Taxation Systems Comparison in 2023
| Country | Ireland | Northern Ireland | Scotland | Wales | UK |
|---|---|---|---|---|---|
| Summary at a Glance | |||||
| Corporate tax rate for trading income? | 12.5% | 25% | 25% | 25% | 25% |
| Corporate tax rate for non-trading income? | 25% | 25% | 25% | 25% | 25% |
| Effective Average Tax rate (EATR)? | 11.3% | 19.4% | 19.4% | 19.4% | 19.4% |
| Withholding taxes payable on dividends distributed by a resident company to a non-resident company? | 25% | 0% | 0% | 0% | 0% |
| VAT rate? | 23% | 20% | 20% | 20% | 20% |
| Corporate taxation | |||||
| Annual filing of financial statements required? | Yes | Yes | Yes | Yes | Yes |
| Corporate tax rate? | 12.5% | 25% | 25% | 25% | 25% |
| Alternative minimum tax? | No | No | No | No | No |
| Effective Average Tax rate (EATR)? | 11.3% | 19.4% | 19.4% | 19.4% | 19.4% |
| Taxation of dividends received by the entity? | Yes | No | No | No | No |
| Taxation on trading income? | Yes | Yes | Yes | Yes | Yes |
| Capital gains taxation? | 33% | No | No | No | No |
| Link to main tax incentives/exemptions? | Link | Link | Link | Link | Link |
| Withholding taxation | |||||
| On dividends? | 25% | 0% | 0% | 0% | 0% |
| On interest paid? | 20% | 0%-20% | 20% | 20% | 20% |
| On royalties paid? | 20% | 0%-20% | 20% | 20% | 20% |
| Technical service fees? | 0% | 0% | 0% | 0% | 0% |
| Branch remittance tax? | 0% | 0% | 0% | 0% | 0% |
| Other Corporation Taxes | |||||
| Capital duty? | 0% | 0% | 0% | 0% | 0% |
| Payroll taxes? | 0% | 0% | 0% | 0% | 0% |
| Social security contributions? | 10.75% | 13.8% | 9%-13.8% | 9%-13.8% | 9%-13.8% |
| Stamp duty land tax? | 1%-6% | 0%-12% | 0%-12% | 0%-12% | 0%-12% |
| Is land transaction tax payable to local government? | Yes | No | Yes | Yes | Yes |
| Landfill tax? | US$97.6 / tonne | US$3.6 / tonne for less pollution material, US$116 / tonne otherwise | US$3.6 / tonne for less pollution material, US$116 / tonne otherwise | US$3.6 / tonne for less pollution material, US$116 / tonne otherwise | US$3.6 / tonne for less pollution material, US$116 / tonne otherwise |
| Is landfill tax payable to the local government? | Yes | No | Yes | Yes | Yes |
| Anti-avoidance taxation rules | |||||
| Thin capitalization requirement? | No | Yes | Yes | Yes | Yes |
| Specific anti-avoidance rules? | Yes | Yes | Yes | Yes | Yes |
| Compliance requirements | |||||
| Tax year usually follows calendar year? | Yes | No | No | No | No |
| Link re penalties for late tax filings? | Link | Link | Link | Link | Link |
| Personal taxation | |||||
| Taxable income? | > US$14,011 | > US$15,414 | >US$40,974 | > US$15,414 | >US$43,576 |
| Link to income tax rates? | Link | Link | Link | Link | Link |
| Capital gains taxation? | 33% | 18% / 28% | 10%-20% | 10%-20% | 10%-20% |
| Deductions and allowances? | Yes | Yes | Yes | Yes | Yes |
| Net wealth/net worth taxes? | 0% | 0% | 0% | 0% | 0% |
| Inheritance taxes? | 33% | 40% after US$422,734 | 40% after US$422,734 | 40% after US$422,734 | 40% after US$422,734 |
| Value added tax | |||||
| VAT Rates? | 23% | 20% | 20% | 20% | 20% |
| VAT Registration required? | Yes | Yes | Yes | Yes | Yes |
| Link to tax treaties? | 74 | 148 | 148 | 148 | 148 |
| Link to tax authority website? | Office of the Revenue Commissioners | HM Revenue & Customs | Revenue Scotland | Welsh Revenue Authority | HM Revenue & Customs |
