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Taxes Consolidation Act, 1997 (Number 39 of 1997)

CHAPTER 2

Corporation tax

21 The charge to corporation tax and exclusion of income tax and capital gains tax.

[CTA76 s1(1), (2) and (3); FA97 s59(1)]

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(1) Corporation tax shall be charged on the profits of companies at the rate of—

(a) 38 per cent for—

(i) the financial year 1996, and

(ii) that part of the financial year 1997 beginning on the 1st day of January, 1997, and ending on the 31st day of [1]>March, 1997, and<[1][1]>March, 1997,<[1]

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(b) 36 per cent for—

(i) that part of the financial year 1997 beginning on the 1st day of April, 1997, and ending on the 31st day of December, 1997, and

(ii) each subsequent financial year.

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(b) 36 per cent for that part of the financial year 1997 beginning on the 1st day of April, 1997, and ending on the 31st day of December, 1997, and

(c) 32 per cent for the financial year 1998 and each subsequent financial year.

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(1) Corporation tax shall be charged on the profits of companies at the rate of—

(a) 32 per cent for the financial year 1998,

(b) 28 per cent for the financial year 1999,

(c) 24 per cent for the financial year 2000,

(d) 20 per cent for the financial year 2001,

(e) 16 per cent for the financial year 2002,

(f) 12½ per cent for the financial year 2003 and each subsequent financial year.

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(1A) (a) In this subsection—

qualifying shipping activities” and “qualifying shipping trade” have the same meanings respectively as in section 407;

(b) Notwithstanding subsection (1), for the financial year 2001 and 2002, in relation to a company carrying on a qualifying shipping trade, profits from qualifying shipping activities carried on in the course of the qualifying shipping trade shall be charged to corporation tax at the rate of 12½ per cent.

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(c) Notwithstanding subsection (1), for the financial year 2002, in relation to a tonnage tax company (within the meaning of Part 24A), tonnage tax profits shall be charged to corporation tax at the rate of 12½ per cent.

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(2) The provisions of the Income Tax Acts relating to the charge of income tax shall not apply to income of a company (not arising to it in a fiduciary or representative capacity) if—

(a) the company is resident in the State, or

(b) the income is, in the case of a company not so resident, within the chargeable profits of the company as defined for the purposes of corporation tax.

(3) Subject to section 649, a company shall not be chargeable to capital gains tax in respect of gains accruing to it so that it is chargeable in respect of them to corporation tax.

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Substituted by FA98 s55(1)(a).

[2]

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Substituted by FA98 s55(1)(b). Shall have effect for the purpose of supplementing this section.

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Substituted by FA99 s71(1). Shall have effect for the purposes of supplementing this section.

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Inserted by FA01 s82(1)(a). This section applies as on and from 1 January 2001.

[5]

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Inserted by FA02 s53(3). Per FA03 s62(2) comes into operation on and from the date of passing of Finance Act 2003; 28 March 2003.