Irish Company Formation Offers 3 Year Tax Exemption

In an attempt to improve the number of new companies considering Irish company formation, a three year remission from taxation from profits and capital gains, for companies with a tax liability of less than €40,000 per annum was announced in the Budget 2009. The aim is to provide a stimulus for entrepreneurs and foreign investors considering Irish company formation.

Companies that qualify will be fully exempt from corporation tax on trading profits and chargeable gains on the disposal of assets used for the new trade where the total amount of corporation tax does not exceed €40,000.

At the current rate of corporation tax i.e. 12.5% this equates to €320,000 of profits per year. Where corporation tax for the period is between €40,000 and €60,000, marginal relief will apply. No relief is available where corporation tax liability for the period exceeds €60,000.

Company formation Ireland offers 3 years tax exempt period

This relief will apply for three years from the commencement of the new trade. Therefore the company could shelter from tax up to €960,000 of trading profits over a three year period.

The following conditions apply:

- Irish company formation must be on or after 14th October 2008
- The company must commence to trade during 2009
- The trade must be a new trade and must not have been carried on previously by another person in the State.
- The tax relief will apply for 3 years from the commencement of the new trade.
- The tax relief does not apply to companies that are dealing in land or petroleum and mineral activities.
- The tax relief does not apply to professional service companies.
- The tax relief for companies operating in the road transport sector is restricted to a total of €100,000 over the 3 year period.
- These provisions will not come into operation until a Ministerial Commencement Order is made which should occur after consultation with the European Commission.

Advantages of company incorporation Ireland

The advantages of company incorporation Ireland can be summarised as follows:

- Ireland has an excellent international corporate image and an excellent holding company regime
- Low corporate taxes with a universal rate of 12.5% on trading profits
- Extensive network of Double Taxation Treaties. Agency Agreements can be used also.
- Committed European Union and Eurozone Member.
- English speaking jurisdiction.
- Europe's premier corporate domicile for multinational inward investment.
-Excellent telecommunications infrastructure.
-Low capitalisation costs when compared with most EU jurisdictions.
-Ideal for international Joint Ventures where participants wish to incorporate in a neutral state.

The company incorporation Ireland advantages, such as the above, have convinced numerous multinationals to relocate their corporate domicile to Ireland. So why not consider the many benefits of Irish company formation and make Ireland your corporate base for all your European activities.

As Operations Director of a
European Company Formation specialist, Heather Landau has gained a wealth of experience in the Company Formation industry. Please visit website for further Irish Company Formation information.