Corporation Tax

Standard Rate on Trading Income 12.5% from 1 January 2003 Investment/Rental Income 25% Manufacturing, IFSC and Shannon companies Rate 10% (only for established qualifying companies) Special rates apply to dealings in land   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 Accounting Period Ending Before 14th October 2008 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. The second instalment consisting of the balance of the tax is required when the tax return is filed Accounting Period Ending After 14th October 2008 In respect of accounting periods commencing after 14th October 2008 preliminary tax is due in three 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 or 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. Start-Up Companies New start-up companies which commence trading in 2009 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.

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