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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



The payment date for preliminary tax, which must be at least 90% of the final liability, is one month before the end of the accounting period.

Preliminary tax is based on the current year's liability. However, small companies can base the preliminary tax payment on the previous year's liability. A small company is a company with a corporation tax liability of less than Euro150,000 in the preceeding period. This small company threshold has been increased to Eur200,000 with effect from 5 December 2007.

New or start up companies with a corporation tax liability of less than €150,000 (€200,000 from 5/12/07) in their first accounting period will not be required to pay preliminary corporation tax. The liability is paid when the return is filed.

Accounting Periods Ending on or after

% of current liability

% of previous year's liability (Small Company)

1 January 2007 and after

90

100

The final balance of tax (10%) is payable nine months after the end of the accounting period.


R&D Tax Credit

A 20% tax credit for qualifying research and development expenditure was being introduced in Finance Act 2004 for companies engaged in in-house qualifying research and development undertaken within the European Economic Area. The method of calculating the relief is an incremental one using a base year to determine the level of incremental expenditure. The base year is fixed at 2003 up to 2009.

Partial relief is also available to companies for the cost of sub-contracting research and development work to unconnected parties.


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