Corporation Tax

Corporation Rates
Standard Rate on Trading Income 12.5% from 1 January 2003
Investment/Rental Income 25%
Payment – 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. New or start up companies with a Corporation Tax liability of less than €200,000 in their first accounting period will not be required to pay Preliminary Corporation tax. The liability is paid when the return is filed.
Payment – Other Companies

  • Finance (No.2) Act 2008 provides for revised arrangements for the payment of preliminary tax by large companies with a tax liability of more than €200,000 (in their previous accounting period).
  • The new arrangements provides for payment of preliminary tax by large companies in two instalments.
  • The first instalment will be payable in the 6th month of the accounting period (i.e. 21st/23rd June for a company with calendar year accounts) and the amount payable will be 50% of the corporation tax liability for the preceding accounting period or 45% of the corporation tax liability for the current accounting period.
  • The second instalment will be payable (as before) in the 11th month of the accounting period i.e. 21st/23rd November for a company with calendar year accounts) and the amount payable will bring the total preliminary tax paid to 90% of the corporation tax liability for the current accounting period.
  • The revised arrangements apply generally where the accounting period is more than 7 months in length (for shorter accounting periods, preliminary tax of 90% of tax liability is payable in one instalment as before)
Start-Up Companies – 3 Year Tax Exemption
The scheme which provides relief from corporation tax on the trading income and certain gains of new start-up companies in the first 3 years of trading is being extended to include start-up companies which commence a new trade in 2012, 2013 or 2014.
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