Taxation of Holding Companies in Ireland

A holding company in Ireland is registered for the sole purpose of owning and managing other legal entities. Ireland has become an attractive business destination for the registration of holding companies due to numerous tax advantages and tax exemptions (for example, this type of company can benefit from a capital gains participation exemption). 

Taxation system applicable to Irish holding companies - explained by our experts in company formation in Ireland 

• • the passive income of a holding company is taxed at the standard rate of 25%; 
• • in the situation in which the company does not qualify for a tax exemption on the capital gains, it will be taxed at the standard rate of 33%;
• • the capital gains tax is not applicable if the holding company holds directly or indirectly minimum 5% of the ordinary share capital for a period of at least one year;
• • a holding company that has disposable shares has to be a tax resident in one of the countries with which Ireland signed a treaty for the avoidance of double taxation. 

How is the corporate income tax applied to Irish holding companies?