Category: Blog

The Revenue have a set timetable for the making and filing of returns for Companies. Not all taxes apply to all companies – generally most companies only deal with Corporation Tax, VAT and PAYE / PRSI. We outline a list below of the main taxes and their monthly schedules for 2026 and feel free to call us if you need assistance with these:

January 2026

Return and payment dates for the month of January
Date	Type of return
14	PAYE/PRSI/USC/LPT P30 monthly return and payment for December 2025 P30 quarterly return and payment for October – December 2025
14	DWT: Return and payment of DWT for December 2025
14	PSWT: F30 monthly return and payment for December 2025
15	LPT: Commencement of monthly direct debit payments
19	VAT: Bi-Monthly VAT 3 return and payment (if due) for period November – December 2025 together with the Return of Trading Details where the accounting period ends between the 1st November and the 31st December
20	VAT: MOSS VAT return and payment (if due) for the period October – December 2025
*1-23	Corporation Tax: Prelim Tax for APs ending between 1-29 February 2026
*1-23	Corporation Tax: Returns for APs ending between 1-30 April 2025
23	RCT: RCT monthly return and payment for December 2025
31	Capital Gains Tax: Payment due on gains arising between 1 December 2025 to 31 December 2025 inclusive

* Where the return and payments are not received electronically, the return and payments filing date is 1-21 of the relevant month.

February 2026

Return and payment dates for the month of February
Date	Type of return
14	PAYE/PRSI/USC/LPT: P30 monthly return and payment for January 2025
14	DWT: Return and payment of DWT for January 2026
14	PSWT: F30 monthly return and payment for January 2026
15	PSWT: F35 annual return for year ended 31 December 2025
15	PAYE/PRSI/USC/LPT: Due date submission of Form P35 for year ended 31 December 2025
*1-23	Corporation Tax: Prelim Tax for APs ending between 1-31 March 2025
*1-23	Corporation Tax: Returns for APs ending between 1-31 May 2025
23	RCT: RCT monthly return and payment (if due) for January 2026
23	Income Tax: Due date submission of SARP Employer Return for year ended 31 December 2025

* Where the return and payments are not received electronically, the return and payments filing date is 1-21 of the relevant month.

March 2026

Return and payment dates for the month of March
Date	Type of return
14	PAYE/PRSI/USC/LPT: P30 monthly return and payment for February 2026
14	DWT: Return and payment of DWT for February 2026
14	PSWT: F30 monthly return and payment for February 2026
19	VAT: Bi-Monthly VAT 3 return and payment (if due) for period January /February 2026together with the Return of Trading Details where the accounting period ends between the 1st January and the 29th February
21	LPT: Single Debit Authority deduction from bank account
*1-23	Corporation Tax: Prelim Tax for APs ending between 1-30 April 2026
*1-23	Corporation Tax: Returns for APs ending between 1-30 June 2025
23	RCT: RCT monthly return and payment (if due) for February 2026
1-31	Corporation Tax: Returns of Third Party Information for APs ending between 1-30 June 2025
31	Income Tax: Return of Share Options and other Rights for 2025
31	Income Tax: Deadline for claiming Separate Assessment for 2026
31	Income Tax: Deadline for nominating Assessable Spouse or Nominated Civil Partner for 2026

* Where the return and payments are not received electronically, the return and payments filing date is 1-21 of the relevant month.

April 2026

Return and payment dates for the month of April
Date	Type of return
14	PAYE/PRSI/USC/LPT: P30 monthly return and payment for March 2026 P30 quarterly return and payment for January – March 2026
14	DWT: Return and payment of DWT for March 2026
14	PSWT: F30 monthly return and payment for March 2026
20	VAT: MOSS VAT return and payment (if due) for the period January – March 2026
*1-23	Corporation Tax: Prelim Tax for APs ending between 1-31 May 2026
*1-23	Corporation Tax: Returns for APs ending between 1-31 July 2025
23	RCT: RCT monthly return and payment (if due) for March 2026

* Where the return and payments are not received electronically, the return and payments filing date is 1-21 of the relevant month.

