🇮🇪 The Irish Corporate Tax Bonanza

What We’re Showing

This chart tracks corporate tax revenues paid to the Irish government between 2004–2023 in billion euros. Data is sourced from Revenue.ie, the government’s tax, customs, and revenue department.

What’s Going on in Ireland?

For decades, U.S. tech and pharmaceutical firms headquartered in Ireland. And under the Double Irish loophole, they avoided paying taxes on their non-U.S. revenues.

With pressure from the U.S. and EU, the Irish government closed the loophole in 2015, forcing firms to pay taxes on profits routed through Ireland subsidiaries.

As a result, corporate tax revenues in Ireland have skyrocketed, leading to budget surpluses.

What is the Double Irish?

A U.S. firm has two Irish subsidiaries. Irish subsidiary A sells products internationally (outside the U.S.) and pays royalties to a second Irish subsidiary (B) holding intangible intellectual property assets.

Subsidiary B is registered in Ireland but managed from a low-tax jurisdiction. Irish law considers it a tax resident of a no-tax jurisdiction and doesn’t charge taxes. U.S. law considers it a tax resident of Ireland and doesn’t charge taxes.

As a result, the firm avoids taxation on its international revenues.