Low corporation tax remains a cash cow in tough times

IN ALL the coverage of the 2003 Budget, very little attention was given to one of its most significant provisions.

While most of us will probably pay more tax next year, one sector saw its burden diminish by nearly a quarter. Nobody paid any attention because it was no surprise. From January 1, corporation tax will fall from 16% to 12.5%.

Low as that is, some companies get away with paying even less. Any firm that’s been set up in Ireland since mid-1998 and is working in the manufacturing or internationally traded services sector only pays 10% tax on its profits.