Corporate Tax

South

Corporation Tax is charged on all profits (income and gains), wherever arising, of companies resident in the State, with some exceptions, and non-resident companies who trade in the State through a branch or agency.

  • How is a Company Taxed?  Companies pay Corporation Tax. This tax is charged on the company’s profits which include both income and chargeable gains. A company’s income for tax purposes is calculated in accordance with Income Tax rules. Chargeable gains are calculated in accordance with Capital Gains Tax rules.  For current rates please visit Revenue – Corporation Tax

Cross-border issues

A company resident in the state (Ireland) is liable to Corporation Tax on its worldwide profits, not just its Irish source profits. Whether or not these profits are brought into Ireland is irrelevant for this purpose.

For further information please visit Revenue – Corporation Tax Basis of Charge

Tax is a complex area and it is important to seek expertise advice.  InterTradeIreland provides a list of professional service providers that have expertise in a range of cross border issues.  Please visit the InterTradeIreland Cross Border Advice Zone: List of providers

North

Corporation Tax is a tax on the taxable profits of limited companies and some organisations including clubs, societies, associations, co-operatives, charities and other unincorporated bodies.  Source: NI Business Info: Corporation Tax

  • Taxable profits for Corporation Tax include:  profits from taxable income such as trading profits and investment profits – except dividend income which is taxed differently.  Capital gains – known as ‘chargeable gains’ for Corporation Tax purposes

Cross-border issues

If your company or organisation is based in Northern Ireland (or another part of the UK), you’ll have to pay Corporation Tax on all your taxable profits – wherever in the world those profits come from.

If your company isn’t based in the UK but operates in Northern Ireland (or another part of the UK)- for example, through an office or branch (known to HM Revenue & Customs (HMRC) as a ‘permanent establishment’) – you’ll only have to pay Corporation Tax on any taxable profits arising from your UK activities.

For further information please visit NI Business Info – Introduction to Corporation Tax

Tax is a complex area and it is important to seek expertise advice.  InterTradeIreland provides a list of professional service providers that have expertise in a range of cross border issues.  Please visit the InterTradeIreland Cross Border Advice Zone: List of providers

See also

Page last checked: January 2016

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