Corporation Tax Services Ireland | Book Smart Accountancy

Book Smart Accountancy & Tax Advisors Ltd

Corporation Tax

Ireland's 12.5% corporation tax rate on trading income is one of the most competitive in Europe, making it an attractive place to do business. However, calculating, planning, and filing your corporation tax correctly requires expert knowledge of Irish tax law and Revenue requirements.

At Book Smart Accountancy, we manage the entire corporation tax process for our clients, from preparing your tax computation and filing your return to advising on reliefs, credits, and planning opportunities that can legitimately reduce your liability.

Every Irish limited company is required to file a corporation tax return each year, regardless of whether it has made a profit. The return must be submitted within nine months of the company's financial year-end, and any tax due must be paid on time to avoid interest and surcharges.

We work closely with you throughout the year, not just at year-end, to ensure that your tax position is managed proactively. This includes advising on the timing of expenditure, the use of losses, research and development credits, capital allowances, and any other reliefs that may be available to your business.

Whether you are a small owner-managed company or a larger corporate entity, we tailor our approach to your specific circumstances and ensure that your corporation tax obligations are met efficiently and on time.

Book Smart Accountancy & Tax Advisors Ltd

Things to Know or Watch Out For with Corporation Tax

Preliminary Tax Must Be Paid in Advance - Companies are required to pay preliminary corporation tax before their financial year-end. Small companies pay 100% of the prior year liability, while larger companies must pay based on current year estimates. Missing this payment results in interest charges.
Nine-Month Filing Deadline - Corporation tax returns must be filed within nine months of the accounting period end date. Late filing attracts surcharges of up to 10% of the tax due.
The 12.5% Rate Applies Only to Trading Income - Non-trading income such as rental income, investment income, and foreign dividends is typically taxed at 25%. Correctly categorising your income is essential.
Losses Can Be Carried Back or Forward - Trading losses can often be offset against profits from the same or prior year, or carried forward against future profits. Knowing how to use losses effectively can significantly reduce your overall tax burden.

R&D Tax Credits Can Be Valuable - If your business undertakes qualifying research and development activities, you may be entitled to a 25% tax credit on eligible expenditure. The rules around what qualifies can be complex, but the benefit can be substantial.
Close Company Rules May Apply - If your company is controlled by five or fewer individuals, close company rules may apply, including a surcharge on undistributed investment and professional income. We can advise on whether these rules affect your business.
Directors Loans Must Be Managed Carefully - Loans to directors or their families can trigger additional tax charges under the close company rules if not repaid within a specific timeframe.
Capital Allowances Must Be Claimed Correctly - Qualifying capital expenditure on plant, machinery, and industrial buildings can be written off against taxable profits through capital allowances. Incorrect treatment can result in missed reliefs or errors in your return.

Book Smart Accountancy & Tax Advisors Ltd

Frequently Asked Questions

Your return must be filed within nine months of your accounting period end date. For example, if your year-end is 31 December, your return is due by 23 September of the following year for electronic filing through ROS. We manage this deadline for all our clients and ensure returns are submitted on time.

No. If your company made a trading loss, no corporation tax is due on trading income. However, you are still required to file a return. Losses may also be available to offset against other income or future profits, which we will advise you on.

Preliminary corporation tax is an advance payment of your expected tax liability for the current year. It must generally be paid within the first six months of your accounting year for large companies, or by the 23rd of the month before year-end for smaller companies. Underpayment of preliminary tax results in interest charges, so getting the calculation right is important.

Yes, through legitimate planning. This includes claiming all available capital allowances, making pension contributions for directors and employees, using trading losses efficiently, taking advantage of the R&D tax credit if applicable, and timing income and expenditure carefully. We review your position regularly and advise on opportunities to reduce your liability within the rules.

Interest accrues daily on unpaid corporation tax from the due date. In addition, late filing of your return can attract a surcharge of 5% of the tax due if filed within two months of the deadline, rising to 10% if filed later. These charges can add up quickly, which is why we manage all deadlines proactively for our clients.

Yes. Every Irish resident company must register for corporation tax with Revenue, usually at the time of incorporation or when it begins trading. Non-resident companies with a permanent establishment in Ireland also have registration and filing obligations. We handle the registration process as part of our company formation and start-up services.

The 12.5% rate applies to active trading income, which is income generated from the company's core business activities. The 25% rate applies to passive income such as rental income, investment returns, and certain foreign income. If your company earns both types of income, the profits must be split and taxed at the appropriate rate. We ensure this is done correctly in your return.

Yes. If Revenue opens an inquiry or audit into your corporation tax affairs, we will represent you throughout the process. We prepare all required documentation, liaise with Revenue on your behalf, and work to achieve the best possible outcome. Early engagement with us when an audit is notified usually leads to a smoother and faster resolution.