Ireland opts for 0% Corporation tax for three years

 

04/02/09 Irish Times  - The Irish Finance Act 2009 has now come into force. True to its long history of creating innovative tax incentives (often frowned upon by other EU member states) Ireland has introduced a 0% Corporation Tax break for new companies (formed after 14 October 2008) that commence a qualifying trade in Ireland in 2009.

The 0% corporation tax will apply up to a deemed tax charge of €40,000 per year.  This equates with taxable trading profits of €320,000 each year (Irish Corporation Tax is already low at 12.5%) over the three years of the scheme. This legislation will be formally activated by way of a Ministerial Order in the coming weeks.  This concession only applies to companies which commence trading in 2009 and will be very attractive to UK businesses with an existing customer base in Ireland or wishing to establish one. Ireland has a comprehensive schedule of Double Taxation Treaties to facilitate planning opportunities.

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