Report: Irish tax code is among most transparent

Irish companies pay among the lowest corporate tax rates in the world, but the tax system is transparent and above board, according to a new survey which will likely be seized on by the Government to face down threats from Brussels.

Accountants PriceWaterhouseCoopers (PwC), which has in the past played a role in helping frame national corporate tax policy, said its survey with the World Bank showed the country’s effective tax rate levied on companies was close to the official 12.5% headline rate.

When all company taxes are taken into account, including labour taxes such as PRSI and other taxes, a medium-sized company based in Ireland will pay 26% of its profits in taxes.