A Double Irish Arrangement is a tax strategy that allows corporations that are not located in Ireland to take advantage of the country's 12.5% corporate tax rate. This strategy is accomplished by a company setting up a corporate subsidiary, or a smaller company controlled by the primary corporation, in Ireland and selling the foreign rights to its products. The subsidiary then sets up its headquarters in a tax haven. A second Irish subsidiary is set up by the primary Irish subsidiary to receive profits. According to Irish tax law, if a company is headquartered elsewhere, its profits aren’t subject to Irish taxes. In the US, the tax rate for corporations is generally about 35%.
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