May 2026

Return and payment dates for the month of May
Date	Type of return
14	PAYE/PRSI/USC/LPT: P30 monthly return and payment for April 2026
14	DWT: Return and payment of DWT for April 2026
14	PSWT: F30 monthly return and payment for April 2026
19	VAT: Bi-Monthly VAT 3 return and payment for period March – April 2026 together with the Return of Trading Details where the accounting period ends between the 1st March and the 30th April
*1-23	Corporation Tax: Prelim Tax for APs ending between 1-30 June 2026
*1-23	Corporation Tax: Returns for APs ending between 1-31 August 2025
23	RCT: RCT monthly return and payment (if due) for April 2026

* Where the return and payments are not received electronically, the return and payments filing date is 1-21 of the relevant month.

June 2026

Return and payment dates for the month of June
Date	Type of return
14	PAYE/PRSI/USC/LPT: P30 monthly return and payment for May 2026
14	DWT: Return and payment of DWT for May 2026
14	PSWT: F30 monthly return and payment for May 2026
*1-23	Corporation Tax: Prelim Tax for APs ending between 1-31 July 2026
*1-23	Corporation Tax: Returns for APs ending between 1-30 September 2025
23	RCT: RCT monthly return and payment (if due) for May 2026

* Where the return and payments are not received electronically, the return and payments filing date is 1-21 of the relevant month.

July 2026

Return and payment dates for the month of July
Date	Type of return
14	PAYE/PRSI/USC/LPT: P30 monthly return and payment for June 2026 P30 quarterly return and payment for April – June 2026
14	DWT: Return and payment of DWT for June 2026
14	PSWT: F30 monthly return and payment for June 2026
19	VAT: Bi-Monthly VAT 3 return and payment (if due) for period May – June 2026 together with the Return of Trading Details where the accounting period ends between the 1st May and the 30th June
20	VAT: MOSS VAT return and payment (if due) for the period April – June 2026
*1-23	Corporation Tax: Prelim Tax for APs ending between 1-31 August 2026
*1-23	Corporation Tax: Returns for APs ending between 1-31 October 2025
23	RCT: RCT monthly return and payment (if due) for June 2026

* Where the return and payments are not received electronically, the return and payments filing date is 1-21 of the relevant month.

August 2026

Return and payment dates for the month of August
Date	Type of return
14	PAYE/PRSI/USC/LPT: P30 monthly return and payment for July 2026
14	DWT: Return and payment of DWT for July 2026
14	PSWT: F30 monthly return and payment for July 2026
*1-23	Corporation Tax: Prelim Tax for APs ending between 1-30 September 2026
*1-23	Corporation Tax: Returns for APs ending between 1-30 November 2025
23	RCT: RCT monthly return and payment (if due) for July 2026

* Where the return and payments are not received electronically, the return and payments filing date is 1-21 of the relevant month.

September 2026

Return and payment dates for the month of September
Date	Type of return
14	PAYE/PRSI/USC/LPT: P30 monthly return and payment for August 2026
14	DWT: Return and payment of DWT for August 2026
14	PSWT: F30 monthly return and payment for August 2026
19	VAT: Bi-Monthly VAT 3 return and payment (if due) for period July – August 2025together with the Return of Trading Details where the accounting period ends between the 1st July and the 31st August 2026
*1-23	Corporation Tax: Prelim Tax for APs ending between 1-31 October 2026
*1-23	Corporation Tax: Returns for APs ending between 1-31 December 2025
23	RCT: RCT monthly return and payment (if due) for August 2026

* Where the return and payments are not received electronically, the return and payments filing date is 1-21 of the relevant month.

October 2026

Return and payment dates for the month of October
Date	Type of return
14	PAYE/PRSI/USC/LPT: P30 monthly return and payment for September 2026 P30 quarterly return and payment for July – September 2026
14	DWT: Return and payment of DWT for September 2026
14	PSWT: F30 monthly return and payment for September 2026
20	VAT: MOSS VAT return and payment (if due) for the period July – September 2026
*1-23	Corporation Tax: Prelim Tax for APs ending between 1-30 November 2026
*1-23	Corporation Tax: Returns for APs ending between 1-31 January 2026
23	RCT: RCT monthly return and payment (if due) for September 2026
1-31	Corporation Tax: Returns of Third Party Information for APs ending between 1-31 January 2026
31	Income Tax: Preliminary Tax 2026
31	Income Tax: Pay balance of 2025 tax liability
31	Income Tax: Return of income for 2025
31	Capital Gains Tax: Return of Capital Gains for 2025
31	Capital Acquisitions Tax: Return and payment of CAT due in respect of gifts / inheritances where the valuation date arises between 1 September 2023 and 31 August 2025

* Where the return and payments are not received electronically, the return and payments filing date is 1-21 of the relevant month.

