Brief summary of some tax rates in Ireland in 2012 and 2013

Brief summary of some tax rates in Ireland in 2012 and 2013

(A) Corporation Tax is the taxed charged on the profits of a company. They are calculated on an annual basis on the taxable profits of the business

Trading Profit and foreign dividends derived from trading income are taxed at 12.5%.

Start up Relief: if you start a company and it is not set up to replace a former trade (i.e. you not switching an existing trade to a new company whether sole trade or another company) then  the first 40000 of corporation tax over the first three years is not collectable by the Revenue. This is linked to employers prsi at a limit of 5000 per employee.

Non trading income such as interest, foreign rental income, miscellaneous income and rental income are all taxed at 25%.

If you have investment or estate income and do not distribute it to shareholders by the end of 18 months then any of this income not distributed is subject to a surcharge of 20%

The same is true for a service company at the end of 18 months but at a rate of 15%.

Company chargeable gains are taxed at 25%.

Vat

The Vat rates are

0%

5.2% Farmers flat rate

13.5% reduced rate which for certain industries is 9% until December 2013

23% standard rate

The rate you charge depends on your product or service. There is a list on www.revenue.ie .

Some business such as in the education and medical fields are exempt from vat.

Capital acquisitions tax is charged at 30% on all amounts over the relevant thresholds. If you receive the following amounts from these people then you are exempt from the tax. However the amount is cumulative so if you get 100,000 of your mother in 2010 and 200,000 from your father in 2012 then the 50,000 over the 250,000 limit is taxable

(1)   parent to son or daughter 250,000

(2)   Brother or sister, nephew or niece 33,500

(3)   Cousin or stranger 16,750

Stamp Duty

Stamp duty on transfers or conveyance of land or buildings is at the following rates

(1)   non residential property 2&

(2)   Residential: first 1,000,000 is at 1% and balance is at 2%