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Property and corporate tax

  • 31-05-2022 1:14pm
    #1
    SilverNeo
    Registered Users, Registered Users 2 Posts: 1 ✭


    Hi

    Let me start by giving some background to see can anyone answer the question I have.

    I have a property in Ireland I'm renting for around 3000 a month.

    Now if I put this in a company I need to pay 25% in tax instead of 40% + USC + PRSI. (as I have other income not just the property)

    My question is if the company is renting a property aboard in order to do business (Spain for example) can I deduct this from the tax?

    The bellow is an example

    12 X 3000 = 36000 Tax 25%= 9000 (regular tax I would need to pay)

    12 X 3000 - 12 X 1000 (the cost of the rent in the abroad country) = 24000 tax 25% = 6000

    Is this allowed or you cant deduct the abroad cost of the rent for tax purposes?

    Also if you buy a company car or company laptop abroad can you deduct this as well?



Comments

  • #2
    [Deleted User]
    Posts: 5,121 ✭✭✭ [Deleted User]


    I would struggle to see how foreign rent might be relevant.

    Otherwise have you considered close company surcharges?

    If you don't extract the surplus the company pays extra tax.



  • #3
    eusap
    Registered Users, Registered Users 2 Posts: 667 ✭✭✭eusap


    At the end of the day Revenue will look does it make sense, Does a company need to rent a building so they can rent out anther property = absolutely not!, if it was 10+ properties =maybe yes. Company car = no way, Laptop = is reasonable


    Remember in your tax calculation when you take the profit from the company you will pay income tax, unless you leave profit there to reinvest in more property



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