Finance Minister, Paschal Donohoe has revealed that the Irish government anticipates operating a greater budget surplus than anticipated in 2020 due to a recent surge in corporation tax receipts.
Mr Donohoe confirmed the government was on track to run a budget surplus of 0.4% of gross domestic product (GDP) with corporation tax receipts forecast to hit €11bn by the end of the year.
The government’s finance department had anticipated a fall in corporation tax receipts in 2019, but instead have been 16% ahead of target following November, which is a busy period when almost a quarter of all corporate tax returns are submitted.
Corporation tax receipts are also due to rise further still in 2020 before flatlining and declining once new prospective global rules on how and where the biggest online companies pay tax are finalised.
Nevertheless, the budget surplus is certainly a step in the right direction for the Finance Minister, who is determined to deliver a surplus of 1% of GDP or more by 2022, whilst reducing the national debt to 85% of income by 2025.
Is your company liable for corporation tax?
If your business is registered with the Revenue Commissioners, the chances are you are liable for paying corporation tax.
This means that you must accurately determine your company’s profit for each tax year in order to calculate how much corporation tax is payable on your income.
All of the above data must be submitted to the Revenue Commissioners periodically via corporation tax returns. Your accounts and tax calculations should also be filed in support of your return.
It’s important not to bury your head in the sand about your tax reporting obligations as a growing company. There are strict late filing penalties and interest is charged on overdue tax payments.
Fortunately, our nationwide network of TaxAssist Accountants is on-hand to assist with the preparation of your company accounts, tax computations and the submission of subsequent corporation tax returns ahead of the deadline.
We’ll even offer professional advice on your tax planning to try and benefit you and your business.
For a free initial consultation on your corporation tax obligations, call our friendly, experienced team today using our online enquiry form.