Passive Income Tax Ireland

Royalty income earned by irish companies is generally taxable at the rate of tax for passive income of 25.

Passive income tax ireland. The higher rate i e. The standard rate for corporation tax is 12 5 in ireland. Legislation provides that certain dividend income e g. Income from rent or interest a rate of 25 applies.

For passive income e g. Trading rate passive rate 12 5 25 33 resident companies are taxable in ireland on their worldwide profits including capital gains. Non resident companies are subject to irish corporation tax only on trading profits generated in ireland. 25 also applies to income from a business carried on wholly outside ireland and to income from land dealing mining and petroleum extraction operations.

Income from foreign trades is taxed at 12 5 see the income determination section. However where an irish company is considered to be carrying on an ip trade that company s royalty and other similar income may be subjected to irish tax at the corporation tax trading rate of 12 5.