The Minister for Finance has signed the Commencement Order which brings into operation Section 31 of Finance (No. 2) Act 2008. That section provides for a three year exemption from taxation for start up companies commencing to trade during 2009.
Chartered Accountants will be aware that the three year exemption from taxation will apply to profits and gains of a company with a tax liability of less than €40,000 per annum. Marginal relief will apply where the tax liability is between €40,000 and €60,000 per annum.
Among the conditions to be satisfied in order to qualify for exemption:
- The company must be incorporated on or after 14 October 2008
- The company must commence to trade during 2009
- The trade must be a new trade
- Professional services companies cannot qualify for exemption
The relief was legislated for in section 486C of TCA 1997, however it was subject to Ministerial Order. The Order has effect from 15 December 2009.
Notice of the Commencement Order was made in Iris Oifigiúil December 18th, which can be accessed here
S.I. No. 516 of 2009 is available here