Barely a week goes by without Ireland’s much published corporate tax rate making the news. Whether it's foreign leaders decrying Ireland’s supposedly unfair tax advantage or yet another corporate giant making Ireland their home, Ireland’s tax rate remains as controversial as ever.
So why does our corporate tax rate generate so many headlines? While Ireland’s 12.5% corporate tax rate is certainly low when compared to the European average of 19.35%, this 12.5% isn’t the lowest in the world. The distinction of the world’s lowest corporate tax rate is shared between Hungary and Montenegro. Both Hungary and Montenegro offer a 9% tax rate to corporations.