Registering for tax in Ireland
If you are setting up a Limited Company in Ireland, you will need to register for tax. In fact, you may have to register for 3 or 4 different kinds of taxes or levies.
If you are a Sole Trader, you will also need to register for tax, but the tax registration required may not be the same as for a Limited company. It may be helpful to also see our example tax calculation for a Limited company compared to one for a Sole Trader.
The tax you pay will depend on the size and type of your business and what sector you belong to, this may mean your tax registration will involve different steps.
Here are the 4 main taxes for businesses and how to register:
1. Corporation tax
There are two rates you can pay for Corporation Tax; 12.5% and 25%. Only Irish Limited Companies need to pay Corporation Tax – this tax doesn’t apply to Sole Traders.
The lower rate of 12.5% is available to companies that are centrally managed and controlled from Ireland. If the company is centrally managed and controlled from outside of Ireland the Corporation Tax Rate will be 25%.
How to register for Corporation tax
To register for Corporation Tax you will need to fill out TR2 form. Corporation Tax is only applicable to Limited Companies.
2. Value Added Tax (VAT)
You will need to register for VAT once you reach the VAT Threshold, €37,500 for services and €75,000 for goods. The rates of VAT are dependant on what service or goods your business provides.
How to register for VAT
You can register for VAT using a TR2 form.
It’s very common for Revenue to ask for proof that you require a VAT number when registering for this tax. It’s important to show evidence of trade in Ireland to be eligible for a VAT number.
3. Employer Pay As You Earn Tax (PAYE)
If your company or business has employees, you will need to register your business as an employer. Once you are registered as an employer, you business is liable to pay PAYE (Pay As You Earn).
How to register for PAYE
If you are registered for ROS you can register for PAYE online.
There has been recent changes to the payroll requirements in Ireland that are worth noting if you want to hire employees.
4. Relevant Contract Tax (RCT)
Relevant Contracts Tax applies where a principal contractor is paying a sub-contractor for carrying out or supplying labour in relevant sectors such as construction, forestry, and the meat processing industry. As a principal contractor, you need to file the contract on the Revenue system.
How to register for RCT
You can register for Relevant Corporation Tax using a TR2 Form.
Preliminary tax & self assesment for Sole Traders
Sole Traders in Ireland need to register for Income Tax. You will need to file a self-assessment for the previous year of business. Self-assessment filings are due on October 31st each year. But, these filings are for the previous year. So, if you set up as a Sole Trader in March 2018, you will not need to file self-assessment for October 2018.
You will also need to pay preliminary tax for the current year in October. Preliminary tax is the estimate of your Income Tax, PRSI and USC that you expect to pay for a tax year.
To make an Income Tax Return you will need to complete a Form 11.
Tax registration for new Irish Limited Companies
Are you a newly registered Limited Company in search of Tax Registration? We have a unique Startup Offer for accountancy services for new Limited Companies for just €109 per month + VAT.
We can advise you as to when to register for Tax and liaise with Revenue on your behalf during the application process.
Check out our Startup Offer for a full list of services provided.