OUR FIRM ADVISES ON ALL ISSUES RELATING TO CORPORATION TAX.
All companies resident in the State and all non-resident companies which carry on a trade through a branch or agency are liable to corporation tax.
CORPORATION TAX RATES
Generally the rate is 12.5%. on trading profits. Profits from manufacturing companies and certain IFSC companies are 10%.
CORPORATION TAX SELF-ASSESSMENT & RETURNS
This applies to all companies. The annual tax eturns called the CT1 form must be submitted on a date 9 months after the year end but no later than the 21st day of that month. e.g. Y/E 31 DEC 2009 return must be submitted on or before 21 OCTOBER 2010.
Since 1 JUNE 2011 it is now generally mandatory to submit the CT1 directly through ROS the revenue-on-line system.
CORPORATION TAX LATE RETURNS
A 5% surcharge is imposed where returns are submitted late but within 2 months of the specified return date. Thereafter a 10% surcharge applies.
Also offset of trading losses against other income is restricted.
All proprietary directors( ie control more than 15% of ordinary share capital) must submit separate income tax returns under the self-assessment system. This is despite the fact that their company earnings will have been subject to PAYE. Where Income Tax returns are filed late they will incur the usual 5% surcharge. A 10% surcharge will be incurred where submitted after 31 December in the year following the tax year . It is also important to note that the surcharges are computed on the income tax liabilities before deduction of directors paye deducted at source.
CREDIT FOR DIRECTORS PAYE
A credit for paye tax deducted from proprietary directors earnings will not be given unless there is documentary evidence that the tax has been remitted to the Collector-General. Any tax remitted by the company will in the first instance be treated as deducted from other employees and tax allocated to an individual director will be treated as deducted from each director in the same proportion as emoluments paid to each director bears to the aggregate amount paid to all such directors subject to the proviso that the credit cannot exceed the PAYE actually deducted from a director’s emoluments.