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TAXES

 

Disclaimer: Always contact a professional before proceeding with a transaction

 

 

Income Tax (IT)

Income tax is chargeable on all income arising in the State to individuals & partnerships. The most common form of income tax is PAYE or “Pay As You Earn” deducted by employers from employee’s pay. Self employed individuals or partnerships must prepare yearly accounts and income tax returns to be filed online with Revenue, to determine their annual income tax liability

 

Corporation Tax (CT)

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, and is charged at 12.5% for trading income unless the income is from an excepted trade in which case the rate is 25%. Corporation Tax is charged at 25% for non-trading income (e.g. investment income, rental income). There are a number of “close company rules” to be considered, and close company surcharge applies to professional services. A company’s chargeable gain on disposal of its assets  are calculated in accordance with Capital Gains Tax rules.

 

Value Added Tax (VAT)

Valued Added Tax (VAT) is an indirect government tax, charged on the supply of goods and services. Output VAT arises on the sale of goods and services and is collected by the business, on behalf of the Government. Input VAT arises on the purchase of goods and services and may be deductible/refundable. VAT is a transaction based tax and arises at each stage of the supply chain although some goods and services are Vat exempt, with generally no right of recovery for input VAT. Standard rate vat is currently 23%. The 13.5% rate applies to certain services & goods.  The 9% vat rate applies to certain tourism and some other sectors. Professional advice should be sought regarding rates of VAT to charge.

 

Capital Gains Tax (CGT)

Capital gains tax is chargeable on the gains arising from the disposals of assets including transfer by sale, exchange or gift or receipt of a capital sum. The death of an owner of assets is not an occasion of charge in respect of those assets. Where a disposal is made other than by way of an arm’s length sale between connected parties, the consideration is deemed to be equal to the market value of the asset at the date of disposal. The taxable gain is the amount of the consideration as reduced by “deductible expenditure”, that is, the cost of acquisition and certain enhancement expenditure.

 

Capital Acquisitions Tax (CAT)

Capital Acquisitions Tax is charged on gifts or inheritances received by beneficiaries. The current rate of 33% applies to cumulative gifts or inheritances received within 3 separate Class Thresholds as follows:

Class A applies from parent to child. Class B applies between brothers/sisters and between uncle/aunt to nephew/niece. Class C applies to all others. Agricultural Relief, Business Relief and annual Gift Tax exemption are some of the very valuable tax reliefs that need to be used to minimise this tax. CAT requires planning over the medium to long term to use these reliefs.

 

Stamp Duty (SD)

Stamp Duty is a duty charged on certain written documents (known as "instruments"). Not every instrument is liable to stamp duty. To be liable an instrument must be listed in Schedule 1 to the Stamp Duties Consolidation Act 1999. It must also be executed in Ireland or, if executed outside Ireland, it must relate to property situated within Ireland or something done or to be done in Ireland.

 

 Liam McGrath & Co

                                

Chartered Certified Accountants

& Chartered Tax Advisors

GDRP Compliance

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GDRP Compliance

Dublin Road, Roscrea, Co Tipperary.

          Tel: 0505-22992

           Mob: 087-9060666

        

E-Mail: liammcgrath.roscrea@gmail.com