Double Irish arrangement
![Example of a double Irish with a Dutch sandwich:1. An advertiser pays for an ad in Germany.2. The ad agency sends money to its subsidiary in Ireland, which holds the intellectual property (IP).3. Tax payable in Ireland is 12.5 percent, but the Irish company pays a royalty to a Dutch subsidiary, for which it gets an Irish tax deduction.4. The Dutch company pays the money to yet another subsidiary in Ireland, with no withholding tax on inter-EU transactions. 5. The last subsidiary, although it is in Ireland, pays no tax because it is controlled outside Ireland, in Bermuda or another tax haven.](/Images/godic/202501/10/Double_Irish_with_a_Dutch_Sandwich.svg1038.png")
The double Irish arrangement was a tax strategy that some multinational corporations used to lower their corporate tax liability. The strategy has ceased to be available since 1 January 2015, though those already engaging in the arrangement have until 2020 to find another arrangement. The strategy used payments between related entities in a corporate structure to move income from a higher-tax country to a lower or no tax jurisdiction. It relies on the fact that Irish tax law does not include transfer pricing rules as does the United States and those of many other jurisdictions. Specifically, Ireland has territorial taxation, and does not levy taxes on income booked in subsidiaries of Irish companies that are outside the state.