Startups.ie

There has never been a better time to set up a company in Ireland. David Brannigan explains the new tax exemption for startups

The Irish Government has introduced a scheme whereby new start-up companies are exempt from paying corporation tax for the first three years of their operation.

In order to avail of the scheme the companies

1) must be incorporated on or after 14 October 2008,
2) commence qualifying trade in 2009 (now extended to 2010),
3) have corporation tax liabilities that do not exceed specified levels.

In order to qualify, the trade of the company must not have been previously carried on by another person or formed part of another person’s trade.

The relief also does not apply to “service companies”. These are companies which are controlled by five or fewer people who carry on a profession or supply professional services.

The maximum relief allowable is for a corporation tax liability of €40,000 per annum. There is also marginal relief where the corporation tax is between €40,000 and €60,000.

If you need any further advice and information about any of the above, do get in touch with us at info@irishaccounts.ie