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Manufacturing Relief Expired

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  • 26-02-2013 10:34am
    #1
    EveT
    Registered Users Posts: 336 ✭✭


    Hi all,

    has this expired? has anyone a link to info on what it is/was?

    Cheers


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    #2
    Marcusm
    Registered Users Posts: 10,186 ✭✭✭✭Marcusm


    "Manufacturing relief" was a relief from corporation tax which was introduced in the 1980s to preempt the expiry of exports sales reliefs and Shannon exemption. It was extended in 88/89 to cover also international financial services (in some locales) and computer services. It gave rise to the reference to a 10% rate of tax although none ever existed. Companies qualifying claimed a reliefagainst tax which was formulaic (e.g. up to 30/40 when the CT rate was 40%) and related to profits from sales of "goods" subject to a maufacturing process in the State (I kid you not, this had to be adapted to cater for insurance and financial companies but without a statutory change).

    Mfg relief was to expire in 2005 for deemed manufacturing activities and 2010 for actual manufacturing activities. THe reduction in the CT rate to 12.5% effectively made its demise less relevant.


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