IS IRELAND A ‘LOW TAX’ ECONOMY?
Despite the popular misconception constantly peddled that Ireland is a “low-tax economy”, it appears we are nowhere near the bottom of the OECD list when it comes to our tax regime, according to a survey by accountancy firm KPMG, reported in The Sunday Business Post.
Ireland’s personal income tax rates are lower than Denmark, Sweden and The Netherlands but higher than those in the US, Canada, New Zealand and Switzerland. Among EU countries, we rank lower than the Nordic countries but higher than most central and Eastern European countries.
Meanwhile, finance minister Brian Lenihan has told the EU Commission a common corporate tax across Europe would only serve to create “winners and losers” among member states.
Whether Lenihan’s arguments can raise the European siege over Ireland’s favourable 12.5% corporate tax remains highly questionable and will likely become a moot point if Ireland has to avail of an EU bailout.