Tax Registration for an Irish Limited Company

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

In Ireland, there are three main types of taxes that a company can register for:

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

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.

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 – €75,000 for goods and €37,500 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.

Employers PAYE/PRSI:

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, PRSI & USC on all staff salaries and also pay PRSI for each employee at a rate of 10.75%. The liability is paid by filing a P30 online (monthly, bi-monthly or quarterly).

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