Interactive Corporation Tax Guide
Explore different aspects of Irish corporation tax with detailed breakdowns.
Irish Corporation Tax Rates (2025)
Trading Income
12.5%Active business trading profits
Passive Income
25%Investment income, rental income (excluding property trading)
Capital Gains
33%Gains on disposal of assets
Close Company Surcharge
20%Undistributed investment income
Corporation Tax Calculation Example
See how corporation tax is calculated for a typical Irish company.
Example Company Calculation
Company Profile
- • Software development company
- • Annual trading profits: €500,000
- • Property rental income: €50,000
- • Capital gain on asset sale: €100,000
Effective Rate: €108,000 ÷ €650,000 = 16.6% overall (The low 12.5% rate on trading income keeps the overall rate competitive)
Corporation Tax Filing Requirements
Key obligations and deadlines for Irish companies.
Annual Obligations
Form CT1 Return
- • Due 9 months after year end
- • Must be filed even if no tax due
- • Include audited accounts
- • Submit via ROS online
Annual Return of Accounting Period
- • Due 9 months after year end
- • Filed alongside CT1
- • Details company activities
- • Mandatory for all companies
CRO Annual Return
- • Due by annual return date
- • Filed with Companies Registration Office
- • Include audited financial statements
- • Penalties for late filing
Payment Requirements
Small Companies (Turnover ≤€3m)
- • Pay in full 9 months after year end
- • No preliminary tax required
- • Late payment interest: 0.0274% per day
- • Automatic entitlement
Large Companies (Turnover >€3m)
- • Pay in full 6 months after year end
- • Preliminary tax due in month 6
- • Must pay 90% of current year liability
- • Higher penalties for late payment
Payment Methods
- • ROS online payment
- • Bank transfer to Revenue
- • Direct debit arrangement
- • Standing order for installments
Corporation Tax Planning Strategies
Legal strategies to optimize your company's tax position.
Key Planning Areas
Timing of Income & Expenses
Accelerate deductible expenses and defer taxable income where possible to optimize cash flow.
Capital Allowances Optimization
Maximize capital allowances on plant, machinery, and equipment purchases to reduce taxable profits.
R&D Tax Credits
Claim 25% R&D tax credits for qualifying research and development expenditure.
Pension Contributions
Corporate pension contributions are fully deductible and provide valuable employee benefits.
Loss Relief Planning
Utilize trading losses effectively through carry forward or group relief arrangements.
Common Corporation Tax Compliance Issues
Avoid these common mistakes that can lead to penalties and interest.
Filing Errors
Payment Mistakes
Best Practice Recommendations
- ✓Set up calendar reminders for all filing deadlines
- ✓Use professional accounting software for accuracy
- ✓Engage qualified accountants for complex matters
- ✓Keep detailed records and supporting documentation
Simplify Your Corporation Tax Compliance
Stop worrying about corporation tax deadlines and calculations. PayVat automates compliance and maximizes your tax efficiency.
Join Irish companies using PayVat for corporation tax