Taxes Consolidation Act 1997 section 21A

Higher rate of corporation tax

Section 21A provides that certain profits of companies are subject to a higher rate of corporation tax of 25%, rather than the standard 12.5% rate, for the financial year 2000 and subsequent financial years.

• Income chargeable under Case III (e.g. untaxed interest, foreign income), Case IV (e.g. royalties, miscellaneous income) and Case V (rental income from Irish land and buildings) of Schedule D is taxed at 25%.
• Profits from excepted trades — dealing in or developing land (excluding construction operations and disposals of qualifying land), mining activities, and petroleum activities — are also taxed at 25%.
• Where a trade consists partly of excepted operations and partly of other operations, the two parts are treated as separate trades and income and expenses are apportioned on a just and reasonable basis.
• The 25% rate does not apply to profits from non-life insurance, reinsurance, or life business income attributable to shareholders, nor to foreign dividends chargeable at the 12.5% rate under section 21B.