fixmytax.com
Home
Help!
Business Tax
Personal Tax
Investments
FAQ
Resources
About Us
FAQ
FAQ - Appoint an Accountant
FAQ - Online Book-keeping
FAQ - Benefit in Kind
FAQ - Buying Property
FAQ - Capital Acquisitions; Inheritances and Gifts
FAQ - Capital Gains
FAQ - Companies
FAQ - Employees
FAQ - Emergency Tax
FAQ - Freedom of Information
FAQ - Imports and Exports (Customs and Excise)
FAQ - Mortgage Interest
FAQ - PAYE/PRSI
FAQ - P35
FAQ - Paying your tax
FAQ - Revenue Audit
FAQ - Redundancy
FAQ - Start a Business
FAQ - Starting Work
FAQ - SSIA maturity
FAQ - Taxing Business
FAQ - Travellers
FAQ - Value Added Tax
FAQ - Vehicle Registration Tax

Search Site:    
  

FAQ - Companies

FAQs - Corporation Tax

  1. How is a company taxed?
  2. What is the rate of the Corporation Tax?
  3. How do I decide whether to trade as a sole trader or as a Company?

1 How is a Company Taxed?

Companies pay Corporation Tax on the company’s profits which include both income and chargeable gains taken together.

A company’s income for tax purposes is calculated in accordance with Income Tax rules. All trading income earned in the accounting period less expenditures, wholly and exclusively incurred for the purpose of the business and capital allowances (tax depreciation) will give a taxable profit.

Chargeable gains are calculated in accordance with Capital Gains Tax rules. Disposal Value received less selling costs less the cost of acquisition will give the taxable gain or allowable loss.

Costs of acquisition include legal fees, agent fees and stamp duty.

Back to the top

2 What is the rate of Corporation Tax?

There are three rates of Corporation Tax:

Rates effective from 1 January 2002

- 12.5% for trading income

- 25% for non-trading income

- 12.5% for small and medium-sized enterprises where the trading income does not exceed €253,948 (provision for marginal relief where income does not exceed €317,435).

The rate for Manufacturing, IFSC and Shannon companies remains at 10%.

Back to the top

3 How do I decide whether to trade as a Sole Trader or as a Company?

Your own individual circumstances will dictate whether you should operate as a limited company or as a sole trader. In addition to the taxation issues you need to consider there are various other practical and legal matters which should be taken into account when setting up a company and on which you should seek professional advice.

Back to the top




Fixmytax Shop
Fixmytax News


Newsletter Signup:


Cooling the property market?
Should the governement seek to stop property rising by raising stamp duty?
yes
No
don't know



Testimonials

"I run my own business and after years of struggling with a demanding home life and a hectic work schedule I reached a situation whereby I was functioning poorly with both. I’d missed a couple of VAT payments and had intended to catch up at the end of the year. I missed my own deadlines and tried again to catch-up in the following year. Business became a stressful job of ‘fire-fighting’ each day’s demands, eventually pushing the issue of outstanding taxes out of my mind as much as possible, in order to concentrate on work.

That said, you always know in the back of your mind that these things don’t just go away and that it was just a matter of time before ‘they’ catch up with you. 

After a few years of letting my compliance payments slide altogether, the Revenue made contact with me and gave me an estimate of all PAYE, VAT and tax owed over the years – which ran to over 6 figures- and they wanted the money immediately. I knew I was in big trouble and looked in the Golden pages for an accountant who could help me. The name www.fixmytax.com jumped out of the page and I made contact. I was immediately reassured that they could help me. I was asked for “every bit of paper” concerning the office and all old Revenue correspondence.

The first thing fixmytax.com was to do was make contact with the Revenue on my behalf and assure them that they were handling the situation and that the liabilities were being established, even though it would take time. That took the immediate ‘knock-at-the-door’ shock and worry out of the situation. The coming weeks were spent only dealing with fixmytax, (not the Revenue) answering the odd question by phone and filling in more information for the accountant. Even though this was routine information, I was quite reassured by the fact that they were working on the whole Revenue mess and actually sorting through it for me. This took the panic and stress out of the situation and enabled me to concentrate on work. After a few weeks, accounts and figures had been prepared, which I went over with the accountant.

The accountant had dealt with the Revenue directly on my behalf and he saved over 60% off the original tax bill.

Throughout the process, the fixmytax accountant was hugely supportive to me, dealt directly with the Revenue, reduced the original tax bill considerably and most importantly, had taken the fear out of the situation and given me peace of mind knowing that good progress was being made with the Revenue, rather than hiding from it all.

The cost? Approximately 7% of the money SAVED on the original tax bill!

My Revenue mess caused me huge amounts of anxiety all the time I did nothing to resolve it. In dealing with fixmytax, they took control of the situation and proceeded to do what had to be done. I would not hesitate to recommend them to anyone worried about any aspect of taxation and financial planning for a business.

I now have a good relationship with the Revenue, fixmytax looks after not only the basics of compliance, but also the financial planning and regularly reviews the performance of the business. My business is now stronger and more focussed that ever before simply because of the level of ongoing collaboration and support that I have with fixmytax. They are the proverbial “good accountant” that every business needs.

My most valuable lesson in dealing with fixmytax is that it is far more productive and far less stressful to get a good supportive accountant to do what they do best, leaving me free to do business. Thanks, Patrick!

Satisfied Client, name and address with firm. 

more testimonials »