Ireland Accounting & Tax Glossary

Corporation Tax is the tax Irish-resident companies pay on their profits. Trading income is taxed at 12.5%, while non-trading (passive) income is taxed at 25%. Large multinationals within the OECD Pillar Two scope pay a minimum effective rate of 15%.

Form CT1 is the Corporation Tax return Irish companies file each year via ROS. It calculates the tax liability for the accounting period and is due within 9 months of the period end (specifically the 23rd of the ninth month for ROS filers). Preliminary tax of 90% (or 100% for small companies) of the final liability is due one month earlier.

Preliminary tax is Ireland's pay-on-account system. Companies pay 90% of expected current year liability (or 100% of prior year for 'small' companies with prior CT under €200,000) one month before year-end. Self-employed individuals pay 90% of current year or 100% of prior year by 31 October each year.

Value Added Tax in Ireland is charged on most goods and services. The standard rate is 23%, with reduced rates of 13.5% (hospitality, construction services), 9% (newspapers, certain e-publications), and 4.8% (livestock). Zero-rated supplies include most food, children's clothing and books.

The Companies Registration Office is Ireland's company registry, equivalent to the UK's Companies House. The CRO holds the public record for every Irish company including directors, shareholders, accounts, and annual returns. Filings are made via CORE at core.cro.ie.

Form B1 is the annual return Irish companies must file with the CRO each year. It confirms key company details (directors, shareholders, registered office) and is accompanied by financial statements (or abridged accounts for small companies). Late filing triggers loss of audit exemption for two years and €100 penalty plus €3 per day.

An Irish private limited company (Ltd, formerly LTD or Limited By Shares) is the most common business entity in Ireland. It is a separate legal entity from its owners, with limited liability, and is governed by the Companies Act 2014. Companies must have at least one EEA-resident director or hold a Section 137 bond.

ROS is the Irish Revenue's online portal for tax filing and payment. All businesses must use ROS to file CT1, VAT, PAYE, RCT and other returns. Individuals use myAccount for personal taxes. Registration requires a digital ROS Cert installed in your browser.

A sole trader in Ireland is a self-employed person trading in their own name (or under a registered business name). They have unlimited personal liability and are taxed on profits via Form 11 self-assessment, paying Income Tax, PRSI and USC on net earnings.

Pay As You Earn is the system Irish employers use to deduct income tax, PRSI and USC from employee wages and pay them to Revenue in real time. Since 2019, Ireland has operated under PAYE Modernisation, requiring employers to report payroll on or before each pay date.

Pay Related Social Insurance funds Ireland's Social Insurance Fund. Most employees pay Class A1 PRSI at 4.1% (rising to higher rates over time), and employers pay 11.05% on weekly pay above €441, or 8.9% below. Self-employed people typically pay Class S at 4.1%.

The Universal Social Charge is an Irish tax on gross income (with limited exemptions). Rates are banded: 0.5% on the first €12,012, 2% to €25,760, 3% to €70,044, and 8% above. Self-employed people earning over €100,000 pay an extra 3% surcharge.