Corporation Tax Other income Case III, IV, V, and chargeable gains The amounts taxable are based on the accounting period of the company, tax year does not apply While trading income is apportioned on a time basis, other sources of income are computed on an actual basis

Corporation Tax Other income So, when there is an accounting period longer than 12 months, which is split for tax purposes into a 12 month period and the remainder, tax on other sources of income will be calculated by what is actually received/earned in each period

Corporation Tax Case III Income Any source of foreign income taxed under Case III Interest received gross of DIRT taxed under Case III Irish company entitled to receive interest gross upon application to the financial institution All Case III income is fully taxable at 25% including deposit interest received gross

Corporation Tax Case IV Income If a company does not make an application for interest to be paid gross, the interest will be subject to DIRT and then taxed under Case IV. In this scenario: The gross amount is included in the CT computation Tax is calculated at 25% The DIRT paid is deducted in the CT computation DIRT can be refunded if it exceeds the CT liability

Corporation Tax Case V Income Rental income from Irish properties is taxed under Case V. The calculations of income and expenses are the same as for income tax. Rental income includes: Rents from premises or land in the State Receipts in respect of an easement in the State Certain premiums received for the granting of a lease

Corporation Tax Case V Income Foreign rents are taxable under Case III, with the same deductions allowed Rental expenses include the following: Ground rent Rates Maintenance Insurance

Corporation Tax Case V Income Rental expenses include the following: Repairs Services provided/ paid for by landlord Accountancy fees Mortgage Interest Each property should be dealt with separately and a computation prepared for each

Corporation Tax Case V Income Capital allowances are available on expenditure incurred on fixtures and fittings 12.5% per 12 month accounting period on a straight line basis Offset against Case V income before any losses are applied

Corporation Tax Company Chargeable Gains Individual’s are subject to CGT on chargeable gains, companies pay corporation tax on their chargeable gains The accounting profit or loss should be added back or deducted when calculating the tax adjusted profit The capital gain or loss is calculated on the disposal using the normal CGT rules.

Corporation Tax Company Chargeable Gains A company, however, is not entitled to the annual exemption (€1,270) The chargeable gain is adjusted as follows: Capital gain x rate of CGT/12.5% = chargeable gain Amount of chargeable gain is included in the CT computation and taxed at 12.5% Results in the company paying the same amount as it would under the CGT rules.