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Yes sorry VAT (i called it sales tax for US readers to relate) We have a lowish corporation tax of 12.5% yes paid on company profits, but everything else is ve
by dcc1 13y ago
Yes sorry VAT (i called it sales tax for US readers to relate)
We have a lowish corporation tax of 12.5% yes paid on company profits, but everything else is very high!
For example out of a ~€39000 salary last year after all taxes i was left with €25000, things get rapidly worse from there if you want to move money from your company to yourself, people can check http://www.deloitte.ie/tc/ http://www.deloitte.ie/tc/ for ideas of what income taxes people pay here
As a director one could take a company loan (illegal above certain % but dont think anyone checks) but this would be liable to witholding tax of about 20%
Capital gains is 33% here.
And of course VAT of 23%..
tl.dr: the taxation structure here works great for large corporations who can hire expensive accountants to launder literally billions thru' Ireland to warmer climes
BUT for anyone running a normal small business, expect to hand over 20-40% of your earnings
and anything left after you pay income taxes for example, is heavily taxed with loads of stealth taxes (tv license, house tax, soon water tax etc etc) and of course 23% on anything you buy (essentials like food aside, some of these have lower VAT tax rate)
- merrua 13y agoDid you find it difficult to get Incorporated as well? or is was that fast, just everything afterwards tedious and slow? Did you found in Ireland?
- dcc1 13y agoNo incorporation was extremely easy and fast. Its afterwards when the fun begins especially if you are in IT where Revenue might not know how to tax you and you need get a written judgement (So they don't accuse you of not paying taxes). For example I would love to start a bitcoin related business but afraid of what decision they might make (according to newspaper last week they are still deciding) Overall starting business here is not too bad, its growing and expanding that is hard, and misconception that Ireland is low tax, it is not nor is it a cheap place to live. Everytime i hear americans complain about sales taxes I say you seen nothing yet :D
- merrua 13y agoIt would be an interesting book to read about the difficulty in growing a company in Ireland. I have not heard about the unique problems. U.K. yes. Continent of Europe yes.
- mnw21cam 13y ago> Yes sorry VAT (i called it sales tax for US readers to relate) Sales tax and VAT are different. http://en.wikipedia.org/wiki/Value_added_tax#Comparison_with_sales_tax http://en.wikipedia.org/wiki/Value_added_tax#Comparison_with... VAT only taxes the value added to goods by an entity, so if they buy parts for £10, make a widget from those parts, and sell a widget for £20, they pay VAT on £10, with the assumption that they entity that sold them £10 of parts paid VAT on the rest of it. There are also possibilities for running costs (such as purchasing a screwdriver to assemble the widget) that are not taxed, because they are not sold on to the public. Sales tax is repeatable, so tax may be paid for a particular good each time it passes hands. Yes, there are exceptions.