Ireland is the European headquarters of many large corporations, including Apple and Google. The low taxes for companies have given the Republic a significant advantage over other European countries, Apple has been represented in the country with a branch since 1980.
The story of Apple in Ireland began in 1980 with a single manufacturing facility and 60 employees. Fast-forward to today, and Ireland is home to more than 6,000 Apple employees and a sprawling campus in the city of Cork.
On 29 August 2016, after a two-year investigation, Margrethe Vestager of the European Commission announced: "Ireland granted illegal tax benefits to Apple". The Commission ordered Apple to pay €13 billion, plus interest, in unpaid Irish taxes from 2004–14 to the Irish state.
Apple opened its first plant in Ireland in 1980 and now employs some 6,000 people on its campus in the city of Cork. Facebook established its international headquarters in Dublin in 2008, and Google announced its European headquarters would be in Ireland in 2003.
Tax Treaties - Ireland has 73 tax treaties with other countries such as; the US, UK, China, Japan, Australia, Canada and more. Tax exemptions - Start-up companies are exempt from corporation tax for their first three years, once profits are less than €320k. Tax credits - R&D Tax credit of 25%.
Ireland's membership of the European Union means that US companies can trade freely with Ireland and have easy access to the European market. Ireland's low corporate tax rate of 12.5% is another major factor that attracts US companies. This is significantly lower than the US corporate tax rate of 35%.
Global Tax Plans
While Ireland has been considered a tax haven by many for decades now, the global tax system that Ireland depends on to incentivize multinational corporations to move there is receiving an overhaul by a coalition of 130 nations.
In 2020, the European Commission ordered the iPhone maker to pay a record-breaking €13bn (£11.5bn) in back taxes to Ireland, saying it had benefited from a sweetheart tax deal that amounted to illegal state aid between 2003 and 2014.
"They're not just going to put in an Apple Store in a location because people think they should." One retail expert familiar with Apple's sales network in Ireland said the most-likely reason for the company's lack of interest in the Republic was simple: not enough customers to make it worthwhile.
Ireland has found deep success in courting interest and investment from U.S. companies thanks to its low taxes, highly skilled workforce, economic and political stability, and excellent location for accessing European markets and consumers.
Apple has smartly chosen Ireland to be its headquarters for one main reason. The amount of tax to be paid in Ireland is much lower than those of different countries. A few countries, along with Ireland have a tax rate as low as 12.5% while most countries have it much higher.
Google has managed to reduce the amount of the energy it uses worldwide to cool down its data system to just 12% of its energy bills. The chilly climate of Ireland makes the data processing center more energy efficient and hence greener to cool down its server.
The company's signature device has failed to gain a strong foothold in countries like China and India, as well as other markets in Asia, where most of the growth in smartphone sales is coming from.
Ireland is the European headquarters of many large corporations, including Apple and Google. The low taxes for companies have given the Republic a significant advantage over other European countries, Apple has been represented in the country with a branch since 1980.
As the leader of Apple's retail store and online teams, Deirdre supports their work to create exceptional experiences for millions of Apple customers around the world.
Google's Irish subsidiary has agreed to pay €218m (£183m) in back taxes to the Irish government, according to company filings.
Earnings from Apple's European subsidiary, and main European Union headquarters in Cork, Ireland, have risen $11.69 billion year over year.
Apple will expand its operations in Cork, Ireland with the addition of a new campus building at its Hollyhill campus that will create extra capacity to accommodate 1,300 employees. Construction of the four-story office building should be completed by mid-2025.
Subsidies. As we explained at the start of this article, Government taxation is a major reason why things are so expensive in Ireland. However sometimes the opposite - government subsidies - or rather a lack of them, can be the reason.
British Virgin Islands and Cayman Islands are the world's most popular corporate tax havens in the world for 2021 according to Corporate Tax Haven Index (by Tax Justice Network) which publishes a ranking of jurisdictions most complicit in helping multinational corporations underpay corporate income tax.
183 days or more in a tax year. or. 280 days or more in total, taking the current tax year plus the preceding tax year together. You will not be resident in Ireland if you are here for 30 days or less in a tax year.
Ireland is known the world over as a great place to do business. So when companies need to expand overseas Ireland is the perfect location. This is why, based in Ireland, there are over 700 top US companies. Together they employ over 150,000 people across the country.
US organisations are attracted to doing business in Ireland for a variety of reasons. These include access to the EU market, a stable political environment, the availability of a highly educated talent pool, a favourable taxation policy and quality of life.
Ireland is referred to as a tax haven because of the country's taxation and economic policies. Legislation heavily favors the establishment and operation of corporations, and the economic environment is very hospitable for all corporations, especially those invested in research, development, and innovation.