The two rates
Tax base
Up to €42,500 of profit
- Rate
- 15%
- Condition
- Revenue under the legal ceiling, capital fully paid up and at least 75% held by individuals
Tax base
Above €42,500
- Rate
- 25%
- Condition
- None
| Tax base | Rate | Condition |
|---|---|---|
| Up to €42,500 of profit | 15% | Revenue under the legal ceiling, capital fully paid up and at least 75% held by individuals |
| Above €42,500 | 25% | None |
€42,500Profit ceiling for the reduced rate, per twelve-month financial year.
The instalment calendar
Corporation tax is paid in advance, in four instalments based on the previous year’s profit, then a balancing payment after the year end.
- 15 March, 15 June, 15 September, 15 December for a calendar financial year.
- The balance is due by the 15th of the fourth month after the year end at the latest.
- First financial year: no instalments, as there is no reference year.
What reduces the tax you owe
A tax credit is set against the tax, not against the profit. The difference is huge: €10,000 of credit is worth €10,000, while €10,000 of deductible expense is worth €2,500.
- Research tax credit — eligible R&D spending.
- Innovation tax credit — for SMEs, on prototyping.
If you make a loss
The loss can be carried forward with no time limit and set against future profits. On option, it can also be carried back to the previous financial year.