Ireland Accounting Questions Answered

What is preliminary tax in Ireland?

Preliminary tax is an advance payment of your income tax or corporation tax liability, due before your tax year ends. You must pay at least 90% of your final liability (or 100% of the prior year) to avoid interest charges.

What are the corporation tax rates in Ireland?

Ireland has a 12.5% corporation tax rate on trading income and a 25% rate on passive income (rents, investments, foreign trades). Large multinational groups with global revenue over €750 million pay a minimum 15% rate under Pillar Two rules.

How do I pay myself as a director of an Irish limited company?

As an Irish company director you can pay yourself through PAYE salary, dividends, or employer pension contributions. The optimal mix depends on your personal tax rate, company profitability, and how much you want to retain for growth.

How does USC work in Ireland?

USC (Universal Social Charge) is a tax on gross income in Ireland, charged at 0.5% on the first €12,012, 2% up to €25,760, 3% up to €70,044, and 8% above that. Self-employed earners pay an additional 3% surcharge on income over €100,000.

What is Form CT1 in Ireland?

Form CT1 is Ireland's corporation tax return, filed through Revenue Online Service. It is due nine months and 23 days after your accounting year-end for online filers. The balance of tax is paid at the same time.

When do I need to register for VAT in Ireland?

You must register for VAT in Ireland when your turnover exceeds €40,000 per year for services or €80,000 per year for goods. You can also register voluntarily below these thresholds.

How do I file the annual return B1 with the CRO in Ireland?

Every Irish limited company must file a B1 annual return with the Companies Registration Office within 28 days of its Annual Return Date. The online filing fee is €20; late filing triggers fines of €1,200 plus daily penalties and loss of audit exemption.

What expenses can I claim as a sole trader in Ireland?

Sole traders in Ireland can deduct expenses that are wholly and exclusively incurred for the purposes of the trade. This includes motor expenses (business proportion), home office costs at €10 per day flat rate, professional fees, insurance, marketing, and equipment.

How do I register for PAYE as an employer in Ireland?

To register as a PAYE employer in Ireland, you register with Revenue through ROS using Form TR1 (individuals) or TR2 (companies), and then operate PAYE Modernisation by reporting payroll in real time via Revenue Payroll Notifications.

What is Entrepreneurs' Relief in Ireland?

Entrepreneurs' Relief in Ireland reduces the Capital Gains Tax rate to 10% on qualifying disposals of business assets, up to a lifetime limit of €1 million in gains. Standard CGT is 33%, so the relief saves up to €230,000.