Taxation Systems Comparison

CountryIrelandNorthern IrelandScotlandWalesUK
Summary at a Glance
Corporate tax rate for trading income?12.5%12.5%19%19%19%
Corporate tax rate for non-trading income?25%12.5%19%19%19%
Effective Average Tax rate (EATR)?11.3%12%19.4%19.4%19.4%
Withholding taxes payable on dividends distributed by a resident company to a non-resident company?20%0%0%0%0%
VAT rate?23%20%20%20%20%
Corporate taxation
Annual filing of financial statements required?YesYesYesYesYes
Corporate tax rate?12.5%12.5%19%19%19%
Alternative minimum tax?NoNoNoNoNo
Effective Average Tax rate (EATR)?11.3%12%19.4%19.4%19.4%
Taxation of dividends received by the entity?YesNoNoNoNo
Taxation on trading income?YesYesYesYesYes
Capital gains taxation?33%NoNoNoNo
Link to main tax incentives/exemptions?LinkLinkLinkLinkLink
Withholding taxation
On dividends?20%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?YesNoYesYesYes
Landfill tax?US$97.6 / tonneUS$3.6 / tonne for less pollutiong material, US$116 / tonne otherwiseUS$3.6 / tonne for less pollutiong material, US$116 / tonne otherwiseUS$3.6 / tonne for less pollutiong material, US$116 / tonne otherwiseUS$3.6 / tonne for less pollutiong material, US$116 / tonne otherwise
Is landfill tax payable to the local government?YesNoYesYesYes
Anti-avoidance taxation rules
Thin capitalization requirement?NoYesYesYesYes
Specific anti-avoidance rules?YesYesYesYesYes
Compliance requirements
Tax year usually follows calendar year?YesNoNoNoNo
Link re penalties for late tax filings?LinkLinkLinkLinkLink
Personal taxation
Taxable income?> US$14,011> US$15,414>US$40,974> US$15,414>US$43,576
Link to income tax rates?LinkLinkLinkLinkLink
Capital gains taxation?33%18% / 28%10%-20%10%-20%10%-20%
Deductions and allowances?YesYesYesYesYes
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?YesYesYesYesYes
Link to tax treaties?74148148148148
Link to tax authority website?Office of the Revenue CommissionersHM Revenue & CustomsRevenue ScotlandWelsh Revenue AuthorityHM Revenue & Customs

Contact us

For additional information on our incorporation services, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Rashi Mittal, directly:
Consultant at HC - Rashi