835P Corresponding corporation tax in the State

Summary

This section sets out the rules regarding the applicable tax rates to the corresponding chargeable profits in the State.

Details

The corresponding corporation tax in the State is the sum of:

• the corporation tax that would be charged at the trading rate on profits that would be considered to fall under Schedule D, Case I or II;
• the corporation tax that would be charged at the passive income tax rate on profits that would be considered to fall under Schedule D, Case III, IV or V; and
• the capital gains tax rate which would be charged on that part of the corresponding chargeable profits in the State that comprise chargeable gains.

The assumption at section 835O(1)(d) that there is no change in the place or places at which the company carries on its activities is dis-applied in determining what Case under Schedule D would apply. An assumption is to be made that the activities carried on by the CFC in its territory of residence were carried on in the State as otherwise the income would be taxable as a foreign trade.

Relevant Date: Finance Act 2021