An exemption from Corporation Tax (CT) for the first three years of trading applies to certain new startup companies.
Where a company is incorporated after 14 October 2008 and commences to trade in 2016, 2017 or 2018, it is exempt from CT and Capital Gains Tax (CGT) on the disposal of assets used for the purposes of the new trade. The exemption is subject to a liability threshold, and no relief will be available where profits exceed €480,000.
CORPORATION TAX LIABILITY FOR THE PERIOD AVAILABILITY OF RELIEF
€40,000 Full exemption
€40,000 to €60,000 Marginal relief
€60,000 Fully taxable
The relief is restricted to new trades and does not apply where the trade was previously carried on by another person, where the trade, or part of trade was carried on by an associated company.
Any unused relief in the first three years of trading may be carried forward to subsequent periods.
The relief is limited to the amount of employer PRSI that is paid. There is a cap of €5,000 applicable per person, with an overall limit of €40,000.
The relief does not apply to companies carrying on professional services, nor does it apply to companies which carry on a trade of:
This relief is due to end on 31 December 2018 as it will not apply to companies who commence trading in 2019.
IE Domain Registry (IEDR) has reported that 39,523 new .ie domains were registered in 2017- an average of 108 a day. The figure is a 14% increase on 2016 and the biggest single year for new registrations. The increase was driven by nationwide demand, with new registrations up in all but four counties on the island of Ireland. Corporate bodies and sole traders make up the majority of new .ie registrations (67%) in 2017. The following table shows the figure per province:
LEINSTER 66% 24,776
MUNSTER 20% 7,905
CONNACHT 9% 4,866
ULSTER 5% 1,976
Online address registrations are often recognized as a forward indicator of economic growth and entrepreneurship.
We would like to hope that these increases in .ie domains are leading to larger increase in local businesses in Ireland.