Ireland often gets a lot of flak from the US and the EU about being a "tax haven" with similarities drawn to the Isle of Man or the Cayman Islands. Irelands co

Ireland often gets a lot of flak from the US and the EU about being a "tax haven" with similarities drawn to the Isle of Man or the Cayman Islands. Irelands corporation tax rate is 12.5%, in the US the rate is often cited as 30% and similarly with France and Germany. However the "effective" corporate tax rate is actually lower than Irelands in many cases because there are many write offs and loop holes that mean companies rarely pay 30% and much closer to 8%. These writes offs and loop holes aren't really as available in Ireland and subsequently mean Irelands tax scheme is more transparent in the sense the perceived value is closer to the actual value. It's just a competitive and transparent tax policy that has been in place since 1960's. A lot of people here and in the media will use this as evidence that Ireland is a tax haven. I'll concede measures like the Double Irish were a step too far -- a 12.5% rate isn't. If Dropbox really wanted to I'm sure they could find plenty of write offs in the UK like Starbucks did. There might be other factors influencing this decision too though e.g. avoiding the UK because a Brexit is on the table. Ireland has a better climate for data centres compared to say the Cayman Islands.