How to find the best tax rate for internet marketing
New research suggests that for the best value, an internet marketing company will need to pay tax on all of its revenues, including advertising revenue.
In a report released by the Tax Institute of Ireland, which represents businesses operating in the digital economy, the tax rate of digital marketing businesses is set to increase from 7.75% to 9.25% over the next five years.
The study, which is the first to look at the tax rates of digital businesses, found that there are some areas where an online marketing company would have a higher tax rate than it would otherwise.
Online marketing companies operating in Ireland would pay a higher rate of the corporate income tax than they would otherwise, it found.
The report, published on Thursday, also examined the tax arrangements of the top 500 online marketing companies in the country.
It found that Ireland’s highest taxable company is the online advertising company Google.
In the digital advertising industry, companies in Ireland pay a much lower rate of corporation tax than companies in any other European Union country.
In 2016, the average corporate tax rate in the EU was 20.2%.
The Tax Institute report, however, found the highest tax rate among the top 5% of online advertising companies is set at 10.3%.
The study also highlighted the tax advantages of using the Irish digital market.
The online advertising market in Ireland is highly competitive, with companies offering competitive pricing, competitive service, competitive product delivery, and competitive customer service.
The Tax Institution found that this competitive advantage gives an incentive to start a business in Ireland, with the potential for tax savings to be enjoyed.