Twitter has confirmed the opening of its third non-US office, joining Facebook and Google as web giants with headquarters in Dublin, reports the Guardian. AOL, Yahoo, eBay and PayPal also all have offices in the Irish capital, so why has this become the European centre for the web?
Part of it is due to the corporate tax rate. At 12.5 per cent, it’s less than half what companies would pay in London (where the tax rate is 28 per cent). But that’s not the only reason web-specific companies are flocking to Dublin.
Irish tax laws allow profits to be moved out of the country to tax havens. Google does this, moving a large sum of its profit to Bermuda before taxation. By setting up in Ireland, web-based companies can move revenue earned all over Europe to locations such as Bermuda and be taxed at a minimal rate.
Google, for example, pays 2.4 per cent tax on operations outside the U.S. after exploiting this loophole.
Combine this with the English language, and its easy to see why American big tech companies are choosing the city over other cities such as London, Berlin or Stockholm.
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