Ireland Company Registration - 0% Corporation Tax extended until 2013!

June 30, 2010 - PRLog -- Section 486C of the Taxes Consolidation Act has been introduced to promote and encourage new business activity in the traded sector of the Irish economy.  Essentially the relief provides for an exemption from corporation tax currently at 12.5% (up to certain levels) for the first three years of operation.  


3 Year Exemption – Eligible Companies

This is a new relief which you can claim if:

•   You are a new company (incorporated in Ireland or another EEA State) since 14th October 2008
•   Which commences a qualifying trade in 2009 or 2010
•   Whose corporation tax liabilities do not exceed certain levels

You must commence a qualifying trade.  A qualifying trade does not include:

a)   A trade previously carried on by another person.  The trade must be a new business and not the transfer of an existing business or part of a business from a sole trader or previous company
b)   An excepted trade (subject to 25% tax).  Profits from non trading activities such as rental and investment income are taxed at 25% and do not qualify for the relief
c)   A trade carried on entirely outside Ireland and whose profits are subsequently taxed at 25%.  An Irish incorporated company must be managed and controlled in Ireland and have “substance” in Ireland in order to qualify for the 12.5% corporation tax rate and in turn the exemption as outlined in this article
d)   A trade dealing in or developing land or exploration and extraction of natural resources
e)   A trade of a “service company” that would be subject to a professional companies profits surcharge as per S441 TCA.  Effectively, the “service companies” that do not qualify for this tax relief include close companies (5 or fewer shareholders/ directors) whose businesses consist of the carrying on of a profession or the provision of professional services, or of exercising an office or employment.  These “service companies” also include businesses that provide services to professionals
f)   A trade in the fishery or aquaculture sectors
g)   A trade active in the primary production of agricultural products
h)   A trade active in the coal sector  

This incentive makes registering a company in Ireland even more attractive! Fore more details please see www.companyformations.ie

# # #

Company Bureau is Ireland's leading Company Formation, Company Secretarial and Corporate Service Provider. We can provide the incorporation of an Irish Corporate Entity in only 2-3 working days, as well as a full range of services including Virtual Office