November 2026

Return and payment dates for the month of November
Date	Type of return
1	LPT: Liability (Ownership) date for 2026
14	PAYE/PRSI/USC/LPT: P30 monthly return and payment for October 2026
14	DWT: Return and payment of DWT for October 2026
14	PSWT: F30 monthly return and payment for October 2026
19	VAT: Bi-Monthly VAT 3 return and payment (if due) for period September – October 2026together with the Return of Trading Details where the accounting period ends between the 1st July and the 31st August
*1-23	Corporation Tax: Prelim Tax for APs ending between 1-31 December 2026
*1-23	Corporation Tax: Returns for APs ending between 1-29 February 2026
23	RCT: RCT monthly return and payment (if due) for October 2026
25	LPT: Deadline for confirming payment method to Revenue if spreading payments over 2026 (making phased payments). Note: This date is provisional.

* Where the return and payments are not received electronically, the return and payments filing date is 1-21 of the relevant month.

December 2026

Return and payment dates for the month of December
Date	Type of return
14	PAYE/PRSI/USC/LPT: P30 monthly return and payment for November 2026
14	DWT: Return and payment of DWT for November 2026
14	PSWT: F30 monthly return and payment for November 2026
15	Capital Gains Tax: Payment due on gains arising between 1 January 2026- 30 November 2026inclusive
*1-23	Corporation Tax: Prelim Tax for APs ending between 1-31 January 2026
*1-23	Corporation Tax: Returns for APs ending between 1-31 March 2026
23	RCT: RCT monthly return and payment (if due) for November 2026

* Where the return and payments are not received electronically, the return and payments filing date is 1-21 of the relevant month.

We can now get your late filing fees removed and the audit exemption restored for your company – call us on 01-2848911 and we can arrange it for you. We look after the whole process for you and the cost is often less than the late filing fees, and it removes the expense of a TWO time consuming and intrusive audits. This also removes the threat of prosecution of the company and/or its directors, and possible involuntary strike-off and dissolution of the company.

We can make a cost effective application to the less expensive District Court. The Court can make an Order extending the time in which the annual return of the company, in relation to a particular year, may be delivered to the Registrar of Companies. This removes the audit requirement for two years and the late filing penalties – the returns can be filed with unaudited accounts as if they were received by the Companies Office on time.

We look after the process from start to finish for you including:

• Arranging the timing of the hearing date ( Section 343 of the Companies Act 2014 )
• Serving of the notice (Form 93B.1) on the Registrar
• Arranging the company’s Affidavit (Form 93B.2) – this puts the Registrar on Notice in accordance with section 343(5), CA 2014
• Serving the Rollback order with the Companies Registration Office.

Normally there is no need for the company Directors to be involved apart from the signing of some simple documents at the start of the process.

It is important to speak to us before any late documents are filed for the company as only one order may be made in respect of a particular year and the filing of a late return with late filing fees can prevent the process from removing the audit obligation for the company.

The time period which may be extended by the Court is the 28 days after the ARD provided for in sections 343(2) and (3), CA 2014. When the company delivers the annual return to the CRO within the extended time period, that annual return will be deemed by the CRO to have been received on time and the consequences of late filing (late filing penalties / loss of audit exemption) will not apply to that annual return

It is important to start the process as soon as possible as late returns can cause credit problems for the company. Call us with any questions you may have on 01-2848911 or email us on support@companysetup.ie and we can start the process for you immediately.

The Companies Act 2014 came into effect on 1st June 2015. It replaced the Companies Acts 1963-2013 and it brought in many reforms to the operation of companies in Ireland making it easier to setup and maintain a company in Ireland.

The main implications of the Act can be summarised as follows:

 ONE DIRECTOR COMPANIES

Starting from the 1^st of June 2015, all new companies have a choice of two different types of companies to setup:

The simplified Private Limited Company (LTD) model:

1. Is allowed to have one director but must have a separate secretary
2. Can pass majority written resolutions
3. Does not need to hold an AGM in certain circumstances
4. Has a simple one-document constitution to replace the Memorandum and Articles of association (M&A)
5. Does not have any stated objects (can engage in any allowed activity)
6. Name of the company must end with the suffix “Limited” or “Teoranta

The Designated Activity Company (DAC) model:

1. Is a private company limited by shares OR by shares and guarantee
2. Must have at least two directors
3. Can pass majority written resolutions (where constitution allows)
4. Is required to hold an AGM where there are 2 or more members
5. Has a two-document constitution – a M&A which has stated objects
6. The name of the company must end with the suffix “Designated Activity Company” or “Cuideachta Ghníomhaíochta Ainmnithe” unless it is exempted

All existing limited companies have to decide which type of company they want to be going forward.

