'Pillar Two' reforms boost tax take from Regeneron by €86m

The Pillar Two reforms envisage that firms with revenues over €750m be subject to minimum corporate tax rate of 15%

Regeneron in Limerick. Reforms aimed at increasing the corporate tax take from large firms delivered an additional $100m (€86m) in tax from the main Irish unit of the biotechnology giant last year.

Reforms aimed at increasing the corporate tax take from large firms delivered an additional $100m (€86m) in tax from the main Irish unit of biotechnology giant Regeneron last year.

New accounts show that pre-tax profits at Regeneron Ireland DAC last year increased by 56%, from $1.47bn to $4.09bn (€3.55bn).

Revenues rose 8% from $11.15bn (€9.67bn) to $12.15bn (€10.53bn).

The corporation tax charge for 2024 totalled $608.18m (€527m). The accounts show that the Pillar Two international corporation tax reforms introduced at the start of 2024 delivered an additional $98.8m (€85.6m) in corporation tax for the Irish exchequer. 

The Pillar Two reform envisages that firms with revenues over €750m be subject to an effective minimum corporate tax rate of 15%.

The total $608.18m corporation tax charge is an 88% increase on the firm’s corporation tax charge of $322.35m for 2023.

The sharp increase in Regeneron Ireland’s DAC corporation tax payout came against the background of Ireland’s corporation tax take increasing by 18% last year to €28bn, before the €11bn from the Apple tax case is taken into account.

The revenues recorded by the Irish-based unit account for 85.5% of Regeneron’s global revenues of $14.2bn in 2024.

Regeneron Ireland DAC paid out a dividend of $4.3bn to its parent, Regeneron Atlantic Holdings (RAH).

Regeneron has gone from strength to strength since it established its Irish HQ at the former Dell site in Limerick.

Since 2013, when Regeneron first announced plans to invest in operations in Ireland, the company has consistently exceeded job and investment projections for its Irish operations.

Numbers employed at Regeneron Ireland DAC last year increased from 1,868 to 2,082 made up of 1,889 in production, 69 in R&D, 111 in administration, and 13 in commercial.

The company’s staff costs last year increased from $279m to $317m which included share-based payments of $63.3m.

The profit takes account of $668.6m in non-cash amortisation costs and non-cash depreciation costs of $88.52m.

Cash funds decreased from $139.07m to $61.6m.