Start-up companies in Ireland can benefit from an exemption from paying corporation tax for the first three years of their existence.  The purpose is to alleviate some of the burden and allow new companies to get abreast of any cash flow problems without the additional worry of corporation tax.
There are conditions which apply to qualifying for this relief as follows;-

  • The company must be incorporated in Ireland prior to the 31st December 2015
  • Management and control of the company must take place in Ireland
  • The company must be liable for Irish Corporation tax at the headline rate which is currently 12.5%
    There are several companies that will not be able to take advantage of this offer, such as companies that are part of an existing structure, professional services such as accountants or lawyers and companies that trade in land dealing, petroleum and mineral activities.

One condition of this exemption is that the total tax liability is less than €40,000.  Companies with a tax liability of between €40,000 – €60,000 will still be able to get marginal relief.
There are several jurisdictions that offer zero corporate tax rates.  Ireland as an example also enjoys the advantages of being a full EU member and a well respected jurisdiction, but if you would like to hear more regarding the advantages of other jurisdictions please do not hesitate to contact us.