One of the world’s biggest pharmaceutical firms, Pfizer Inc., has
been wanting to get out of the U.S. tax system for quite some time; however,
their focused destination may surprise some. Ireland has quickly become
a desirable country for many corporate businesses to locate their headquarters
or apportion their profits. This is due to the fact that not only is the
country full of educated workers and a largely English-speaking population,
but it also has a favorable tax treatment.
Pfizer wants to merge with Allergan PLC, which is in Dublin. This merger
would create the largest pharmaceutical giant and would have them based
entirely in Ireland. So what makes Ireland so attractive, especially to
businesses? Their corporate tax rate is 12.5 percent, which is less than
half of the U.S. statutory rate at 35 percent. Additionally, any profits
the company makes that is connected with a copyright or patent will soon
be given a 6.25 percent rate in Ireland. For Pfizer, this would apply
to a huge amount of their profits, since they have hundreds of patented products.
Discover more about why more and more businesses are exploring Ireland
as a possibility for their home base, as well as the details of Ireland’s
corporate tax structure, by calling us today.
For any more information or representation regarding international tax
law, call Castro & Co.