Ireland: Domestic Corporate Taxation
In Ireland the main tax impinging on companies is corporation tax, which applies both to trading income and to capital gains. As a member state of the EU, Ireland applies the VAT directives; currently the rate of VAT is 23%. Stamp duties apply to some transactions. The Department of Finance, headed by the Minister for Finance has responsibility for the taxation system; day-to-day administration of the tax system is in the hands of the Revenue Commissioners, a division of the Ministry.
The Irish Revenue Commission has consulted with tax practitioners, industry representative bodies, software providers and taxpayers over proposals to introduce mandatory e-filing for certain categories of taxpayer.
The mandatory e-filing regulations were first launched in 2008 following a public consultation process, and introduced requirements that Government Departments and Offices, State Bodies and Ireland’s largest companies should file and pay certain taxes and tax liabilities electronically.
The Revenue decided to introduce these obligations in three phases. Government Departments, certain named Government Offices and companies whose tax affairs are dealt with by Large Cases Division came within Phase 1, with effect from January 1, 2009.
The Revenue’s intention for Phase 2 came into effect on January 1, 2010 and includes larger companies with a turnover of more than EUR7.3m and with more than 50 employees. Phase 2 also includes all public bodies.
Phase 3 includes all categories of taxpayers to pay and file returns electronically from 1 June 2011; This includes all trusts, partnerships and companies as well as the self-employed. In addition, from June 1, 2011 all stamp duty returns and payments must be made electronically.
A 'Jobs Initiative' announced by the government in May 2011 introduced a temporary second, reduced 9% rate of VAT on the provision of certain goods and services, a move largely targeted at stimulating the lagging tourism industry. The 9% rate is available to restaurant and catering services, hotel and holiday accommodation, certain entertainment services, hairdressing, brochures, maps, programmes and newspapers. It is in force from July 1, 2011 until December 31, 2013, on which date the rate will revert to 13.5%.