Setting up a Company in Ireland - What you need to know about Tax

Starting a new business in Ireland can be an exciting endeavor. But, like with any new venture, it’s important to have a thorough knowledge of the relevant tax requirements before getting started. 

Companies in Ireland are subject to a number of Taxes, including Corporation Tax, Value Added Tax (VAT), Income Tax and Capital Gains Taxes.

Corporation Tax

Corporation Tax is levied on companies in Ireland at a rate of 12.5%, one of the lowest rates in the EU. Companies must register with the Revenue Commissioners and submit an annual tax return. Companies must also keep accurate records of their income and expenditure in order to calculate the amount of tax that they owe.

Value Added Tax

VAT is a consumption tax on goods and services, which companies must charge to their customers unless they are exempt from doing so. VAT rates vary depending on what type of product or service is being sold, but standard rate is 23%.

Income Tax

Income Tax is levied on all income derived by individuals from employment or trading activities, as well as investment income such as dividends and interest. Income tax rates vary depending on an individual’s total income, with the highest rate of tax being 40%.

Capital Gains Tax

Is a tax on gains made when disposing of assets such as shares or property. The standard rate of Capital Gains Tax is 33%, although certain exemptions and allowances may apply.

When starting a business in Ireland, it’s important to make sure you are aware of all these taxes and that you comply with the regulations. To do this, you must register your company with Revenue, as well as other relevant bodies such as the Companies Registration Office (CRO). This will ensure that you have the correct records and documentation in place.

Overall, starting a business in Ireland can be a rewarding experience if you have an understanding of the relevant taxes and regulations. With the right preparation and knowledge, you’ll be well on your way to setting up a successful business.