Bermuda, Cyprus and Ireland? What makes these countries similar? All of them are strongly associated with tax avoiding techniques. Despite low corporate taxes in Ireland were introduced long ago the issue became well-known due to litigation processes with Facebook and Apple. So, what is the secret magnet attracting big corporations to the emerald island work?
The strategy most of business giants benefit from is called “Double Irish with a Dutch Sandwich”.
Corporations transfer their profits to an Irish company, then through a Dutch company, and finally to another Irish company. In this way Irish companies play role of the bread while a Dutch company is a slice of cheese. This technique reduces corporate taxes and makes Ireland a taxing haven.
Though it’s not only scheme that gives businesses a chance to cut expenditures. One more solution is outsourcing, and by having a look at the infographic you’ll understand why it’s so.
The strategy most of business giants benefit from is called “Double Irish with a Dutch Sandwich”.
Corporations transfer their profits to an Irish company, then through a Dutch company, and finally to another Irish company. In this way Irish companies play role of the bread while a Dutch company is a slice of cheese. This technique reduces corporate taxes and makes Ireland a taxing haven.
Though it’s not only scheme that gives businesses a chance to cut expenditures. One more solution is outsourcing, and by having a look at the infographic you’ll understand why it’s so.
Infographic Source: https://qubit-labs.com/how-to-save-more-doing-business-in-ireland/
