Revenue Note for Guidance
This section sets out the due dates for the payment of corporation tax by larger companies with “relevant accounting periods”. Preliminary tax is payable by these companies in two instalments. The first instalment is payable within 6 months of the start of the accounting period but no later than day 21 (or day 23 for electronic filers) of the month involved. The second instalment is due 31 days before the end of the accounting period (i.e. normally in month 11 of the accounting period) – but no later than day 21 (or day 23 for electronic filers) of the month involved.
Large companies, other than those with short accounting periods, pay their preliminary tax in two instalments.
The balance of tax payable is due by the specified return date.
Any tax due and payable under an assessment on the company will be due and payable before the specified return date also.
Finance Act 2021 inserted subsection 1A which applies to companies not resident in the State within the charge to corporation tax as a result of the insertion of section 25(2A) Taxes Consolidation Act. The subsection provides that the preliminary tax liability of such company that -
will be due and payable not later than 21 June 2022, or 23 June 2022 where payment of preliminary tax is made by electronic means.
Subject to section 959AT (which deals with the tax payment date of groups) the balance of tax shall be deemed to have been due on the due date for preliminary tax where:
The amounts of preliminary tax which a company must pay in two instalments under this section are:
When looking at whether or not a company met the 45% of current year test for the initial payment, and
then the company will have met their preliminary tax obligations in respect of the initial instalment under this section.
When looking at whether or not a company met the 90% of current year test for the final payment and
then the company will have met their preliminary tax obligations under this section.
The provision allowing for a top-up payment of preliminary tax 6 months after the end of the accounting period to satisfy the 90% preliminary tax rule applies to accounting periods commencing on or after 1 January 2022 and ending on or before 31 December 2027.
Relevant Date: Finance Act 2021