Tax relief for new start-up companies
Overview
If you have started a new company, you may be able to apply for tax relief for start-up companies. This tax relief, also known as Section 486C tax relief, is a reduction of your Corporation Tax (CT) for the first five years you trade.
The relief can be applied to the profits from your new trade and on chargeable gains made on assets used in that trade.
You may be entitled to relief if your CT due is €40,000 or less in a tax year. If your CT due is between €40,000 and €60,000, you may be entitled to partial relief.
Tax relief for start-up companies also depends on the amount of employer's Pay Related Social Insurance (PRSI) you pay. This must be a maximum of €5,000 per employee and €40,000 overall.
Since 2013, it may be possible for your company to carry forward any unused relief from:
- the first five years of trading where the qualifying trade commenced on, or after, 1 January 2018
- or
- the first three years of trading where the qualifying trade commenced before 1 January 2018.
Certain restrictions may apply and they are outlined in this section.
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