Requirements for Limited Companies to Convert to New Company Type The Companies Act 2014 introduces a “conversion” process required for all private companies limited by shares to convert into one of two new company types, the LTD or DAC model.

CONVERSION:

All existing private limited companies currently registered as a Private Company Limited by Shares can choose to convert to one of the two new company types once the Companies Act is commenced (1^st of June 2015).

AGE REQUIREMENT UNDER THE NEW ACT:

Every director and secretary must be aged 18 or over. Any appointment where the company officer is a minor is void. This applies to companies that were incorporated prior to the new Act’s introduction and any minor who is currently appointed as a director, ceases to be a director.

ANNUAL RETURNS AND FINANCIAL STATEMENTS

The Act reduces the compliance requirements on companies further removing the requirement to have an audit in most cases.

In relation to annual returns delivered to the Registrar on or after 1 June 2015 the following are the requirements in relation to the changeover period:

1. If the financial year ends before 1 June 2015 and the financial statements are signed by the director(s) before 1 June, they must be prepared and filed in accordance with the 1963-2013 Companies Acts;
2. Financial statements signed after 1 June 2015 should be prepared and filed in accordance with the Companies Act 2014.

FIXING OF LENGTH OF FINANCIAL PERIODS

Under section 288 of the new Act, the financial statements attached to a company’s first full annual return (ie with financial statements) must cover the period from incorporation and must not be for a period longer than 18 months. Each subsequent financial year begins on the date immediately after the last financial year end date and must be for a period of no more than 7 days shorter or longer than 12 months.

REVISION OF FINANCIAL STATEMENTS AND/OR DIRECTORS’ REPORT

A new provision in the 2014 Act is that if the company becomes aware of an error in the Financial Statements, they should correct the error and file the corrected documentation with the CRO not more than 28 days after the date of revision. Where copies of the original Financial Statements or original Directors’ Report have been laid before the company in a general meeting or delivered to the Registrar, all revisions should be made with reference to sections 366 to 379, CA 2014.

Where a revision is filed with the CRO, section 376(6), CA 2014, requires that the original Financial Statements or Directors’ Report shall continue to remain on the Register.

AUDIT EXEMPTION

Companies will only have to meet 2 of the 3 size criteria to qualify as a “small company” for the purposes of claiming an audit exemption. Guarantee and Group companies will be able to qualify for the audit exemption. There will be a new audit exemption available to Dormant companies.

EXTENSION OF TIME TO FILE ANNUAL RETURN WILL BE AVAILABLE FROM THE DISTRICT COURT

From the commencement date of the Companies Act 2014 (1 June 2015), applications for an extension of time to file an annual return can be made through the District Court as per section 343(5) of the Act. The costs of making an application to the District Court are far less than the High Court (which is currently the court prescribed).

Copyright. Company Setup 2020

Please note that this commentary does not purport to be a comprehensive review of Company Law. Feel free to contact us to discuss your requirements before any particular transaction is entered into.

All Companies in Ireland will have to display their company information, on their website and all emails. Companies are required to display the following:

 What Details Should Be Displayed On Your Website?

Pursuant to the ‘European Communities (Companies) (Amendment) Regulations 2007’ (“Regulations”), every limited liability company which has a website is required to display the following details:

• The full name of the company;
• The place of formation of the company;
• The registered number of the company;
• The registered office address of the company;
• In the case of a company exempt from the obligation to use the word “limited” or “teoranta” as part of its name, the fact that it is a limited company;
• In the case of a company which is being wound up, the fact that it is being wound up; and
• If the share capital of a company is mentioned on the website, the reference must be to the paid-up share capital.

Displaying The Details

The details should be displayed on the homepage of the website. Alternatively, they may be displayed on another webpage but a readily accessible link to the webpage must be prominently displayed on the homepage.

Electronic Communications

The Regulations, which came into effect on 1 April 2007, also extended the requirements for companies to disclose certain particulars on their letterheads and order forms to electronic communications. Letterheads and order forms are not defined within the Regulations but it is advisable that companies include the information indicated above for websites in all emails and faxes. It is recommended that the required details be included on the standard footer of company emails to ensure the information is issued automatically on all electronic communications from the company.

