Companies in Ireland are required to maintain accounting records and to prepare and file an annual return and accounts each year with the Companies Registration Office.
The first annual return is due 6 months after incorporation and every 12 months thereafter. No accounts are required with the first annual return.
There are different accounts requirements for different companies based on the type and size.
Accounts must be filed within 9 months and 56 days (if filed electronically) of the end of their financial year.
Companies resident in Ireland must submit corporation tax returns and pay corporation tax on their worldwide profits including both income and capital gains.
There are two rates of corporation tax for income; 12.5% for trading income and 25% for non-trading income (rental and investment income for example). The capital gains tax rate is 33%.
Value Added Tax (VAT)
VAT registration is obligatory when the VAT turnover thresholds are exceeded or are likely to be exceeded in any 12-month period. If you are below the threshold, you can elect to register for VAT.
The thresholds range from €37,500 to €75,000 depending on whether goods or services are supplied.
The standard VAT rate is 23%. There are reduced rates of 13.5%, 9%, 4.8% and 5.4% on specific goods and services.
Personal taxIf you are resident in Ireland, you must pay tax on your worldwide income.
You are resident in Ireland for tax purposes if you are in Ireland for a total of 183 days or more in a tax year or 280 days or more in a tax year plus the previous tax year taken together, with a minimum of 30 days in each tax year.
There are two income tax rates; a standard rate of 20% and a higher rate of 40%. Taxable band thresholds depend on an individual’s personal circumstances such as whether they are single or married and whether they have children or not. There are also various allowances and reliefs which may be available.
Capital Acquisitions Tax (CAT)If, after your death, the beneficiaries of your estate receive sums in excess of the thresholds for CAT purposes, tax will be payable. There are various tax-free thresholds which apply for CAT purposes depending on the relationship between the deceased and the beneficiary. There are also various exemptions that apply.
The rate of CAT is 33%.
Capital gains tax
This is imposed at a rate of 33% and is the same rate for both companies and individuals.