Low corporation tax rates have always been a feature of industrial policy in Ireland.
Employers are obliged to pay PRSI contributions.
The general rate applying is 10.75%. This may be lower, depending on the level of salary.
Pension contributions paid on behalf of employees are tax deductible. There is no statutory obligation to pay pension contributions on behalf of employees. However, it is common practice for a company to contribute in the range of 5-10% of the employee's salary. Under recently introduced legislation, all employers must offer the facility of setting-up a PRSA-type pension plan where there is no existing pension plan in place.
Employees are generally liable to PRSI at a rate of 4% of on earnings up to 52,000 p.a., except the first €127 per week. Employees earning €352 or less per week are exempt form PRSI.
The PRSI rate is applied to the gross salary and benefits after deduction of pension contributions.
Foreigners resident and working in Ireland are generally covered by the Irish social security system, provided that the necessary documentation is in place.
Levies amounting to 1% up to €100,100 p.a. and 2% on income > €100,100 are payable.
PRSI contributions: Ireland provides a high level of coverage with respect to full-rate social insurance contributions, eg: dental, health, unemployment benefits, state pension and maternity benefits.
