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Ireland Corporate Tax Guide 2026

Ireland's corporation tax features a 12.5% rate on trading income (one of the lowest in the OECD), a 25% rate on passive and non-trading income, a 25% R&D tax credit, and a 6.25% Knowledge Development Box regime. Transfer pricing rules align with OECD guidelines. All amounts in EUR.

Ireland's Corporation Tax (CT) is administered by Revenue. The 12.5% trading rate has made Ireland a hub for multinational investment. For related guidance, see our Personal Income Tax Guide → and VAT Guide →.

Corporation Tax Rates 2026

  • 12.5% — trading income (active business income from goods/services)
  • 25% — passive income (rental, investment, royalties) and non-trading income
  • 25% — chargeable gains on disposals of assets that are not development land
  • 33% — chargeable gains on development land
  • 6.25% — Knowledge Development Box (KDB) on qualifying intellectual property income

R&D Tax Credit

  • A 25% tax credit (refundable) on qualifying research and development expenditure
  • Qualifies for both in-house and subcontractor R&D activities
  • Unused credits can be carried forward indefinitely or, in certain cases, refunded over 3 years
  • The credit is calculated on incremental expenditure above a base-year amount

Knowledge Development Box (KDB)

  • Effective tax rate of 6.25% on qualifying profits from certain intellectual property assets
  • Aligns with OECD BEPS Action 5 — modified nexus approach required
  • Qualifying assets include patents, copyright-protected software, and certain certified inventions
  • The qualifying profit is computed as a proportion of R&D expenditure relative to total expenditure

Transfer Pricing

  • Ireland applies OECD transfer pricing guidelines to transactions between associated enterprises
  • Documentation and arm's-length pricing required for cross-border and domestic transactions above certain thresholds
  • Master file, local file, and country-by-country (CbC) reporting required for groups exceeding €750m global revenue
  • Penalties apply for non-compliance with documentation requirements

Capital Allowances & Incentives

  • Plant and machinery: 12.5% straight-line or 25% reducing-balance
  • Industrial buildings: 4% straight-line over 25 years
  • Intangible assets: Capital allowances over 15 years for qualifying IP assets
  • Group relief: Trading losses can be surrendered between group companies

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