Photo AI
Explain the following types of taxation - Leaving Cert Business - Question 7 - 2019
Question 7
Explain the following types of taxation. (i) Corporation Tax: (ii) Value Added Tax:
Worked Solution & Example Answer:Explain the following types of taxation - Leaving Cert Business - Question 7 - 2019
Step 1
Corporation Tax:
Answer
Corporation tax refers to the annual tax on a company’s profits. In Ireland, the current corporation tax rate for the manufacturing industry is 12.5%. This is considered one of the lowest rates in Europe, designed to attract foreign direct investment and stimulate economic growth.
Step 2
Value Added Tax:
Answer
Value Added Tax (VAT) is a tax levied on the sale of goods and services and is included in the price of most products and services used by consumers. It is charged at every stage of the supply chain, from the manufacturer to the wholesaler to the retailer and finally to the consumer. The standard VAT rate is 23%, although lower rates may apply to certain essential goods and services. Some items, such as basic foods, may even be exempt from VAT, having a zero rate.