1. Corporation Tax Case I/II Income
Rules are similar to the rules for income tax
Profits must be adjusted for tax purposes
Start with the accounting net profit in the Income Statement
Profit before tax and before dividends paid
This figure is then adjust for other income and disallowed expenses

2. Corporation Tax Case I/II Income
Expenses included in account but not allowed for tax purposes are added back
Any income that isn’t trading income is deducted

3. Corporation Tax Case I/II Income – Capital Expenditure
No capital expenditure can be deducted to calculate profit
Depreciation of capital assets added back
Appreciation or depreciation of goodwill removed
Profits or losses on disposal of non-current assets removed

4. Corporation Tax Case I/II Income – Capital Expenditure
Capital items included in the repair and renewal expense account added back
Capital assets purchased not allowed
Professional fees on the purchase and sale of capital assets not allowed

5. Corporation Tax
Case I/II Income – Wholly and exclusively for the purposes of the trade
Expenses relating to other sources of income added back
Director’s salaries
No add-back
Subject to PAYE
Includes expenses paid on behalf of director, which is a BIK subject to PAYE

6. Corporation Tax Case I/II Income – Statutory adjustments
Motor related fines are added back
Motor lease restriction applies
No amounts related to General Provisions are allowed
Political donations are not allowed.
Charitable donations above €250 are allowed.

7. Corporation Tax Case I/II Income – Statutory adjustments
Subscriptions for staff are allowed and may be subject to PAYE as BIKs
Patent royalties are added back and included in the CT comp as a charge against income on a paid basis
Pension contributions allowed to the extent that they are paid. Closing accruals are added back.
Interest and penalties on late payment of tax are not allowed.

8. Corporation Tax Dividends
Dividends are a distribution of after tax profit.
Dividends are not a deductible expense in arriving at taxable profit.
If profit after dividends is taken as starting point dividends must be added back
If profit before dividends is taken as starting point, no adjustment is required.

9. Corporation Tax Capital Allowances
Capital allowances calculated by reference to the accounting period
Opening TWDV will be first day of accounting period
Closing TWDV will be the last day of the accounting period
Capital allowances will be given in relation to assets in use on last day of accounting period

10. Corporation Tax Capital Allowances
Capital allowances treated as a deductible trading expense for CT purposes in arriving at Case I/II income
Otherwise, rules are similar to income tax
Rate of 12.5%
Amount of capital allowances will depend on length of accounting period
Calculated on cost less grants

11. Corporation Tax Capital Allowances
Otherwise, rules are similar to income tax
Full capital allowances given in year of purchase
No capital allowances in year of disposal
The cost for calculating capital allowances for a motor vehicle are restricted

12. Corporation Tax Capital Allowances
Otherwise, rules are similar to income tax
Full capital allowances given in year of purchase
No capital allowances in year of disposal
The cost for calculating capital allowances for a motor vehicle are restricted