Corporation Tax Act, 1976

In short

This law, the Corporation Tax Act, 1976, establishes a system for taxing companies, replacing previous taxes like income tax and capital gains tax for corporations. It outlines how companies are assessed for tax, what income is taxable, and various reliefs and special rules that apply.

What it regulates

• The general scheme for corporation tax on companies.
• The taxation of companies that are resident in the State versus those that are not.
• Specific rules for calculating income, chargeable gains, and allowable deductions for companies.
• Special provisions for certain types of companies and business activities, such as those involved in exports or operating within Shannon Airport.

Who it concerns

• Companies resident in the State.
• Companies not resident in the State but operating within it.

Key points

• Corporation tax replaces income tax, corporation profits tax, and capital gains tax for companies.
• Irish resident company distributions are not chargeable to corporation tax.
• The Act includes provisions for relief from corporation tax for certain exports and operations within Shannon Airport.
• Special rules apply to "close companies," which are generally companies with a small number of shareholders or controlled by directors.