The corporative tax is the one related to the enterprises’ activity. Countries can compete among them decreasing this tax and, therefore, attracting the inversion of foreign enterprises, which will pay the tax in these countries and contribute to their development. Ireland has historically kept this tax lower than the rest of the European countries (12,5% against, for example, the 22% of United Kingdom) and it is supposed that its government has made agreements with big enterprises, such as Apple, to lower it even more for them (up to 2%) and, as a consequence, encourage them to settle in its territory.
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