Ireland has the most efficient corporate tax system in Europe with the least red tape, according to a study from PwC and the World Bank.
The report found that the effective corporate tax rate in Ireland – the amount of tax paid as a percentage of profits – was 12.4 per cent, close to the statutory corporate tax rate of 12.5 per cent. In France, the headline rate is 33 per cent but the effective rate is closer to 7.5 per cent.
The tax system here also continues to be one of the most efficient in terms of bureaucracy and administration, the Paying Taxes 2015 report found.
Irish companies spend an average of 80 hours a year complying with the tax regime compared to 218 hours in Germany. This was the fourth lowest time in Europe, with the region recording an average of 176 hours.
The study also found that a typical Irish company spends two weeks dealing with its tax affairs and makes a tax payment almost every six weeks, compared with a global average of more than seven weeks dealing with tax affairs and a payment every two weeks.
Labour taxes paid by businesses in Ireland were also below both the global and EU averages at 12.1 per cent compared to an EU average of 26.3 per cent and a global average of 16.3 per cent.
See at: http://www.businesspost.ie/#!story/Home/News/Irish+corporate+tax+system+most+efficient+in+Europe%2C+study+says/id/87198161-2385-472e-f001-18ed15922026