We provide the following services for each type of business structure:
Sole Trader Business including Farming
• Preparing of Income Tax and Capital Allowance Computations for submission to the Inspector of Taxes.
• Assistance with PAYE and various returns and forms as necessary
• Assistance with completion of various revenue and government forms e.g.
VAT, R.C.T. Form 11’s form 46G etc.
• Completion of Form 12’s for submission to the Inspector of Taxes and corresponding with the revenue in relation to various letters and queries e.g. tax credits, refunds, Capital Gains Tax, Capital Acquisition Tax etc.
• Completion of Med 1 forms for submission to the tax office.
• Preparation of Corporation Tax returns, completion and submission to the tax office of various tax returns e.g. CT1, 46G forms etc.
• Preparing or assisting with the preparation of various revenue forms and returns including PAYE and VAT.
Key Business Taxes Explained:
We hope you find the following information useful, please contact us for any further information or assistance you may require.
Companies pay Corporation Tax. This tax is charged on the company’s profits which include both income and chargeable gains. A company’s income for tax purposes is calculated in accordance with Income Tax rules. Chargeable gains are calculated in accordance with Capital Gains Tax rules.
There are two rates of Corporation Tax:
• 12.5% for trading income unless the income is from an excepted trade(certain land dealing activities, income from working minerals and petroleum activities) in which case the rate is 25%
• 25% for non-trading income (e.g. investment income, rental income)
Tax holiday for start-up companies extended
The minister has announced that the three year corporation tax relief for start up companies will be extended to trades set up and commenced in 2010 as well as 2009. This relief was introduced in Budget 2009 and legislated for in the 2009 Finance Act. However the legislation has not yet become effective and is subject to the issue of a ministerial order pending completion of a review by the EU in the context of state aid rules. As drafted, the legislation only applies to trades set up and commenced in 2009.
The extension of the relief to 2010 means that new start up companies which commence to trade in 2010 will be exempted from both corporation tax on trading income and on capital gains on the disposal of trade-related assets, in each of the first three years for which the trade is carried on, to the extent that their tax liability for that year does not exceed €40,000. Marginal relief is available for companies with annual liabilities of between €40,000 and €60,000.
The relief does not extend to all trades, trades which are subject to corporation tax at a rate of 25% e.g. land dealing and exploration related trades and companies carrying on certain professional services trades are excluded.
Please note that if a limited company is taking over a pre-existing trade it will not qualify for the tax holiday announced in the budget.
Capital Gains Tax
Capital Gains Tax (CGT) is chargeable on gains arising on the disposal of assets, other than that part of a gain which arose in the period prior to 6 April 1974. Any form of property (other than Irish currency) including an interest in property (as, for example, a lease) is an asset for CGT purposes.
The standard rate for CGT is 25% in respect of disposals made from midnight on 7th April 2009. Previous rates were 22% on disposals from 14 October 2008 and 20% in respect of disposals made prior to that date.
Capital Acquisiton Tax
Capital Acquisitions Tax comprises Gift Tax, Inheritance Tax and Discretionary Trust Tax. Gift tax is charged on taxable gifts taken (other than on a death) on or after 28th February, 1974 and Inheritance Tax is charged on taxable inheritances taken (on a death) on or after 1st April, 1975.
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E.W. Levingstone & Co. – Accountancy – Taxation Advice – Taxation Consultants – Wexford, Waterford, South East