CORPORATE/CAPITAL TAXES

CORPORATE TAXES

Standard Rate on Trading Income* 12.5% from 1 January 2003
Investment/Rental Income 25%
Manufacturing Rate 10% (only for established qualifying companies)
*Special rates apply to dealings in land

Small Companies

With effect from 6 December 2007 a small company is a company with a corporation tax liability of less than €200,000 in the preceding year.Preliminary tax of at least 90% of the liability for the period or 100% of previous year’s liability is due one month (by the 21st day of that month) before the end of the accounting period.

Other Companies
Preliminary Tax for an accounting period commencing before 14th October 2008 of at least 90% of the liability for the period is due one month (by the 21st day of that month) before the end of the accounting period.In respect of accounting periods commencing after 14th October 2008 preliminary tax is due in two installments.The first installment will be payable in the sixth month of the accounting period (by the 21st day of that month) and the amount payable will be 50% of corporation tax liability in the preceding accounting period of 45% of corporation tax liability for the current accounting period.The second installment will be payable in the eleventh month (by the 21st day of that month) of the accounting period and the amount payable will bring the total preliminary tax paid to 90% of the corporation tax liability for the current accounting period.

The final balance is payable at the Return filing date i.e. 21st day of the ninth month following the end of the accounting period.

New or Start-Up Companies
New or start-up companies which commence trading in 2010 and 2011 will be exempt from tax, including capital gains, in each of the first three years to the extent that their tax liability in the year does not exceed €40,000. However the scheme is being modified from 2011 so that the value of the relief will be linked to the amount of employer’s PRSI paid by a company in an accounting period subject to a maximum of €5000 per employee. If the amount of qualifying employer’s PRSI is lower than the reduction in corporation tax liability otherwise applicable relief will be based on the lower amount.