Tax Exemption for startups

honeymonster

I work as a web developer for an accounting firm. They asked me to upload an article one of their accountants had written. It was about the tax exemption for startups. New firms dont have to pay tax once their liability is under €40,000.

I was talking about this with one of my friends, he runs a small company. Does anyone know is there anything stopping existing companies shutting down and starting again and claiming the exmeption?

I've no specific answer for you, but I would be amazed if Revenue aren't covered against this.

Even if they weren't, 'shutting down and starting again' a ltd company would be very time consuming and costly in its own right. Possibly so much as to outweigh the tax benefits!

dbran

The legislation for this exemption is not yet been signed into law by the minister.
But there is specific legislation that states that it must be a new buisiness and not one that is just a restart of an old or existing one. The company itself dosent have to be new but the trade must be new.

thecleverone

The legislation for this exemption is not yet been signed into law by the minister.

Which is annoying considering it was announced back in September! Any idea when it should be signed in?

rabbit Stew

They have covered their arses alright.
I pulled this off the net
http://www.byrnemccall.ie/byrnemccall/Main/TaxExemptionforStartUpCompanies.htm
It states "- The trade must be a new trade and must not have been carried on previously by another person in the State."
It's vague enough for them to be able to call it however they want (as usual)

Mickk

thecleverone wrote: »

Which is annoying considering it was announced back in September! Any idea when it should be signed in?

It doesn't really matter because if you incorporated after oct 2008 your first tax return isn't due till Oct 2010.