Sunday 20 January 2019

Ireland is easiest country in EU for firms to pay tax

Ireland is the easiest country in the EU for companies to pay tax in, according to a new report. Stock image
Ireland is the easiest country in the EU for companies to pay tax in, according to a new report. Stock image
Gavin McLoughlin

Gavin McLoughlin

Ireland is the easiest country in the EU for companies to pay tax in, according to a new report.

The report by PwC said Ireland was well ahead of the EU average for the amount of time it takes companies to comply, the number of payments they have to make, and the time it takes to make corporate tax corrections after filing.

Ireland ranked fourth in the world out of 190 economies, behind Hong Kong in first, and the UAE and Qatar who were joint second.

"Ranking as the most effective in the EU for paying taxes, Ireland remains a very attractive location in which to do business. The report highlights that Ireland does very well in terms of tax competitiveness. And when you take labour and other taxes into account, Ireland's total tax rate on corporate profits is much lower when compared with many other EU countries," PwC Ireland head of tax Joe Tynan said.

PwC said businesses can make it easier to pay tax by using technology like data analytics and robotics.

"We see tax departments increasing their data and digital capabilities with user-friendly software and automation tools allowing compliance to be automated and embedded in the day-to-day business administration," Peter Reilly, tax policy leader at PwC Ireland, said.

"Technology can also reduce the time needed to understand and address the complexities of changing legislation... and managing the challenges that modern businesses face."

Irish Independent

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