However, the names (and any former names) of directors of the company (together with their nationality if not Irish) are not required to be included on the electronic communications as Section 196 of the Companies Acts 1963 only applies to business letters of a company.

Consequences Of Non-Compliance

Failure to display the requisite information on business letters, electronic communications and websites will constitute a criminal offence subject to a maximum fine of €2,000 and companies should take immediate steps to ensure they are compliant with the Regulations by 1 April 2007.

Company Obligations 

It is clear that a company and its officers must comply with disclosure requirements in respect of the company’s website and electronic communications. Companies should take steps to ensure that the disclosure requirements are adhered to and their obligations are met.

 

Information:
The ‘Back to work Enterprise Allowance’ allows an individual to keep a portion of his or her social welfare payments for a period of two years. These payments are not taxable. An individual may make a claim under both the ‘Back to Work Enterprise Allowance’ scheme and the Start Your Own Business initiative. While the conditions for both schemes are similar, they are independent of each other. Individuals who wish to learn more about the ‘Back to Work Enterprise Allowance’ should contact their local Social Welfare office.

You can get immediate access to the allowance but you must meet the qualifying conditions.

Rules
Back to Work Enterprise Allowance
You can avail of the Back to Work Enterprise Allowance if you are:

Setting up as self-employed in a business that has been approved in advance in writing by a Job Facilitator or Partnership Company

And
Getting a Jobseeker’s Allowance for 12 months

Or
Unemployed for 2 years and getting Jobseeker’s Benefit. However, if you have an underlying entitlement to Jobseeker’s Allowance and are unemployed for one year you can qualify for the allowance. If you don’t have an underlying entitlement to Jobseeker’s Allowance, you must have a combination of qualifying social welfare payments for 2 years. Signing on for unemployment credits following your Jobseeker’s Benefit will not count towards the qualifying period.

Or
Getting One-Parent Family Payment, Disability Allowance, Blind Pension, Farm Assist, Incapacity Supplement, Pre-Retirement Allowance, Invalidity Pension, Carer’s Allowance, Widow’s/Widower’s or Surviving Civil Partner’s (Non-Contributory) Pension, Deserted Wife’s Benefit/Allowance or Prisoner’s Wife’s Allowance for at least 12 months

Or
Getting Illness Benefit for 3 or more years

Or
Getting Farm Assist for 12 months, providing that the self-employment is now in relation to the holding and not the continuation of an existing operation.

You may also be considered for the Back to Work Enterprise Allowance Allowance if you are:

A qualified adult of a person eligible to claim the Back to Work Enterprise Allowance Allowance. This involves the person who is eligible for the Back to Work Enterprise Allowance Allowance transferring his or her entitlements to their spouse/civil partner or cohabitant. (In other words, the spouse/civil partner or cohabitant becomes self-employed and the original claimant becomes the qualified adult on the Back to Work Enterprise Allowance Allowance). If the original claimant is entitled to credits, he or she can continue to claim them.
A person released from prison who satisfies the eligibility criteria for the scheme

Periods of time spent in FÁS Training, Community Employment, the Community Services Programme, Job Initiative, CERT, Teagasc, FIT and Back to Education Schemes are accepted as periods of unemployment.

Time spent on Supplementary Welfare Allowance or in Direct Provision can count towards the qualifying period for Back to Work Enterprise Allowance Allowance provided you are entitled to a qualifying payment before starting on the scheme.

If you have previously participated in the Back to Work Enterprise Allowance Allowance  scheme and exhausted your entitlement, you can participate a second time after a period of at least 5 years has elapsed.

What Do I Get?

• You will continue to receive your Social Welfare payments for 2 years;
  • 100% in year 1
  • 75% in year 2
• You will hold onto a medical card, if you have one prior to being approved for the scheme.
• You may continue to be eligible for rent supplement or mortgage interest supplements.
• Any monies received through the BTWEA scheme is treated as non taxable income.

