Known as a limited liability company – it has full legal capacity in all EU countries and can set up branches there.
it is an independent legal entity like English Limited. Therefore, Irish Limited always makes a legal distinction between the Company and its shareholders: Claims against third parties against the Limited are generally directed only against the Limited, not against the shareholders.
There is no minimum capital requirement for Irish Limited companies.
At least 1 director, 1 shareholder and secretary must be registered.
If only one director is registered, the secretary cannot be the same person.
The director must be resident in an EEA country. The registration office of an Irish limited liability company acquires its legal capacity and capacity to register by registering with the Companies Registration Office.
Each Irish Limited is required to submit an annual report (status report) and an annual report (accounts) once a year. The annual report contains the following information: director, shareholder, secretary and the purpose of the company. Changes in this regard must be presented.
The first annual report is due six months after the establishment of the company. No financial statement is required for this annual report. The next annual report shall be submitted 12 months after the first annual report and once a year on the same day.
What happens if I submit my annual return in Ireland late? If the time limit is exceeded, a fine of EUR 100 will be imposed, plus a fine of EUR 3 for each day after the time limit is exceeded. In addition, the company loses the so-called exemption from investigations.
Taxation in Ireland is structured under a progressive system, meaning that individuals and businesses pay taxes based on their income or profits. Below is a high-level overview of the key taxes in Ireland:
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1. Income Tax
• Tax Rates (2023):
o Standard Rate (20%): Applies to income up to €40,000 for individuals (€49,000 for married couples with one income).
o Higher Rate (40%): Applies to income above the thresholds above.
• Tax Credits: Tax credits reduce your tax liability. Common credits include:
o Personal tax credit (€1,775 for individuals, €3,550 for married couples).
o PAYE credit (€1,775 for employees).
o Home Carer credit and others.
• Universal Social Charge (USC):
o A separate charge applied to gross income, subject to income thresholds.
o Rates range from 0.5% to 8%, depending on income.
• Pay-Related Social Insurance (PRSI):
o Contributions by employees and employers fund social welfare benefits.
o Employees typically pay 4%, while employers contribute a higher rate.
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2. Corporation Tax
• Standard Rate (12.5%): Applies to trading income of most companies.
• Higher Rate (25%): Applies to non-trading income, such as investment income and rental income.
• Research & Development (R&D) Tax Credit: Generous tax incentives for qualifying R&D activities.
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3. Value-Added Tax (VAT)
• A consumption tax added to most goods and services.
• Standard Rate: 23%.
• Reduced Rates: 13.5% (e.g., tourism and hospitality) and 9% (certain items like newspapers and electricity).
• Some goods and services are exempt (e.g., education, health).
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4. Capital Gains Tax (CGT)
• Rate: 33%.
• Exemptions and reliefs apply, such as for the disposal of a principal private residence or small business relief.
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5. Capital Acquisitions Tax (CAT)
• Applies to gifts and inheritances.
• Rate: 33%.
• Tax-free thresholds depend on the relationship to the giver:
o Group A (e.g., child): €335,000.
o Group B (e.g., siblings, nieces): €32,500.
o Group C (all others): €16,250.
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6. Stamp Duty
• A tax on property transactions and certain documents.
• Rates:
o Residential property: 1% for the first €1 million; 2% on amounts above.
o Non-residential property: 7.5%.
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7. Local Property Tax (LPT)
• Based on the market value of residential properties.
• Rates vary depending on the value band and local authority adjustments.
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8. Excise Duties
• Applied to alcohol, tobacco, fuel, and certain goods (e.g., sugary drinks).
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9. Carbon Tax
• A tax on fossil fuels like coal, gas, and oil to reduce emissions.
• The rate is €48.50 per tonne of CO2 (2023), increasing annually.
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10. Customs Duties
• Levied on goods imported from outside the EU, particularly since Brexit.
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Tax Filing and Compliance:
• PAYE System: Employers deduct income tax, USC, and PRSI from wages.
• Self-Assessment: Self-employed individuals and landlords file tax returns annually via the Revenue Online Service (ROS).
• Deadlines: Income tax returns are generally due by October 31 each year (or mid-November for online filers).