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.

Companies Taxation
Companies pay Corporation tax which charged on the company’s profits which include both income and chargeable gains

Corporation Tax Rates<
  • 5% for trading income unless the income is from an excepted trade (include land dealing activities) in which case the rate is 25%
  • 25% for non-trading income (e.g. investment income, rental income)

Trading option- whether trade as a Sole Trader or as a Company?

Your own individual circumstances will dictate whether you should operate as a limited company or as a sole trader. In addition to the taxation issues you need to consider there are various other practical and legal matters which should be taken into account when setting up a company and on which you should seek professional advice.

We can help you set up your limited company quickly and cost effectively and from there we can help you manage your obligations. However before you decide to trade as a limited company you should ask yourself if it is definitely the right option for your business. A limited company is a distinct legal entity that is able to enter into contracts in its own name. The fact that the company is a separate legal entity from its owners is very important as it means that all the company’s liabilities are the responsibility of the company – not that of the directors and shareholders!

Although there is perceived prestige in operating as a limited company you will lose some of your privacy – directors’ and shareholders’ personal details and abridged accounts have to be filed and are open to public scrutiny.