You will also keep any secondary benefits (apart from Rent or Mortgage Interest Supplement) for as long as you are getting the Back to Work Enterprise Allowance provided your household income is less than €317.43 gross per week. Household income includes your spouse’s/civil partner’s or cohabitant’s income, but allows for PRSI and reasonable travel expenses. Income from the Back to Work Enterprise Allowance or the Short-term Enterprise Allowance is not taken into account for the purpose of the €317.43 weekly income limit but your income from work is taken into account. You should check with the Community Welfare Officer in your local Health Centre to see how your Rent Supplement or Mortgage Interest Supplement may be affected by your participation in the Back to Work Enterprise Allowance.

Where to apply

To apply for the Back to Work Enterprise Allowance, complete application form BTW 2. If you live in an area covered by a local Partnership Company or Integrated Local Development Company (ILDC), you should apply to the Enterprise Officer in your local Partnership or ILDC.

If you do not live in Partnership/ILDC area, you should apply to the Jobs Facilitator in your Social Welfare Local Office.

Almost 1,000 multinational companies have chosen Ireland as their strategic European base due to our pro-business environment and attractive taxation rates. Ireland is proving itself to be an excellent country to setup in, there are many reasons to consider Ireland as a country to incorporate and run your business, such as:

• One of the main reasons to incorporate in Ireland is it has the lowest corporation tax rates in Europe at 12.5%.
• Companies can avail of a 25% tax credit against research and development costs.
• Ireland has double taxation agreements with more than 60 countries, including every major trading partner.
• The Irish Government have a solid policy to support new business. Enterprise Ireland, the body to assist business development abroad has successfully promoted Irish business and investment for many years.
• Growing population … young, well educated, highly skilled, flexible & multilingual
• Ireland is English speaking, Global companies such as Google, eBay, & Facebook have all decided to host their European headquarters here.
• Ireland is part of the EU and therefore enjoys:
  1. duty-free access to the world’s most valuable market from Ireland
  2. companies in the eurozone are not exposed to currency fluctuations when trading in the eurozone
  3. European citizens can move freely within the EU to live and work
• Competitive labour, rent and business costs
• Ireland is the closest EU country to the USA with frequent flights that are shorter than from any other EU member state. Ireland is exceptionally well connected to the US on a personal, business and political level and we are the only country in the world that hosts US immigration services locally. This further speeds up travel time on arrival in US airports. In addition, all European business centres are a maximum of three hours away by frequent, low-cost flights and direct, scheduled services of less than eight hours offer access to Middle East business hubs including Dubai and Abu Dhabi.
• Ireland has an important enterprise culture, a very good young and well educated workforce and supportive environment and is a world leader in innovation.
• Excellent research facilities and capabilities
• New visa programs for non-nationals:
  Ireland has a consistent, decades-long policy of welcoming foreign-owned business from all over the world. Two new programs have just been announced:
• The Start-Up Entrepreneur Programme requires that applicants must have financial backing of no less than €75,000 and a business proposal which has a strong innovation component
• The Immigrant Investor Programme makes a provision for individuals with a successful business background to invest in and relocate to the State. A range of investment options are provided with different thresholds (from €400,000 – €2m) depending on the investment.
• The minimum share capital requirement to form a company limited by shares is just €1.00 .
• New Limited Companies available within 1 day.

Here are some world-wide companies who have seen the advantage of opening in Ireland:

• 9 of the world’s top 10 medical technology companies, such as Boston Scientific and Medtronic
• 8 of the top pharma/bio companies including Pfizer and Amgen
• 10 top internet companies, like Google and Facebook
• 3 of the top 5 games companies, such as EA and Activision

Requirments to setup an Irish Limited Company:

• At least two directors (one of which needs to be an EU resident director, if there are no EU resident directors a company bond needs to be put in place, the cost for this is €1,990)
• Directors need to be individuals and not companies
• Shareholders can be a company/companies or individuals
• Irish registered address: Every company registered in Ireland is required to have a registered office within Southern Ireland. Such address must be a full postal address within the State; a P.O. Box is not acceptable – we can provide this service (cost €345 + vat = €424.35 per year)
• Irish trading address: Every company registered in Ireland is required to have a trading address within Southern Ireland. Such address must be a full postal address within the State; a P.O. Box is not acceptable – we can provide this service (cost €345 + vat = €424.35 per year)

Sandra O’Neill, CompanySetup.ie – 00353-1-2848911

Tax Exemption for New Start-Up Companies

A Corporation tax relief is available to new companies started in Ireland under Section 486C of the Tax Consolidation Acts. The purpose of section 486C is to encourage new business activity in the traded sector of the Irish economy.

