Corporation Tax

Although the rate of corporation tax is relatively low it still represents a significant annual cost to any profitable business. In order to facilitate the growth of your company it is vital to ensure that the most tax efficient structure is in place and all possible reliefs and incentives are availed of.

In addition to submitting annual tax returns for Irish and UK companies, our tax department can assist you in the following areas: 

  • Corporate Structure - Should you incorporate your business or continue as a sole trader? Should your different businesses be held in one company, in separate companies, or within a corporate group? Should you buy shares in a new company directly or via a holding company? We can advise you on the most tax efficient structure given your current needs and future plans.
  • Mergers, Acquisitions, Reorganisations - We can advise you on the tax efficient partition of businesses within your company, whether to facilitate the sale of part of your business or to achieve a more desirable group structure going forward. We can also advise you on the most tax efficient way in which you or your company can acquire the shares or business of another. Our tax specialists can also assist in the tax due diligence examination of any company you may be buying or selling.
  • Extracting assets / realising shareholders value - Our corporate tax department can advise you on the most tax efficient manner in which to extract value from your company, both on an ongoing basis and when it comes to retirement and disposing of your shares in the company.
  • Research and Development - We can advise you on how to avail of the very generous tax incentives available for research and development activities carried out in Ireland, including accelerated capital allowances and tax credits for incremental expenditure.  We can also provide expert advice and assistance on management buyouts, company share buybacks, and any day-to-day tax issues which may arise in running a company
  • Inward and Outward Investment - Should you wish to set up a company in Ireland, we can advise you on how to avail of the 12.5% rate of tax and the repatriation of profits. Should you wish to expand your business to a location outside Ireland we can advise you on the most efficient structure (branch, subsidiary, separate company) and the optimum way in which to repatriate profits from your overseas activities.

CORPORATION TAX FACTS

  Rates
Trading Income 12.5%
Investment Income (note) 25%
Chargeable Gains 33%

Note: After tax investment income is subject to a 20% surcharge if it is not paid out as a dividend within 18 months of a company’s year-end.

Dividend Withholding Tax 20% (subject to exemptions for dividends paid to EU and DTA countries)

Capital Allowances Rates
Plant & Equipment 12.5%
Energy Efficient Equipment 100%
Motor Vehicles 12.5%
Industrial building (manufacturing) 4%
Industrial Buildings (renewal areas) 50% / 4%

Pay & File Dates

  • One month before year end - pay 90% of actual liability or 100% of the previous year’s liability, if less than €200,000.
  • Nine months after year end - file corporation tax return and pay balance of tax.