An Economic and Tax Overview of Companies with No Corporation Tax Liability
Abstract
Most Irish companies – around 55–60% between 2017 and 2023 – report no corporation tax (CT) liability and the factors for this remain unclear. Using administrative tax data, this paper examines the composition, characteristics, and economic contributions of these companies. The results show that persistent nil-liability is common and primarily arises from loss carry-forwards, capital allowances, and a large cohort of low-profit or non-trading companies, with patterns differing sharply across sectors and company ages. Despite low taxable profits, many of these companies generate substantial labour demand and exhibit active investment behaviour. Understanding these dynamics is essential for assessing the resilience and inclusiveness of Ireland’s corporate tax base.
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