A start-up trading company can get a three year exemption which reduces its corporation tax charge (up to €40,000 per annum) to nil.
There is marginal relief if the charge is between €40,000 and €60,000. In theory, this means a start-up company can earn annual net profits of €320,000 (€40,000 divided by 12.5%) and pay no tax.
However, the relief is linked to the amount of employer’s PRSI paid by the claimant company, subject to a maximum of €5,000 per employee, and an overall limit of €40,000. The relief does not apply to trades carried on by associated companies.
This relief expires on 31.12.2021 (s486C)