Section 21 The charge to corporation tax and exclusion of income tax and capital gains tax
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(1) Corporation tax shall be charged on the profits of companies at the rate of-
(a) 32 per cent for the financial year 1998,
(b) 28 per cent for the financial year 1999,
(c) 24 per cent for the financial year 2000,
(d) 20 per cent for the financial year 2001,
(e) 16 per cent for the financial year 2002,
(f) 12½ per cent for the financial year 2003 and each subsequent financial year.
Amendments
Subs (1) substituted by Finance Act 1999 section 71(1).
(1A)(a) In this subsection-
"qualifying shipping activities" and "qualifying shipping trade" have the same meanings respectively as in section 407;
(b) Notwithstanding subsection (1), for the financial year 2001 and 2002, in relation to a company carrying on a qualifying shipping trade, profits from qualifying shipping activities carried on in the course of the qualifying shipping trade shall be charged to corporation tax at the rate of 12½ per cent.
[(c) Notwithstanding subsection (1), for the financial year 2002, in relation to a tonnage tax company (within the meaning of Part 24A), tonnage tax profits shall be charged to corporation tax at the rate of 12½ per cent.]1
Amendments
Subs (1A) inserted by Finance Act 2001 section 82(1)(a) as on and from 1 January 2001.
1 Subs (1A)(c) inserted by Finance Act 2002 section 53(3) from 28 March 2003.
What tax rate applies to profits from a qualifying shipping activity?
(1A) You are regarded (see section 407) as operating a qualifying shipping trade if an Irish-owned, Irish-registered, self-propelled ship with gross tonnage of 100 tons or more (a qualifying ship) is used for qualifying shipping activities, i.e., as ...
(2) The provisions of the Income Tax Acts relating to the charge of income tax shall not apply to income of a company (not arising to it in a fiduciary or representative capacity) if-
(a) the company is resident in the State, or
(b) the income is, in the case of a company not so resident, within the chargeable profits of the company as defined for the purposes of corporation tax.
Are companies subject to income tax?
(2) If you are an Irish resident company, you are not liable to income tax on your profits. Nevertheless, you remain obliged to deduct income tax from charges. If you are a non-resident company you are not liable to income tax on your Irish income wh...
(3) Subject to section 649, a company shall not be chargeable to capital gains tax in respect of gains accruing to it so that it is chargeable in respect of them to corporation tax.
