What are the corporation tax rates?
Trading income is taxed at 12.5%. Foreign dividends derived from trading income are also taxed at 12.5% (previously 25%). If the dividend is not paid form trading profits, it is taxed at 12.5% provided; 75% or more of the paying company’s profits are trading profits, or derived from trading profits arising in EU States or treaty countries, and 75% or more of the recipient’s assets, on a consolidated basis, must consist of trading assets.
In the case of a company that commences trade and is not taking over any other trade, up to €40,000 of corporation tax can be relieved for each of the first three years of trading, but the relief is linked to the amount of employer’s PRSI paid, subject to a maximum of €5,000 per employee. The relief does not apply to trades carried on by associated companies. This expires on 31.12.2018.
Non-trading income (for example, interest, income from foreign property, miscellaneous income and rental income) is taxed at 25% (the higher rate).
The KDB(Knowledge Development Box) rate of corporation tax on profits from patented inventions and copyrighted software (qualifying assets) is 6.25%.