Irish Company Tax Registration

Once a company has been incorporated it should immediately register for the appropriate taxes. By law, Irish companies are required to register for tax and file returns with the Revenue.

This article will help guide you with Irish company tax registration. There are three main types of taxes that a company can register for:

    1. Corporation Tax
    2. Value Added Tax
    3. Employers PAYE/PRSI

1. Corporation Tax:

It is mandatory for all Irish companies to register for Corporation Tax within one month of trading. The process typically takes up to 2 weeks but may take longer depending on the volume of registrations at the time. The Corporation Tax rate in Ireland currently stands at 12.5% and 6.25% for companies involved in Research and Development. Companies with non-resident directors may need to demonstrate an active trade in Ireland to successfully register.

2. Value Added Tax:

VAT is essentially a sales tax and tax on consumer spending. It is not mandatory to register for VAT unless certain thresholds are reached – €80,000 for goods and €40,000 for services. If your business is VAT registered, you must charge VAT on sales but can reclaim the VAT incurred on its purchases. The standard rate for goods & services is 23% and the reduced rate for fuels, building services and take-out food is 13.5%. Companies with non-resident directors will need to demonstrate an active trade in Ireland and/or human/technical resources to successfully register.

3. Employers PAYE/PPS:

If your company will be employing staff they will need to be registered with Revenue beforehand. The company will then be liable to collect PAYE, PPS & USC on all staff salaries. An Irish employer or employer must have a PPS number if they want to be on Irish payroll. Employers pay 8.8% Class A employer PRSI on weekly earnings up to €386. Employers pay 11.05% Class A employer PRSI on weekly earnings over €386 (increase to €395 from 1 February 2020).

P30 filings were abandoned since Jan 2019, so there are electronic monthly statements to be submitted to revenue based on the payroll information that has been provided to the Revenue during a particular month.

We can assist with Irish Company Tax Registration and VAT for your Irish company as well as PAYE registration for Irish residents directors.

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Frequently Asked Tax Questions 

What is required to register for Corporation Tax and Vat? 

The company must have a physical presence in Ireland, such as an office, warehouse, etc. The company directors, shareholders or employees should be based in Ireland. A registered office address in Ireland is not enough to prove a continuous economic link to the state. The company should trade from Ireland and sell to Irish customers. 

What is the payable tax in Ireland for an LTD who provides online services (Ecommerce Website)?

Standard VAT rate of 23% applies to all sales (on and offline).

Do I need to charge VAT for services sold outside of Ireland?  

A VAT registered company will charge VAT on all B2C sales and will charge VAT on sales to non-VAT registered B2B that are based in the EU. Sales outside the EU are VAT exempt.

If would like more information about Irish Company Tax Registration and VAT please contact us today and member of our team would be happy to assist you.

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