Direct Tax Acts, Finance Act 2018

21 The charge to corporation tax and exclusion of income tax and capital gains tax
CTA76 s1(1), (2) and (3); FA97 s59(1); FA98 s55, FA99 s71; FA01 s82; FA02 s53(3)

[(1) Corporation tax shall be charged on the profits of companies at the rate of –

(a) 32 per cent for the financial year 1998,

(b) 28 per cent for the financial year 1999,

(c) 24 per cent for the financial year 2000,

(d) 20 per cent for the financial year 2001,

(e) 16 per cent for the financial year 2002,

(f) 12½ per cent for the financial year 2003 and each subsequent financial year.]1

[(1A) (a) In this subsection –

qualifying shipping activities” and “qualifying shipping trade” have the same meanings respectively as in section 407;

(b) Notwithstanding subsection (1), for the financial year 2001 and 2002, in relation to a company carrying on a qualifying shipping trade, profits from qualifying shipping activities carried on in the course of the qualifying shipping trade shall be charged to corporation tax at the rate of 12½ per cent.

[(c) Notwithstanding subsection (1), for the financial year 2002, in relation to a tonnage tax company (within the meaning of Part 24A), tonnage tax profits shall be charged to corporation tax at the rate of 12½ per cent]3]2

(2) The provisions of the Income Tax Acts relating to the charge of income tax shall not apply to income of a company (not arising to it in a fiduciary or representative capacity) if –

(a) the company is resident in the State, or

(b) the income is, in the case of a company not so resident, within the chargeable profits of the company as defined for the purposes of corporation tax.

(3) Subject to section 649, a company shall not be chargeable to capital gains tax in respect of gains accruing to it so that it is chargeable in respect of them to corporation tax.

Go to Revenue Guidance Notes on TCA

Amendments

1 Substituted by FA99 s71
Note that earlier amendments in FA98 s55 had determined the 36% rate for the year to 31 March 1998

2 Inserted by FA01 s82 with effect from 1 January 2001

3 Inserted by FA02 s53 to take effect by Ministerial Order

Revenue Guidance

Guidance on Revenue Opinions on Classification of Activities as Trading – TB57, October 2004 p10

Amendment to Tax and Duty Manual Part 02-02-02 - The charge to and rates of Corporation Tax – eBrief No. 019/18

Irish Tax Review Articles

Locating International Intellectual Property Rights in Ireland and the 12.5% Tax Rate. John Heffernan, Irish Tax Review, May, 2002

Trading Income – The Need for Solomon’s Wisdom! Liam Lynch, Irish Tax Review, January, 2003

Transfer Pricing and Ireland’s 12½ % Rate. Gavan Ryle, Irish Tax Review, September, 2003

Corresponding UK Tax Provision

Sections 6, Income and Corporation Taxes Act 1988. Section 6 is now re-enacted at various places in the Corporation Tax Act 2009. Refer to the Destination Table of that Act for details.

Sections referred to in text

section 407 [Restriction on use of losses and capital allowances for qualifying shipping trade]

section 649 [Companies chargeable to capital gains tax in respect of chargeable gains accruing on relevant disposals]

Cross references

21A Higher rate of corporation tax

22A Reduction of corporation tax liability in respect of certain trading income

78 Computation of companies’ chargeable gains

243B Relief for certain charges on income on a value basis

396B Relief for certain trading losses on a value basis.

452A Application of section 130 of Principal Act to certain non-yearly interest

487 Corporation tax: credit for bank levy

707 Management expenses

711 Chargeable gains of life business

713 Investment income reserved for policyholders

739 Taxation of unit holders in undertakings for collective investment

835P Corresponding corporation tax in the State

835R Controlled foreign company charge

864 Making of claims, etc

1009 Partnerships involving companies

1044 Bodies of persons

Sch 24 Relief from Income Tax and Corporation Tax by means of credit in respect of Foreign Tax