Ireland VAT, Corporation Tax & PAYE Compliance Guide

Ireland's VAT system has multiple rates. Businesses must register for VAT when turnover exceeds thresholds, charge the correct rate, file returns, and remit VAT to Revenue.

• Register when goods turnover > €80,000 or services > €40,000
• Bi-monthly VAT returns via ROS (Jan/Feb, Mar/Apr, etc.)
• Annual Return of Trading Details (RTD) by 23rd of month
• Intra-EU acquisitions (VIES reporting)
• Reverse charge for certain B2B services
• VAT on property special rules

Ireland's competitive 12.5% Corporation Tax rate on trading income attracts global businesses. Companies must file CT1 returns within 9 months of accounting period end.

• 12.5% on trading income (one of Europe's lowest)
• 25% on non-trading (passive) income
• 15% Pillar Two minimum for companies with global revenue > €750M
• CT1 return due within 9 months of year-end
• Preliminary tax obligations (small company rules apply)
• R&D Tax Credit at 30% (refundable over 3 years)
• Knowledge Development Box (KDB) — 6.25% effective rate
• Transfer pricing rules for large enterprises

Ireland's PAYE system requires employers to report payroll to Revenue in real-time. Each pay run must be submitted on or before the pay date.

• Real-time reporting to Revenue on every pay date
• Revenue Payroll Notification (RPN) for each employee
• Income Tax, USC, PRSI, and LPT deductions
• Monthly remittance by 23rd of following month
• Employer's PRSI at 11.05% (most cases)
• BIK (Benefit in Kind) for company cars, health insurance, etc.
• Paternity, maternity, illness benefit integration

Applies to payments in the construction, forestry, and meat processing industries. Principal contractors must deduct RCT at 0%, 20%, or 35% depending on subcontractor status.

• Deduction rates: 0% (compliant), 20% (registered), 35% (unregistered)
• Principal must notify Revenue of each contract
• Deduction summary filed via ROS monthly
• Subcontractors claim credit on tax returns
• Applies to construction, forestry, meat processing
• Contract notification before first payment

ROS is Revenue's online platform for filing returns, making payments, and managing tax affairs. All businesses should be registered and use ROS for compliance.

• File VAT, CT1, PAYE, RCT, and all tax returns
• Make payments via ROS Debit Instruction (RDI)
• Digital certificates required for access
• Agent access for accountants and tax advisors
• Extended filing deadline (+23rd of month via ROS)
• Request tax clearance certificates online

Pay-Related Social Insurance contributions fund social welfare benefits. Both employers and employees contribute, with different classes for different employment types.

• Class A — most employees (employer 11.05%, employee 4%)
• Class S — self-employed (4% on all income)
• Class J — employees over 66 or earning below threshold
• Employer PRSI threshold: 0.5% if weekly pay ≤ €441
• USC (Universal Social Charge): 0.5%–8% on gross income
• Reported and paid via PAYE Modernisation