Section 486C provides relief from corporation tax in their first 3 years of operation for new companies:

• That are incorporated on or after 14 October 2008
• Which commence a qualifying trade in the year, and
• Whose corporation tax liabilities do not exceed specified levels

A qualifying trade does not include

A trade which was previously carried on by another person or formed part of another person’s trade

A trade of dealing in or developing land or exploration and extraction of natural resources, or

A trade consisting of “service company” activities as defined in section 441 TCA 1997. Service companies include close companies whose business consist of the carrying on of a profession of professional services, or of exercising an office or employment. Service companies also include businesses that provide services to professionals.

Full relief is available to a new company in any of its first 3 years of operation where its total corporation tax liability for a 12-month accounting period does not exceed €40,000.  A qualifying new company with a corporation tax liability up to this amount will have its corporation tax liability reduced to nil.  The maximum relief over 3 years is €120,000 (€100,000 for companies engaged in the transport sector). There is a sliding scale of marginal relief where the corporation tax liability for a 12-month accounting period exceeds €40,000 but is less than €60,000.  In that instance the corporation tax payable by the company for the accounting period is reduced to an amount determined by the following formula:

3 x (T-M) x (A+B)/T
where:

T is the total corporation tax payable by the company for the accounting period.

M is the lower relevant maximum amount (i.e. €40,000)

A is the Corporation tax payable by the company for the accounting period so far as is referable to income from the qualifying trade for the accounting period, and

B is the corporation tax payable by the company for the accounting period so far as is referable to chargeable gains on the disposal of qualifying assets of the qualifying trade.

For example: if a company’s tax liability is €41,000 (all attributable to income from a qualifying trade), it will get relief of €38,000 and will pay €3,000, calculated as follows:

3 x (€41,000 – €40,000) x €41,000/€41,000 = €3,000

There is no relief for a company with a corporation tax liability of €60,000 or greater in any 12 month accounting period. The €40,000 and €60,000 limits are proportionately reduced for accounting periods of less than 12 months.

Exclusions from Relief

The EU regulation also sets out the exceptions to what can be considered de minimis aid and, hence, areas to which section 486C relief cannot apply.  Exclusions from the scope of de minimis aid include undertakings active in

• The fishery and aquaculture sectors
• The primary production of agricultural products, or
• The coal sector

Most of these areas have separate EU regimes relating to the provision of aid.

Section 34 of the Finance Act 2011 modifies the existing relief so that the value of the relief will be linked to the amount of employers’ PRSI paid by a company in an accounting period, subject to a maximum of €5,000 per employee and an overall limit of €40,000. Credit is also given for any employers’ PRSI exempted under the Employer Job (PRSI) Incentive Scheme in respect of a company’s employees in determining the amount of corporation tax relief available to the company.

The Finance Act changes mean that where the total corporation tax payable by a qualifying start-up company for an accounting period does not exceed €40,000, the aggregate amount of corporation tax referable to income and gains of the qualifying trade in that period will be reduced to nil or, if greater, to that aggregate as reduced by the amount of qualifying Employers’ PRSI. Where the total corporation tax payable exceeds €40,000 but does not exceed €60,000, the aggregate amount of corporation tax referable to income and gains of the qualifying trade will be reduced to an amount as calculated in accordance with the existing marginal relief formula or, if greater, to that aggregate as reduced by the amount of qualifying Employers’ PRSI. For accounting periods of less than 12 months, the various limits are proportionately reduced. To ensure that the scheme is focussed appropriately on new business activities, the section contains a provision which excludes from relief a trade set up by a new company, the activities of which, if carried on a by an associated company of the new company, would form part of an existing trade carried on by that associated company.

Example

In the example below it is assumed that the corporation tax referable to income from the qualifying trade represents total corporation tax payable for the accounting period before relief under section 486C.

Company A accounting period ending 31/12/11

Corporation Tax referable to income from qualifying trade: €20,000

Employee Details	Employers’ PRSI paid in accounting period
Employee 1:	€2,000
Employee 2:	€3,000
Employee 3:	€6,000 [capped at €5,000]
Total Employers’ PRSI contribution:	€11,000

Qualifying Employers PRSI paid in accounting period: €10,000

Relief available under section 486C: €10,000

Copyright. Company Setup 2014

Please note that this commentary does not purport to be a comprehensive review of Corporation Tax legislation. Feel free to contact us to discuss your requirements before any particular transaction is entered into.