1. Corporation Tax Rates of Corporation Tax Standard Rate – 12.5%
Most trading income (Case I/II)
Chargeable gains
Higher Rate – 25%
Investment Income – Case III, IV, V
Companies cannot earn employment income, therefore cannot be taxed under Schedule E

2. Corporation Tax Dividend Income
Dividends from other Irish resident companies are not charged to CT.
Referred to as Franked Investment Income (FII).
No charge under Schedule F.
This dividend income is not included in the CT computation.

3. Corporation Tax Foreign Dividends
Foreign dividends taxed under Case III.
Case III is taxed at the higher rate.
But, foreign dividends arising from trading activities by a company resident in either another EU state or a country that Ireland has a double tax treaty with can be taxed at 12.5% rather than 25%, if the company so elects.

4. Corporation Tax Basis of Assessment and Accounting Periods
Income Tax year irrelevant for CT.
A company’s accounting period forms the basis of assessment for CT.
Company is chargeable on the profits earned in their accounting period, regardless of when it falls in the year.

5. Corporation Tax Basis of Assessment and Accounting Periods
Usually, an accounting period for CT purposes corresponds to the company’s period of account, which is the period for which the company prepares annual accounts.
However, for CT purposes an accounting period cannot exceed 12 months.

6. Corporation Tax Basis of Assessment and Accounting Periods
If a company’s period of account extends beyond this maximum, it will be necessary to split the period of account into two (or more) account periods.
The first period will relate to the first 12 months of the period and the second will relate to the remainder.

7. Corporation Tax Basis of Assessment and Accounting Periods
Example: a company prepares accounts for 18 months to 30 June The accounting periods used to calculated the CT liability are:
12 months to 30 December 2013
6 months to 30 June 2014

8. Corporation Tax Commencement of an accounting period
The end of the preceding accounting period
A company commences to carry on a trade
A company becomes resident in the State
A company acquires its first source of income
A company commences to be wound up

9. Corporation Tax Cessation of an accounting period
Expiration of 12 months from beginning of accounting period
Accounting date of the company
A company beginning or ceasing to trade
A company beginning or ceasing to be within the charge to CT in respect of its trade

10. Corporation Tax Cessation of an accounting period
A company beginning or ceasing to be resident in the State
Commencement or completion of a winding up

11. Corporation Tax Cessation of an accounting period
A company beginning or ceasing to be resident in the State
Commencement or completion of a winding up

12. Corporation Tax Allocation of profits between accounting periods
Apportioned on a time basis
18 month accounting period to 30 June 2014
Tax adjusted Case I profit €100,000