The Revenue Commissioners have issued guidelines on the relief which was introduced to encourage new business activity in the traded sector of the Irish economy.

The relief provides a relief from corporation tax in the first 3 years of operation for new companies:

(i) that are incorporated on or after 14 October 2008,

(ii) which commence a qualifying trade in 2009 (or 2010) and

(iii) whose corporation tax liabilities do not exceed specified levels

A qualifying trade does not include:

(i) a trade which was previously carried on by another person or formed part of another person's trade,

(ii) a trade of dealing in or developing land or exploration and extraction of natural resources, or

(iii) a trade consisting of "service company" activities as defined in section 441 of the TCA 1997.  Service companies include close companies whose businesses consist of the carrying on of a profession or the provision of professional services, or of exercising an office or employment.  Service companies also include businesses that provide services to professionals.

If you have any questions please do not hesitate to  contact us.