OUR FIRM ADVISES ON  ALL ISSUES RELATING TO CORPORATION TAX.

GENERAL

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.

COMPANY DIRECTORS

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.