Corporation Tax Compliance

Preliminary Tax

Is your company a small company for preliminary tax purposes?

A small company is one whose prior year corporation tax liability was less than €200,000. A small company is required to pay preliminary for the year, one month before the year end. A small company can either pay 100% of the prior year's income tax liability or 90% of the current year's liability.

As most businesses certainly suffered the effect of the recession in the last year, you should estimate what you believe you current year corporate tax liability is and pay 90% of that amount as opposed to paying 100% of the prior year liability. Thus, you will avoid overpaying corporation tax for the year. This is certainly more efficient for your business as this money could be earning interest in a deposit account as opposed to holding the money with Revenue for a number of months.

Filing Tax Returns

Have you overpaid your preliminary tax for the year and are you due a refund of corporation tax?

Do not leave it until the due date to file your corporation tax return. The earlier you file your return, the earlier you will receive your refund from the Revenue Commissioners.

Late Filing of Tax Returns

Are you in the habit of filing your tax returns late? Revenue imposes interest and penalties on you for late payment and filing of returns. Ensure you file your return on time and do not waste cash on unnecessary interest and penalties.