I understand how the 12.5% corporation tax rate is attractive to multinationals. However, is it really so useful to small owner-managed private companies? If a company makes a profit of €20,000 after director's (100% shareholder) salary €75,000 and maximum pension contribution, the profit will be taxed at 12.5% (€2,500). Isn't this dead money? Is the director better off receiving a bonus of €20,000 despite it being taxed at 52% and therefore leaving no company profits taxed at 12.5%? At least the net salary (€10,400) is his own rather than the company paying €2,500 in corporation tax. Is my logic flawed and am I missing something?