In Germany the actual rate paid is 22.9 per cent and in the UK it is 23.2 per cent. President Nicolas Sarkozy has made clear his dislike of Ireland’s low corporation tax rate but his country’s effective tax rate for corporates is an amazingly low 8.2 per cent – below the Irish level. Earlier this month, an unnamed Irish official said that “based on our information, 25 per cent of all French companies did not pay any corporate tax in 2009”.
The Irish effective tax rate, at 11.9 per cent, is very close to its actual rate. This reflects Ireland’s desire to make its corporate tax regime as simple as possible, again so as to attract foreign direct investment. We do not have the range of write-offs other countries do.