|Standard Rate on Trading Income||12.5% from 1 January 2003|
Finance Bill 2014 will amend Ireland’s company tax residence rules to provide that all companies that are incorporated in Ireland will be tax resident here, unless regarded as resident in a territory other than the State for the purposes of a tax treaty. The change will come into effect for new companies from 1 January 2015 while a transition period will apply until the end of 2020 for existing companies. This change will bring Ireland’s rules into line with the rest of the OECD.
The current regime for intangible assets provides capital allowances for expenditure incurred on the provision of certain intangible assets for use in an Irish trade. This measure is being enhanced:
Further details will follow in the Finance Bill.
|Accelerated Capital Allowances for Energy-efficient Equipment
This is a measure to incentivise companies to invest in energy-efficient equipment. It allows them to deduct 100% of capital expenditure incurred on eligible equipment (that meets specified energy-efficiency criteria) from trading profits in the year of purchase rather than over the usual 8 year period for plant and machinery. This measure was due to expire at the end of 2014 and
following a review by the Department of Communications, Energy and Natural Resources is being extended to the end of 2017.
|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
|Start-Up Companies – 3 Year Tax Exemption
The scheme which provides relief from corporation tax on the trading income and certain gains of new start-up companies in the This scheme provides relief from corporation tax on trading income (and certain capital gains) for new start-up companies in the first 3 years of trading.
This scheme is being enhanced to allow any unused relief arising in the first 3 years of trading due to insufficiency of profits to be carried forward for use in subsequent years. This is subject to the maximum amount of relief in any one year not exceeding the eligible amount of Employers’ PRSI in that year.
|Research and Development (R & D) Tax Credit
The R&D Tax Credit regime provides for a 25% tax credit for incremental expenditure on certain research and development (R&D) activities over such expenditure in a base year (2003). Finance Act 2012 provided that the first €100,000 of qualifying R&D expenditure would benefit from the tax credit without reference to the 2003 threshold. The amount of expenditure so allowed on a volume basis was increased to €200,000 in Finance Act 2013 and is now being increased again to €300,000.
The limit on the amount of qualifying research and development expenditure that can be outsourced to another company is also being increased from 10% to 15%.
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