Tax Relief for new start up companies
Tax Relief for new start up companies
If you have started a new company, you may be able to apply for tax relief for start-up companies.
This tax relief is a reduction of your Corporation Tax (CT) for the first three years you trade.
The relief can be applied to the profits from your new trade and on chargeable gains made on assets used in that trade.
You may be entitled to relief if your CT due is €40,000 or less in a tax year. If your CT due is between €40,000 and €60,000, you may be entitled to partial relief.
Tax relief for start-up companies also depends on the amount of employer’s Pay Related Social Insurance (PRSI) you pay. This must be a maximum of €5,000 per employee and €40,000 overall.
There are a number of trades excluded from this relief:
- a trade previously carried on by another person which the company has succeeded
- activities previously carried on as another person’s trade or profession
- land development
- exploration and extraction of petroleum or minerals
- service company activities such as professional services like architects, consultants etc
- activities, including fishery, aquaculture, production of agricultural products and the coal sector
- activities carried on by an associated company of the new company which forms part of the trade carried on by the associated company.
Subject to qualifying conditions
Any queries on the above give me a call on 091 763817 or email me at oliver@taxreturnhelp.ie
