THREE YEAR COMPANY START UP RELIEF

A three year Corporation Tax Relief was introduced for new trades commencing between 1 January 2009 and 31 December 2014.

Relief is limited to the amount of Employers PRSI subject to a cap of €40,000 Corporation Tax.

Marginal  relief is granted where Corporation Tax payable is between €40,000 and €60,000.

The relief applies to a new trade which was not previously carried on by another person or the activities of which did not form part of another person’s trade.

From 1 January 2013 unrelieved Employers PRSI can be carried forward to reduce Corporation Tax, following the three year start up period.

However Corporation Tax relief can not exceed Employers PRSI paid for an accounting period.