who want to establish their business presence on the Irish market
should know that the country offers a favorable business environment, in which many economic sectors reported significant financial increases. Ireland
is, at the moment, the fastest developing economy in the European Union (EU)
, as many foreign investors choose to incorporate a company
provides one of the lowest corporate taxes in the EU (12,5%) and foreign investors from China
can benefit of many corporate incentives
under the provisions of the double taxation treaty (DTA)
signed by the two states; our team of Irish company formation specialists
can provide an in-depth presentation on the main benefits of the agreement
Taxes under the Ireland – China DTA
businessmen interested in setting up a company in Ireland
can avoid the double taxation
of their profits, under the Ireland – China DTA
. The provisions of the treaty
are available for residents of the both contracting states and it will apply on several income taxes
, as prescribed by the local legislation of each jurisdiction.
The Chinese party will apply the following income taxes:
• the individual income tax;
• the income tax available for foreign enterprises (and foreign investments);
• the local income tax.
The Irish income taxes refer to:
• the income tax;
• the capital gains tax.
A resident (individual or company) of one of the contracting states represents the entity which is liable to income taxes
in the territory of the country where the residency is issued; our team of Irish company incorporation representatives
can provide more details on the broad meaning of tax residency
Provisions of the DTA signed between Ireland and China
As a general rule, a Chinese company operating in Ireland
will be taxed in China
for its worldwide income. However, if the company operates in Ireland
through a permanent establishment, then the profits incurred through the establishment will be taxed in Ireland
The permanent establishment refers to a place of business, such as an office, a branch, a factory or a building site (in which the constructions are carried out for a period longer than six months) through which the foreign company obtains profits in Ireland.