Ireland: Favorable Corporate Tax Rate
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.