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Corporation Tax (CT) payment and filing

by | Apr 17, 2024 | RMCH Blog | 0 comments

When is preliminary Corporation Tax (CT) due?

Large companies

Large companies can pay their preliminary CT in two instalments when their accounting period is longer than seven months.

The first instalment is due on the 23rd of the sixth month of the accounting period. The amount due is either:

  • 50% of the CT liability for the previous accounting period
  • or
  • 45% of the CT liability for the current accounting period.

The second instalment is due on the 23rd of the eleventh month. This will bring the preliminary tax up to 90% of the final tax due for the current accounting period.

The company must pay 90% of the preliminary tax in one instalment if the accounting period is less than seven months.

Small companies

Small companies must pay their preliminary tax in one instalment if they have a CT liability of less than €200,000 in their previous accounting period. This must be paid 31 days before the end of their accounting period, and before the 23rd of that month.

Payment and filing

A company must use Revenue Online Service (ROS) to file its return and pay any tax due under Mandatory e-Filing.

A company has to:

  • calculate and pay preliminary tax by the specified due date
  • complete and file a CT1 Form and a 46G Form (Company) by the return filing date
  • pay any balance of tax due by the return filing date.

A company must file its return and pay any tax due nine months after the end of the accounting period. The company must make this payment on or before the 23rd of the ninth month. Companies that fail to pay and file electronically must submit their return and pay any associated tax. These companies must pay this tax on or before the 21st of the month.

Interest is due at a daily rate of 0.0219% on late payments or payments that are not made in full. The interest is calculated by multiplying together the:

  • amount of tax a company has underpaid
  • number of days the tax is late
  • and
  • interest rate.

You cannot appeal an interest charge to the Tax Appeals Commission. Once interest has been charged you must pay the full amount outstanding, it cannot be reduced.

If the company sends the return after the deadline they will also have to pay a surcharge of:

  • 5% of the tax due up to a maximum of €12,695 if filed within two months of the filing date
  • or
  • 10% of the tax due up to a maximum of €63,485 if filed more than two months after the filing date.

If the company sends the return after the deadline there will be restrictions on certain reliefs claimed. The restrictions will apply by reference to length of the delay in filling on claims for:

  • excess capital allowance
  • loss relief
  • group relief.

Courtesy https://www.revenue.ie