Personal income tax is paid at the standard or marginal rate, with ancillary PRSI and USC collected at the same time. Details of current income tax rates and information on deductions are available on request. Tax compliance dates, rates and rules change from time to time and the late payment of tax or late filing of returns can lead to the imposition of surcharges, interest and penalties. Mc Nerney & Co. provide a full range of compliance services across all tax heads including the preparation of tax calculations and the submission of income tax and capital gains tax returns. The firm can advise on when tax payments fall due, what level of tax should be paid, and whether there is scope to reduce tax by maximising available credits and reliefs, or restructuring income. We can also deal with any post-submission and dispute resolution matters which may arise.
Corporation tax is paid on the trading profits, income and most gains of tax-resident companies or operating branches in Ireland, at 12.5% for active trading income and 25% for other sources of income such as foreign profits, and passive income, e.g. rent or deposit interest. This is a relatively low rate of corporation tax in Eurozone terms and it is one of the cornerstones of Ireland’s tax policy, as it is used as an incentive for foreign companies to invest in the State. Mc Nerney & Co. provide a full range of compliance services including consultancy advice on corporate restructuring proposals, advice on dealing with transactions tax efficiently to manage cashflow, and the preparation of tax calculations with the submission of corporation tax returns.
Value Added Tax
VAT applies to the supply of goods or services in the course of business. VAT is a European rather than an Irish tax, based on EU law as transposed into Irish law.
The VAT rules vary significantly depending on the nature of the goods or service being supplied, and VAT can be a significant cost in any transaction. Generally, if the person receiving the supply is a VAT accountable person, any VAT paid by the business can be reclaimed; so there is no cost to the business. However, a person operating in a VAT-exempt business (such a medical doctor) cannot reclaim any VAT paid- so it can be a real cost of running certain types of businesses. VAT on property transactions can be quite complex, and the level of VAT charged on a property transaction can be significant, depending on the value of the property. Mc Nerney & Co. provide a VAT consultancy service dealing with property transactions. We also advise on any VAT issues arising on the sale or supply of a business, and we provide a compliance services for all areas of VAT, including the preparation and filing of periodic and annual VAT returns, Intrastat and VIES returns.
Capital Gains Tax
CGT is paid on the disposal of assets at a gain by gift or sale, and can arise on a wide range of transactions from appointments out of trusts to corporate reorganisations. The rate of CGT and the due dates for paying tax have changed frequently in recent years and details of historic CGT rates are available on request.
Mc Nerney & Co. have extensive experience in dealing with CGT issues. We can assist with the CGT implications of estate transactions, trusts, break-up of settlements and re-organisations, and advise on the purchase and disposal of investment and business assets. Mc Nerney & Co. can advise on when CGT payments fall due, calculate the CGT that should be paid, and consider whether there is scope to reduce or defer CGT by claiming reliefs.
Gift & Inheritance Tax
Officially known as Capital Acquisitions Tax, or CAT, and payable by the person receiving the benefit. CAT arises where a gift or inheritance is taken by, or from, a person who is tax resident in Ireland, or if it comes in the form of an asset situated in Ireland such as real property, Irish shares or bank deposits. There are three lifetime tax free thresholds, dependent on the beneficiary-to-disponer relationship, and below which no CAT is paid. The CAT thresholds and rates change from time to time. Further details and how they apply to your particular circumstances are available on request. Mc Nerney & Co. provide a comprehensive CAT management service including advance estate planning, projecting CAT on gifts or inheritances, filing returns, and support in dealing with Revenue in cases where taxpayers are selected for audit.
Stamp duty is a tax on certain written instruments executed in Ireland, such as a Deed transferring property, and it a tax borne by the purchaser or transferee.
The administration of stamp duty has changed considerably and there is now mandatory e-Filing for stamp duty returns. Stamp Certificates are issued once the return has been filed and the stamp duty has been paid in full. Mc Nerney & Co. provide advice on stamp duty provisions and reliefs. We can assist in efficiency planning, claiming reliefs, and in assessing the stamp duty cost of investments or gifts.