Corporation tax can be a minefield for business owners, particularly when rules change, deadlines loom, and Revenue scrutiny intensifies. That is why we’ve compiled a list of some of the most commonly asked questions by clients, in an attempt to make life easier for anyone in the thick of it.
At the helm to answer is Fitzgerald Power Tax Partner, Brian Kelly. With over 20 years of experience, Brian’s bread and butter is advising clients on Irish and international tax matters, business and investment structuring in a tax-efficient manner, minimising tax exposures on transactions, and establishing structures with future succession planning in mind.
Whether you’re a startup founder, a seasoned CFO, or somewhere in between, Brian is here to help you stay compliant, avoid costly mistakes, and make smarter tax decisions. Now, let’s get started.
Q1: When is my corporation tax return due?
A: For most Irish companies, the corporation tax return (Form CT1) is due nine months after the end of the accounting period, but no later than the 23rd day of that month if filing and paying online. For example, if your year-end is 31 December, your return is due by 23 September of the following year.
Q2: What are the penalties for late filing?
A: Late filing can trigger:
– A surcharge of 5% (up to €12,695) if filed within two months of the deadline.
– A 10% surcharge (up to €63,485) if filed later than two months.
– Loss of certain reliefs, such as R&D tax credits or loss carrybacks.
Q3: Can I reduce my corporation tax bill?
A: Yes – through legitimate reliefs and planning. Some common strategies include:
– Capital allowances on qualifying assets.
– R&D tax credits (30% of qualifying expenditure).
– Loss relief (carrying forward or back trading losses).
– Group relief for companies in the same group structure.
Q4: What triggers a Revenue audit?
A: Revenue may select your company for audit based on:
– Late or inconsistent filings.
– Large or unusual claims (e.g. R&D credits).
– Industry-specific risk factors.
– Random selection.
Q5: What’s the difference between preliminary tax and final tax?
A: Preliminary tax is an estimate of your corporation tax liability, due one month before your year-end (but no later than the 23rd of that month). A large company may also have a preliminary tax liability due six months before the year end (also no later than the 23rd of the month). Final tax is the actual liability calculated in your CT1 return. If your preliminary tax was underpaid, interest may apply.
Q6: And finally, do I need to file if my company made no profit?
A: Yes. Even if your company made a loss or was dormant, you are still required to file a CT1 return unless Revenue has formally removed your obligation.
Got a question we didn’t cover? We’d love to hear from you. Drop us a line or book a consultation with one of our Fitzgerald Power tax specialists. We’re here to make corporation tax compliance less stressful, more strategic and something you don’t dread every year. Get in touch with our tax team today!
