Trading Company Discount

Da11

Hey everyone,

I have a question - when is the company considered a trading company?

I.E. if the company's most income comes from rents(passive income) , and only very small amount comes from other services ( trading income) is the company considered a trading company?

I am just asking because trading company's closed company surcharge is smaller.

Stratvs

https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-13/13-02-05.pdf

Bottom of page 5. Definition of "Trading Company". Document also has examples.

Da11

Stratvs wrote: »

https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-13/13-02-05.pdf

Bottom of page 5. Definition of "Trading Company". Document also has examples.

Thank you! I actually read this document and thought that word 'mainly' is very vague.. :

The term “trading company” means any company which exists wholly or mainly for the purpose of carrying on a trade, and any other company whose income does not consist wholly or mainly of investment or estate income.

But I guess small amount of trading income does not make company a trading company.