Paying Corporation Tax

Irish resident companies and non-resident companies who trade in Ireland through a branch or agency pay Corporation Tax (CT) on the taxable profits they make. There are some exceptions where they may be exempt.

A company must use Revenue Online Service (ROS) to file its return and pay any tax due under Mandatory e-Filing.

A company has to:

• calculate and pay preliminary tax by the specified due date
• complete and file a CT1 Form and a 46G Form (Company) by the return filing date
• pay any balance of tax due by the return filing date

A company must file its return and pay any tax due nine months after the end of the accounting period. The company must make this payment on or before the 23rd of the ninth month. Companies that fail to pay and file electronically must submit their return and pay any associated tax. These companies must pay this tax on or before the 21st of the month.

Interest is due at a daily rate of 0.0219% on late payments or payments that are not made in full. The interest is calculated by multiplying together the:

• amount of tax a company has underpaid
• number of days the tax is late
• interest rate

You cannot appeal an interest charge to the Tax Appeals Commission. Once interest has been charged you must pay the full amount outstanding, it cannot be reduced.

If the company sends the return after the deadline they will also have to pay a surcharge of:

• 5% of the tax due up to a maximum of €12,695 if filed within 2 months of the filing date, or
• 10% of the tax due up to a maximum of €63,485 if filed more than 2 months after the filing date

If the company sends the return after the deadline there will be restrictions on certain reliefs claimed. The restrictions will apply by reference to length of the delay in filling on claims for:

• excess capital allowance
• loss relief
• group relief

How to submit a Preliminary Corporation Tax return PTL 1 or PTL 2

Sign into ROS. Under Payment and Returns section select:

• tax payment/declaration
• corporation tax
• make a payment
• the period you wish to make a payment or nil deduction for

If the period you require is not available please contact Collector General's Division.

See Late Submission of Returns manual for more information.

Large companies

Large companies may pay their preliminary tax in two instalments. A large company is a company whose CT liability was above €200,000 in the previous accounting period. Where the previous period is less than 12 months, the tax due must be ‘annualised’. This is to determine if the company qualifies as a large company.

Notional allocation of preliminary tax payments is allowed between group members. The preliminary tax payments the group makes will be assessed to minimise the interest amount large companies have to pay. If a company chooses this option, it must first apply to Revenue’s Debt Management Task Force. The company must then pay 100% of the CT due by the return filing date.

Small companies

A small company is a company whose CT liability is not above €200,000 in the previous accounting period. This is excluding surcharges and Section 239 income tax. Where the previous period is less than 12 months, the tax due must be 'annualised'. This is to determine if the company qualifies as a small company.

Small companies can base their preliminary tax for an accounting period on:

• 100% of their CT liability for the previous accounting period
• 90% of their CT liability for the current period (and there is provision for a top up payment to be made)

The amount of preliminary tax paid cannot be less than the lower of either of these.

If you chose the 100% rule and the previous period is less than 12 months, the CT liability must be ‘annualised’.

New or start-up companies

New or start-up companies do not have to pay preliminary tax for their first accounting period if they have CT that is less than €200,000. This is excluding surcharge but including Income Tax payable under Section 239 TCA 1997. Instead, they must pay their final CT charge for the first accounting period when submitting their CT return.

Large companies

Large companies can pay their preliminary CT in two instalments when their accounting period is longer than seven months.

The first instalment is due on the 23rd of the sixth month of the accounting period. The amount due is either:

• 50% of the CT liability for the previous accounting period
• 45% of the CT liability for the current accounting period

The second instalment is due on the 23rd of the eleventh month. This will bring the preliminary tax up to 90% of the final tax due for the current accounting period.

The company must pay 90% of the preliminary tax in one instalment if the accounting period is less than seven months.

Small companies

Small companies must pay their preliminary tax in one instalment if they have a CT liability of less than €200,000 in their previous accounting period. This must be paid 31 days before the end of their accounting period, and before the 23rd of that month.

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