The Office of the Revenue Commissioners was established by Government Order in 1923 ‘to serve the community by fairly and efficiently collecting taxes and duties and implementing Customs controls.’
The Companies Registration Office is the central repository of public statutory information on Irish companies and business names.
The timeframe for filing a Corporation Tax return is within 9 months of the accounting period/year end but no later than the 23rd of that 9th month.
While the general turnover threshold for the supply of goods is €75,000, persons supplying goods liable at the reduced or standard rates which they have manufactured or produced from zero-rated materials must register if their turnover is €37,500 or more.
While the general turnover threshold for the supply of services is €37,500, for persons supplying both goods and services where 90% or more of the turnover is derived from supplies of goods (other than of the kind referred to in the above paragraph) then the threshold for Goods applies.
A non-EU business supplying electronic services to private consumers in the State is obliged to register and account for VAT irrespective of the level of turnover. However, an optional scheme is available to enable the supplier to register in one EU Member State.
Incorporating a company limited by shares in Ireland usually takes about 2 weeks when allowing for the signatures to be obtained on the relevant documentation. In some cases it can take as little as 5 working days.
Generally speaking, an accountable person may deduct the VAT charged on most goods and services which are used for the purposes of his or her taxable business. There are however some specific items of expenditure for which the VAT thereon is not deductible.
The more common items in this category are expenditure on food and drink, entertainment or accommodation (except with regards to attendance at a qualifying conference).
A valid VAT invoice must include the following information:
- The date of issue of the invoice,
- A sequential number, based on one or more series, which uniquely identifies the invoice,
- The full name, address and the registration number of the person who supplied the goods or services to which the invoice relates,
- The full name and address of the person to whom the goods or services were supplied,
- In the case of a reverse charge (excluding a supply of construction services subject to Relevant Contracts Tax) supply the Value-Added Tax identification number of the person to whom the supply was made and an indication that a reverse charge applies,
- In the case of a supply of goods, other than a reverse charge supply, to a person registered for Value-Added Tax in another Member State, the person’s Value-Added Tax identification number in that Member State and an indication that the invoice relates to an intra-Community supply of goods,
- The quantity and nature of the goods supplied or the extent and nature of the services rendered,
- The date on which the goods or services were supplied or, in the case of early payment prior to the completion of the supply, the date on which the payment on account was made, in so far as that date differs from the date of issue of the invoice,
- In respect of the goods or services supplied: the unit price exclusive of VAT, any discounts or price reductions not included in the unit price, and the consideration exclusive of VAT.
- In respect of the goods or services supplied, other than reverse charge supplies: the consideration exclusive of tax for each rate (including zero-rate) of VAT, and the rate of VAT chargeable.
An employer can reimburse an employee in respect of the cost of the subsistence when an employee performs the duties of his/her employment whilst temporarily away from his/her normal place of work (or is working abroad on a foreign assignment).
These payments can be made free of tax in the amount of €13.71 when away for more than 5 but less than 10 hours, €33.61 when away for more than 10 hours and €108.99 if away overnight.
Where employees use their private cars, motorcycles or bicycles for business purposes, and the employees incur the total cost of such usage (e.g. insurance, tax, running costs, etc.), then the reimbursement in respect of the cost of business use can be made free of tax by the employer.
Where employees use their private car for a business trip, the employer can reimburse 59.07 cents per kilometre up to 6,437kms per calendar year and 28.46 cents per kilometre over that amount. This is based on an engine capacity of 1,501cc and over. A satisfactory recording and internal control system must be operated by the employer.
Income tax is charged on the date that the RSU vests however there is no charge to income tax at the date of the grant of the RSU.
The value of the RSU is chargeable to income tax, USC and PRSI under the PAYE system therefore the employer will process this through payroll.
If the individual decides to sell the shares in the future, Capital Gains Tax will apply on any gain arising. The gain for Capital Gains Tax purposes is the difference between the sales proceeds of the RSU and the value of the RSU at the date of vesting. The current rate for Capital Gains Tax is 33%.