What is Preliminary Tax (Ireland)?
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.
Current Rate (Companies: month before year-end. Individuals: 31 October.)
90% of current year OR 100% of prior year (small companies / individuals)
Example
A small company with prior CT of €30,000 and year-end 31 December 2024 pays €30,000 preliminary tax by 23 November 2024, then balances on 23 September 2025 with the CT1.
Related terms
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.
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