Ireland is sixth easiest for paying business tax

IRELAND has emerged as one of the most hassle-free territories in which to pay business taxes, according to a new World Bank study, carried out by PricewaterhouseCoopers (PwC).

The report ranks Ireland as the easiest country in Europe and the sixth easiest in the world in which to pay business taxes. It is the second year running in which Ireland had such a ranking, in this regard, on a global scale.

The survey doesn’t just focus on corporate tax levels for foreign-owned enterprises, but looks at all taxes paid by businesses and measures the effectiveness of international tax systems and how companies are affected by compliance procedures as well as changing tax rates.

However, Colm Kelly, head of PwC Ireland’s tax practice, said Ireland’s attractiveness for foreign direct investment should be heavily boosted as a result.

“This is very good news for Ireland in the current difficult economic conditions. As the easiest place in Europe and sixth easiest place in the world to pay tax, Ireland is clearly in a leadership position in this area when attracting foreign direct investment.

“This survey demonstrates that having simpler tax systems, together with competitive business tax rates, gives Ireland a real advantage in the market for attracting direct investment.”

He added: “It’s interesting to note that one of the reasons why Ireland leads in Europe as the easiest country in which to pay taxes is due to the Revenue taking a proactive approach to make it “easier” for companies to deal with their obligations.”

Interestingly, Britain ranked as fourth in Europe with France and Germany 12th and 15th.

On a global level, Ireland came in behind the Maldives, Qatar, Hong Kong, the United Arab Emirates and Singapore.