In Ireland, everyone running a business must make Tax Registration with Revenue (The Office of the Revenue Commissioners).

That’s not just about building a trustworthy and legitimate corporate image towards clients and partners. It’s rather an imperative the failure to comply with which entails penalties of up to €4.000. Any business activity without proper tax registration is illegal.

Entrust registration at the Revenue to Chern & Co, as this is the field where our expert team excels.

Who is this for?

This service is the best decision for those entrepreneurs who are just at the very beginning. Accordingly, for those, who are unsure what type of tax they should register for and how to do that in full accordance with all the requirements.

Options

The tax system of Ireland is quite complex with different types of taxes for businesses.  Whether gaining a status of a sole trader or setting up a company, you should register for relevant tax. The choice depends on the type of commercial activity you are going to conduct, type of incorporation and some other factors.

And rest assured, Chern & Co as your tax agent will provide you with comprehensive consultation concerning all issues of your interest. Moreover, we will even do the whole procedure with Tax Registration on your behalf if so agreed.

In the meantime, please have a look at the Tax Registration options we offer.

Corporation Tax

Registration for Corporation Tax is a must-have for a new company. Since it entails the attribution of a Tax Registration Number (TRN) and enables further normal business activity.

Resident companies of Ireland are taxable for CT on their worldwide profits, which includes both income and capital gains. Companies not-residents of Ireland must pay CT only when having profit with their Irish branches.

For most companies the standard rate on income (“trading rate”) of 12,5% (the most favourable in the whole EEA!) is applicable.

There is also a higher rate on income (“passive rate”) of 25%, which applies to the non-trading income of a company. Usually also applicable to income from land dealing, mining, and petroleum extraction operations. The rate in the latter case may range from 25% to 40% depending on the profit.

The capital gains rate of 33% is also worth mentioning.

Read more on our website and check out an overview by Revenue.

Employer Pay As You Earn (PAYE)

In short, PAYE is a tax that gets charged from people’s wages every time they get paid. Employers are responsible for their employee tax deductions. That is why this tax is better known as Employers Tax. Everyone except the self-employed must pay the PAYE tax.

The Revenue warns that you must register as an employer for PAYE if you have an employee, whom you pay more than:

• €8 per week (or €36 per month) for full time,
• €2 per week (or €9 per month) for part-time.

You must NOT apply for PAYE registration with Revenue in Ireland if you have a domestic employee. And you:

• pay them less than €40 per week,
• only have one such employee.

Read more on our website and check out an overview by Revenue.

Relevant Contracts Tax (RCT)

Relevant Contracts Tax (RCT) is a withholding tax mechanism applicable to certain payments made by principal contractors to subcontractors. Mainly used in the construction, forestry, and meat processing sectors of the economy. According to Revenue, the established tax rates are 0%, 20% and 35%.

You may need this tax registration for your company depending on the types of commercial activity it will conduct.

Read more on our website and check out an overview by Revenue.

Please note: If you want to register a company for Corporation Tax, Employer Tax (PAYE) and Relevant Contracts Tax (RCT) at once, there is such an option. 3 in 1 Registration costs 150€, the same as CT Registration alone! When ordered separately it may cost up to 350€.

If you are not sure whether you need Registration for Employer Tax (PAYE) and Relevant Contracts Tax (RCT) please contact us.

Self-Employed / Income Tax for Sole Trader

You may need to register for this tax if you, for example: 

• are a freelancer,
• receive income from non-Pay As You Earn (PAYE) sources, such as:
  • rental income,
  • investment income,
  • foreign income including foreign pensions,
  • maintenance payments,
• have profited from share options or share incentives,
• are a director of an Irish company, etc.

Read more on our website and check out an overview by Revenue.

Value Added Tax (VAT)

VAT or Value Added Tax in the EU is generally adopted consumption tax assessed on the added value of all goods and services. Once you register for VAT in Ireland, you must charge VAT on products and services you sell.

The current standard Vat rate in Ireland is 23%.

The procedure of registering a company for VAT is probably the most tricky and difficult one. Indeed, it usually entails tons of documents to be prepared and even more supportive documents to be attached to the application. VAT registration normally takes considerable time and requires the special professionalism of a tax agent.

Please note: There are many subtleties and exceptions for each type of tax that we cannot cover with this short overview. The issue of whether you need registration for this or that tax or not becomes clear during prior consultation and only after considering all the factors.

Read more on our website and check out an overview by Revenue.

What is the Procedure of Tax Registration?

For Companies

To register your company for tax, you should first obtain a CRO number. The Companies Registration Office (CRO) attributes it to a company when incorporated.

Then, according to Revenue, the tax agent representing your company, if you have one, must apply through Revenue Online Service (ROS) on your behalf.

If your company does not have a tax agent, you should submit a Form TR2 for Irish resident companies or Form TR2 (FT) for foreign companies manually on your own.

You may also use these forms for registration for Corporation Tax (CT), Employer Pay As You Earn (PAYE), Value-Added Tax (VAT), Relevant Contracts Tax (RCT).

When completed and successfully processed by Revenue, the registration procedure is over.

For Sole Traders

Firstly, you should get your PPSN (Personal Public Service Number). To this end, in Ireland, both Irish citizens and non-residents should contact the Department of Social Protection.

Resident sole traders of Ireland can make their tax registration online via Revenue’s eRegistration service.

Non-residents of Ireland should complete a special Form TR1 (FT) to register for Revenue as sole traders.

After all, your TRN (Tax Registration Number) will be the same as PPSN.

How is the Service delivered?

1. You contact us any way available. We will answer all your questions and concerns at no extra cost.
2. Depending on your needs and desires we agree on the best option for your business.
3. We are preparing an invoice for payment and a service contract. We do not charge you any extra hidden fees or commissions. All governmental fees are already included in our price. You are to pay the exact quoted price.
4. After we receive the payment, we send you a list of documents we need for our further work. We will provide you with detailed and comprehensive instructions to this end.
5. We prepare all the tax documents in a timely way and transmit them to you for consideration and signing.
6. Finally, it is ready for submission to Revenue.
7. When successfully processed by the Revenue the whole procedure is over!

Conducting bureaucratic formalities in Ireland has never been easier with Chern & Co. If there are any questions left, please do not hesitate to contact us. Our team will provide you with any extra information.

Disclaimer: This content of this page is for acquainting purposes only and is subject to change. It does not constitute any professional advice. No liability is accepted by Chern & Co for any actions taken or not taken in reliance on the information set out in this article. Professional, legal or tax advice should be obtained before taking or refraining from any action.