This material is provided in order to give the reader a general update and reminder of the more important tax filing and payment deadlines under the Irish self-assessment tax system.
The Corporation Tax (“CT”) return and the final tax payment are due by the ninth month after the accounting period (“AP”) end but no later than the 23rd day of that month; for example the CT return and payment for the period ended 31 December 2012 are due by 23 September 2013.
The penalty for the late filing of a tax return is 5% of the tax liability, up to a maximum of €12,695, where the tax return is filed within two months of the due date and 10% of the liability, up to a maximum of €63,485 if filed thereafter.
Where a company does not make the correct payment by the due date it will be liable to an interest charge of approximately 8% per annum from the due date of payment until the amount is paid.
Preliminary Corporation Tax
Preliminary Corporation Tax (“PCT”) for “large companies" i.e. companies with a liability greater than €200,000 in the preceding AP, is due in two instalments:
23rd day of the sixth month of the AP and must equal either 50% of the preceding period liability or 45% of the current AP liability;
23rd day of the second last month of the AP and must bring the total PCT paid up to 90% of the liability of the current AP.
As PCT is due before the end of the AP, companies are required to estimate their final tax liability in order to ensure the PCT payment is sufficient and interest charges do not arise.
For a small company, i.e. with a liability of less than €200,000 in the preceding AP, PCT is payable in one instalment, due by the 23rd day of the second last month of the AP. For example, PCT for the period ended 30 June 2013 is due by 23 May 2013. A small company may pay 100% of its CT liability for the preceding AP as PCT, thus eliminating the need to estimate the final tax liability.
Close Company Surcharge
The surcharge may be avoided where estate/investment income is distributed during the AP in which it arises, or within 18 months of the end of that AP.
Dividend Withholding Tax
Dividend Withholding Tax (“DWT”) returns in respect of all profit distributions, including where an exemption from DWT applies are due by day 14 of the month after the month in which the distribution was made. Electronic returns are due on day 23.
Irish tax law provides that remuneration paid by companies (e.g. directors’ fees) is chargeable to income tax in Ireland under the Pay As You Earn (“PAYE”) system and deduction at source of the Universal Social Charge (“USC”) under the USC system.
A PAYE (P30) return and payment must be filed via ROS by the 23rd day of the month immediately following the month in which the remuneration was paid, i.e. the P30 return due in respect of tax deducted from remuneration paid in May 2013 is due by 23 June 2013. There are arrangements that allow certain employers file P30 returns on a quarterly basis.
VAT & VIES
In most cases VAT returns and VIES returns are due on the 23rd day of the month following the period for which the return relates.
Please note that this commentary does not purport to represent a comprehensive commentary on Irish tax deadlines. Detailed appropriate advice should be taken before any particular transaction is entered into, or a decision is made to refrain from acting.