This relief enables start up companies, which are incorporated and commence trading in 2009 to have an exemption from corporation tax and capital gains tax in each of the first 3 years of trading. This tax break is the first of its kind and is a major advantage to eligible companies.
How it works:
The exemption is granted by reducing the total corporation tax liability (including chargeable gains) relating to the trade to nil. Full relief is granted where the total corporation tax liability does not exceed €40,000.
Marginal relief applies for companies with corporation tax liabilities of between €40,000 and €60,000.
No relief applies where corporation tax payable is €60,000 or more. The exemption is only available for a period of three years from the commencement of the new trade.
There are separate exemptions available for each new trade.
Where the relief doesn’t apply:
· When existing trades have been transferred to a new company
· Service companies and companies carrying on excepted trades cannot qualify for this exemption.
· The relief will cease if the trade qualifying for the exemption is transferred to a connected person.
Monday, September 28, 2009
Monday, September 14, 2009
Claiming a tax refund
CLAIMING A TAX REFUND
If tax has been deducted from your pay since 1 January last and you are now unemployed you may be entitled to a tax refund. If you have not paid any tax, you cannot claim a refund on becoming unemployed.
If you are entitled to a tax refund the amount of the refund will depend on:
The length of time you have been unemployed
The amount of tax you have paid
The amount of tax credits utilised by you.
When to apply?
Generally you should wait a minimum of 4 weeks from the date you became unemployed before you apply for a tax refund.
If however you are in receipt of any taxable sources of income (which would include taxable income from the Department of Social, Community and Family Affairs) you should wait a minimum of 8 weeks, as, any tax credit will be utilised in part or full against the other income.
If emergency tax was deducted by your former employer, you may apply immediately for a refund on becoming unemployed.
How to apply:
Complete Form P50 and send it to your district office together with Form P45 (Parts 2 & 3) given to you by your former employer.
The district office will send you details of the refund (if any) and a cheque for the amount overpaid.
Time Limit
Claims for refunds must be made within 4 years of the end of the year to which the claim relates and claims made after this time cannot be repaid.
If you are in receipt of Jobseekers Benefit while unemployed, this will affect your claim for a tax refund. Jobseekers Benefit is a taxable source of income. However, any child dependent element and the first €12.70 per week of benefit are exempt from tax. When you make a claim for a tax refund the taxable portion of the Jobseekers Benefit will be added to your pay and the appropriate refund, if any, will be made. You should note that if the weekly amount of your Jobseekers Benefit exceeds your weekly tax credit you will not be entitled to a refund.
If tax has been deducted from your pay since 1 January last and you are now unemployed you may be entitled to a tax refund. If you have not paid any tax, you cannot claim a refund on becoming unemployed.
If you are entitled to a tax refund the amount of the refund will depend on:
The length of time you have been unemployed
The amount of tax you have paid
The amount of tax credits utilised by you.
When to apply?
Generally you should wait a minimum of 4 weeks from the date you became unemployed before you apply for a tax refund.
If however you are in receipt of any taxable sources of income (which would include taxable income from the Department of Social, Community and Family Affairs) you should wait a minimum of 8 weeks, as, any tax credit will be utilised in part or full against the other income.
If emergency tax was deducted by your former employer, you may apply immediately for a refund on becoming unemployed.
How to apply:
Complete Form P50 and send it to your district office together with Form P45 (Parts 2 & 3) given to you by your former employer.
The district office will send you details of the refund (if any) and a cheque for the amount overpaid.
Time Limit
Claims for refunds must be made within 4 years of the end of the year to which the claim relates and claims made after this time cannot be repaid.
If you are in receipt of Jobseekers Benefit while unemployed, this will affect your claim for a tax refund. Jobseekers Benefit is a taxable source of income. However, any child dependent element and the first €12.70 per week of benefit are exempt from tax. When you make a claim for a tax refund the taxable portion of the Jobseekers Benefit will be added to your pay and the appropriate refund, if any, will be made. You should note that if the weekly amount of your Jobseekers Benefit exceeds your weekly tax credit you will not be entitled to a refund.
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