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Tax Exemption for Start Up Companies in Ireland


The Minister for Finance announced in his 2010 Budget, that the three-year corporate and capital gains tax exemption for new start-up companies in 2009 would be extended to new start up companies in 2010 as well.

The new initiative was extended to 2010 in recognition of the current economic conditions and the availability of liquidity, thereby assisting these start-up companies in conserving their cash.

The extension of the relief to 2010 means that new start-up companies which commence to trade in 2010 will be exempt from both corporation tax on trading income and on capital gains on the disposal of trade related assets in the first three years in which the trade is carried on. The tax exemption applies to companies where the corporation tax does not exceed EUR40,000 per year and marginal relief applies where corporation tax payable is between EUR40,000 and EUR60,000.

The relief will not apply to trades dealing in development land, working materials and petroleum activities, trades previously carried on by another person and to which the company has succeeded or companies carrying on certain professional service trades.

Taxand's Take

This new exemption may be of interest to international companies who are considering or intending to enter the Irish market. Taxand recommends start-up companies seek expert advice to take advantage of the tax exemption available.

Your Taxand contacts for further queries are:
Brian Duffy
T. +353 639 51 57

Conor Bradbury
T. +353 639 52 15

Taxand's Take Author