Ireland remains the most efficient country in the EU, in which it is possible to pay taxes for businesses, according to the latest PwC / World Bank survey of tax.
The report dealt with 189 economies around the world and take into account that all taxes was paid by companies. He analyzed the bureaucratic and administrative burdens imposed on businesses, when it comes to time spent on compliance, payment and registration of taxes, as well as the amount of tax imposed. Ireland took the 6th place in the world.
PwC and the World Bank found that a typical Irish company spends about a quarter of the total volume of commercial profit in taxes. This figure was 12.4 percent of the income taxes, 12.1 percent of labor taxes and 1.4 percent in other taxes. In addition, the company spends a little more than two weeks, on their tax affairs and makes the payment almost every six weeks.
PwC stressed that the statutory corporate tax rate in Ireland 12.5 percent, very close to the rate of “income tax” 12.4 percent.
In the report explained that within the EU and the European free trade area, company will pay 40.6 percent of its commercial profit in taxes, including income taxes of 12.6 percent, taxes on labor force of 26.5 percent and 1.5 percent in others taxes. On a world scale, the typical company spends 40.8 percent of its commercial profit in taxes, spends more than seven weeks of their tax affairs, and make tax payments every two weeks.
Joe Tynan, head of the Irish PwC tax, said: “Research shows that the presence of a simple tax systems with competitive rates of business taxation and a reliable and transparent tax regime gives Ireland a real advantage on the market for attracting direct investment. The study confirms that the tax system of Ireland continues to be one of the most effective and transparent in the EU. Despite the fact that no one likes to pay taxes, the Irish tax system makes it relatively easy to comply with the rules and less bureaucracy in comparison with other EU countries.”
He added: “The transparent Irish tax regime and low corporate tax rate, together with the relative ease of paying taxes, is vital for the continuation of support for Ireland’s position as a choice location for foreign direct investment. This transparency and the relative ease to pay taxes along with 72 agreements and R&D tax credit system of world class are important elements in giving us the opportunity to help multinationals to establish operations in Ireland, as well as to expand their activities here.”