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Ireland remains the most effective EU country for ease of paying tax

PWC and the World Bank recently released their latest version of the Paying Taxes in 2019. It is an analysis of how tax software and reporting systems are changing the way companies meet their tax obligations. It also looks at how tax authorities enforce these obligations. It gives a good insight into not only the cash cost of tax in a country but also how bureaucratic it is. Afterall, time is money!

Ireland comes out of this survey very favourably. Ireland remains most effective coutry in EU for paying taxes. See below for a snapshot of this:

Country % Profits in Tax Time to Comply (hours) Rank
(out of 189)
Ireland 26 82 4
Denmark 23.8 132 9
Netherlands 40.8 119 21
Sweden 49.1 122 27
Germany 49 218 43
France 60.4 139 55
Poland 40.7 334 69
Hungary 40.3 277 86
Italy 53.1 238 118

The report highlights that Ireland has a very competitive tax system in terms of cost and compliance. This another factor in why Ireland is a very attractive location to setup a company in.

Ireland's total tax rate on corporate profits is much lower when compared with many other EU countries such as the UK, Germany, Sweden and France.

The report shows that Irish companies pay a total of 26% of its profits in taxes compared to 39.3% for the EU and 40.3% globally.  This is made up of:

  • 12.4% in profit taxes
  • 12.2% in labour taxes (which in Ireland this is mostly PRSI) 
  • 1.4% in other taxes (e.g. VRT, etc)

Ireland continues to compare well on labour taxes (12.2%) compared to the average for the EU (25.6%).  Ireland is substantially more competitive on the cost of employing people than most other EU countries.

If you are looking to setup a company in Ireland and have company law or tax questions, get in touch with us using the form below:

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