Irish Tax

Ireland is an island nation with a strong maritime tradition. As a result, the Irish Tax and Legal system has been designed to make Ireland a very attractive place to do business for ship owners and operators. Talk to us today about how we can help you make the most of this opportunity for your business.

Corporation Tax Rates

A corporation tax of 12.5% applies to trading profits in all sectors including international services.

Tonnage Tax

A 12.5% rate of corporate tax applies on a nominal profit figure for certain shipping activities.

Qualifying shipping activities are:

  • the use of a qualifying ship for the purposes of carrying passengers or cargo by sea, for reward;
  • the provision of services, ancillary to that use, on board a qualifying ship;
  • the subjecting of fish to a manufacturing process on board a qualifying ship;
  • the letting on charter of a qualifying ship for use for those purposes where the operation of the ship and the crew of the ship remain under the direction and control of the company;
  • the use of a qualifying ship for the purposes of transporting supplies or personnel to, or providing services in respect of, a mobile or fixed rig, platform, vessel or installation of any kind at sea.

Under the tonnage tax regime, profits are calculated on the basis of a nominal profit according to the net tonnage of the ship concerned. The standard corporation tax rate for trading income is then applied to the specified profit base.

The nominal profit is calculated on a sliding scale, using the following rule:

1.00 Euro/100 net tons for the first 1,000 net tons
0.75 Euro/100 net tons from 1,000 up to 10,000 net tons
0.50 Euro/100 net tons from 10,000 up to 25,000 net tons
0.25 Euro/100 net tons over 25,000 net tons