes only):

• Article 6 of the EU Arbitration Convention in relation to transfer pricing-related adjustments or matters pertaining to allocation of profit to permanent establishments; and
• the EU Tax Dispute Resolution Mechanism (EU TDRM) where a dispute arises from the interpretation/application of a DTA or the EU Arbitration Convention in respect of income or capital earned in a tax year commencing on or after 1 January 2018.

The deadline for submitting a MAP request is determined by the relevant DTA. Ireland’s tax treaties typically follow Article 25 of the MTC, which provides that a request for a MAP must be submitted within three years from the first notification of the event that results or is likely to result in taxation not in accordance with the DTA. The relevant DTA should always be consulted to confirm the applicable time limit in each case. 

For applications that are made under the EU Arbitration Convention or the EU TDRM, the deadline is three years from the date of the first notification of the action resulting or likely to result in double taxation.

Revenue is also clear in their MAP guidance that any request submitted outside the time limit set forth in the relevant double tax treaty will not be accepted. 

Mandatory binding arbitration may apply in connection with MAPs, depending on the avenue pursued.

DTAs

Certain of Ireland’s DTAs contain mandatory binding arbitration clauses committing the contracting states to a process of arbitration in the event of no agreement being reached via a MAP. Ireland has opted into the mandatory binding arbitration clause in the MLI such that mandatory binding arbitration will apply to Irish DTAs where the treaty partner has also implemented the relevant provisions of the MLI. Regard must therefore be had to the particular DTA partner’s status under the MLI.

EU Arbitration Convention

If resolution is not achieved within 24 months, an advisory committee is set up to decide the case and deliver a decision within six months (unless both competent authorities, by mutual agreement and with the agreement of the taxpayer concerned, waive the 24-month time limit). The competent authorities must then act within six months in accordance with that decision, unless they reach an alternative agreement to eliminate double taxation.

EU TDRM

If resolution is not achieved within 24 months (36 months where extended), the taxpayer can request that an advisory committee be set up to decide the case and deliver a decision within six months (or by extension nine months). The competent authorities must then act within the period unless they reach an alternative agreement to eliminate double taxation.

Ireland established an APA programme effective 1 July 2016. Prior to this, Ireland accepted requests for bilateral APAs on an ad hoc basis where a DTA partner agreed to enter into bilateral APA negotiations. The programme only applies to transfer pricing issues (including the attribution of profits to a PE).

In terms of the legal framework for APAs in Ireland, an APA is only available where Ireland has a DTA in place with the other jurisdiction concerned. In the absence of a DTA, Ireland cannot consider an APA application or engage in APA negotiations. The enabling provision for an APA under a DTA is the MAP article. As noted in 8.1 Availability and Legal Basis, all of Ireland’s DTAs contain a MAP article. 

An application for a bilateral APA can be made by a company that is tax-resident in Ireland and by a PE of a non-resident company. Only cases that involve a transaction where the transfer pricing issues involved are complex and there is significant doubt, or where there would otherwise be a high likelihood of double taxation in the absence of an APA, will be accepted by Revenue into its APA programme. 

The most recent APA statistics for Ireland show that in 2024 it concluded ten APAs, for which it was recognised as the most improved jurisdiction for APAs by the OECD for 2025. 

Co-Operative Compliance Framework

Revenue operates a Co-Operative Compliance Framework (CCF) to create and develop a relationship between taxpayers and Revenue with a view to achieving a high degree of tax compliance and certainty.

The CCF is a voluntary programme that is available to groups with annual turnover in excess of EUR350 million. Certain types of companies such as “Section 110 companies”, funds (excluding REITs) and partnerships are excluded from joining the CCF.

The benefits for taxpayers who do participate can include fewer compliance interventions from Revenue and greater certainty in relation to their tax position. 

Opinions

Revenue’s guidance on APAs confirms that they will not enter into unilateral APAs (ie, an agreement solely between the taxpayer and Revenue and not involving another competent authority). Accordingly, purely domestic APAs are not a feature of the tax landscape in Ireland.

Revenue does, however, operate a system where taxpayers and their agents may seek an opinion from Revenue that the taxpayer’s analysis of the tax consequences of a proposed course of action or transaction is acceptable to Revenue. In order for Revenue to issue an opinion in relation to a proposed transaction or activity, the request must satisfy certain conditions. Opinions are not binding on Revenue, the taxpayer or an Irish court. In practice, Revenue does not generally depart from its opinions unless any facts or assumptions underpinning the opinion change. When granted, an opinion lasts for a maximum of five years.