A Refresher On Irish Tax Filing Deadlines
Corporation Tax Returns
A company's Corporation Tax return is due 9 months after the end of the accounting period, but no later than the 21st day of that month. For example, where the company's period end is 31 December 2011 the tax return will be due by 21 September 2012. Where tax returns and payments are made electronically, via the Revenue Commissioners' Online System, the tax return filing and payment deadlines are extended to the 23rd day of the month, therefore for the period ended 31 December 2011 the tax return and payment are due by 23 September 2012.
The penalty for the late filling of a tax return is 5% of the tax liability (up to a maximum of €12,695) if filed within two months of the due date, and 10% of the liability (up to a maximum penalty of €63,485) if filed thereafter. A delay in filing the tax return may lead to a restriction on the use of certain tax losses, reliefs and allowances normally available to a company.
Preliminary Corporation Tax
A company is obliged to pay Preliminary Corporation Tax (PCT), which is a payment on account of the liability due, by the 23rd day of the month before the company's accounting period end. For example, a company with an accounting period ended 31 December 2011 must pay its PCT by 23 November 2011.
The amount to be paid as PCT must be at least 90% of the tax liability for the current period, or where the preceding period's liability is less than a threshold (currently €200,000), 100% of the preceding period's liability. For example if the final liability in 2010 was €10,000, the company may pay PCT of €10,000 in 2011 and this satisfies the company's PCT obligations. If the company expects to have lower profits in 2011 than in 2010, the PCT payment may be 90% of the expected 2011 tax liability.
Large companies (with a liability of over €200,000 in the preceding accounting period) are required to make two payments of PCT. The first payment is due in the sixth month of the accounting period, and the amount due is 50% of the tax liability for the preceding accounting period, or 45% of the liability for the current period. The second payment is due in the eleventh month of the period. The amount paid in the second instalment must bring the total PCT paid to 90% of the liability for the current period. For example, a large company with an accounting period ended 31 December 2011 will make its PCT payments on 23 June and 23 November 2011.
Dividend Withholding Tax
Dividend Withholding Tax (DWT) returns are due by day 14 of the month after the month in which the dividend is paid. A return of the dividend is due regardless of whether a DWT payment arises.
Close Company Surcharge Avoidance
A close company seeking to avoid a surcharge on estate and investment income should make a distribution of that income within 18 months of the end of the accounting period.
VAT & VIES Returns
In most cases VAT returns and VIES returns (also known as European Sales Lists) are due on the 23rd day of the month following the period to which the return relates.
Note: the above is meant as a general guide only; advice should be obtained in relation to specific cases or deadlines before any action is taken.
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