Processing invoices, updating bank reconcilations, posting journals, drafting accounts are all specialist and time consuming work. Good books are the foundation of financial planning and forecasting. Ongoing Management accounts are required to monitor the progress of the business day to day, and for decison making. Financial statements will be required for loans, investors, shareholders and tax returns. We offer very competitive rates for this service, and can maintain your accounts year on year, with monthly reporting delivered throughout.
Financial Statements
Preparing financial statements or audited accounts is a service we provide to many clients. Our key focus is meeting statutory obligations. We will provide you with accounts and present them in a meaningful way, that represents the financial position of your business.
Business Tax & Accounts
Businesses need a broad range of advice on financial supports, government assistance, banking, budgeting, cash flows, business plans, legal, tax and accountancy.
TaxTalk can provide the day to day management of your company finances, while you focus on your core business. We provide key financial information on your highest income earners and cost drivers so that you can make decisions on how to improve your company finances.
We set up an accounts management bookkeeping system from scratch or we can use your existing software package, whether you are a new or existing company or sole trade.
Your books and records will be maintained to a standard that is acceptable to the Irish Revenue commissioners, Companies Registration office and accountancy bodies. A business needs to have its accounts ready for its stakeholders such as potential investors, raising finance, insurance companies and in the event of a review from the Revenue commissioners.
Corporation Tax in Ireland
Corporate Tax Rates
Ireland’s 12.5% corporate tax rate on trading income is one of the lowest ‘onshore’ rates in the world. ‘Trading profits’ include a broad range of commercial activities including Intellectual Property (IP) and Supply Chain Management. The Irish Government is committed to retaining the 12.5% corporate tax rate on trading income until at least 2025. A tax rate of 25% applies to non-trading income (passive income) such as investment income, foreign dividends, rental income, net profits from foreign trades, and income from certain land dealings and oil, gas and mineral exploitations.
The Irish Corporate Tax System
A company’s liability to corporation tax in Ireland depends on its residency. Irish resident companies are liable to corporation tax on all their worldwide income and capital gains. A company is considered to be tax resident in Ireland if its central management and control are located in the State. The location where major policy decisions of a company are taken is often where the company’s central management and control are situated. Companies not resident in Ireland but with an Irish branch are liable to corporation tax on (i) profits connected with the business of that branch and (ii) any capital gains from the disposal of assets used for the purposes of the branch in the State.
Companies not resident in Ireland and who do not have any Irish branch are liable to (i) income tax on any Irish-sourced income and (ii) capital gains tax on gains from the disposal of specified Irish assets.
Calculating Tax Liability
In Ireland, companies are liable to corporation tax on their total profits, including trading income, passive income and capital gains. Subject to tax free deductions, tax reliefs and credits, of which there are many.
- Irish resident company is liable to corporation tax on worldwide income
- Irish branch or agency is liable to corporation tax on Irish branch income
- Non Irish resident with no branch is liable to Irish tax on Irish source income https://www.taxtalk.ie/tax-rates-in-ireland
Income Tax
If money didnt exist maybe we would all be carefree and live different lives. However the reality is that we all work very hard for our income and we contribute to society by doing so, paying tax is one of the ways that we contribute to our society.
TalkTalk can prepare, file and advise on income tax matters for all types of situations. Employees, self employed, retired, married, divorced, widowed, non residents, non domiciled, expats returning home are just some of the income tax clients that we advise. It is worthwhile looking at your situtaion will in advance of the income tax filing date, so that you can spread the cost of your income tax bill and maybe claim any refunds before you pay tax.
TaxTalk can advise you on the tax impact of any life event and assist you in minimising your income tax liabilities, whilst keeping you tax compliant at all times.
Payroll
Hiring and replacing, rewarding and incentivising employees all require payroll work. A reliable payroll system is paramount for a motivated workforce. In our experience it is best to appoint one controller over the payroll process, so that everything is streamlined on equal terms. We can source payroll personnel for your company, or you can outsource the function to us. We can provide standard employee contracts, register new employees for payroll tax, run monthly payslips, and yearly payroll returns. Our service aims to react quickly to changes in employee circumstances, so that employers can make decisions without spending time processing payroll.
VAT in Ireland
VAT stands for VALUE ADDED TAX and it is due on every exchange made within the production and distribution chain. VAT applies to the supply of goods and services and rules vary depending on where the place of supply is and if your customer is VAT registered or not. There are 6 rate categories of VAT in Ireland, 21%, 13.50%, 9%, 0% and exempt, and outside the scope of VAT. It is important to establish which rate of VAT applies to your good or service because you are responsible for collecting the correct amount of VAT as the supplier. All businesses in Ireland are obliged to register for VAT in Ireland if their annual turnover exceeds certain limits in a 12 month period:
- €37,500 in the case of persons supplying services only
- €75,000 for persons supplying goods
- €35,000 for taxable persons making mail-order or distance sales into the State
- €41,000 for persons making acquisitions from other European Union Member States.
- €75,000 for persons supplying both goods and services where 90% or more of the turnover is from the supplies of goods. However, while all goods and services are part of the turnover, the 90% does not necessarily include all goods sold.
The 90% figure does not include goods which you: sold at the standard or reduced rates and manufactured or produced from zero rated materials.
- A person, while not established in the state, needs to register and account for VAT if that person supplies: taxable goods to ‘taxable customers’ in the State or services to ‘taxable customers’ in the State. This applies irrespective of the level of turnover.
How to account for VAT?
You can account for VAT on the Invoice or Cash receipts basis. Invoice basis of VAT, ensures that you include VAT on all invoices issued and received based on the date of the invoice. You are obliged to pay the sales VAT on your invoice regardless of whether you have been paid. The Cash receipts basis of VAT allows you to only pay sales VAT once you have been paid by your customer. You may apply to account for Value-Added Tax (VAT) in this way if you meet one of these conditions: A VAT-registered person whose turnover does not exceed or is not likely to exceed €2,000,000 in any continuous period of 12 months. A VAT-registered person whose supplies are almost exclusively (at least 90%) made to customers who are not registered for VAT, or not entitled to claim a full deduction of VAT. You may apply to account for Value-Added Tax (VAT) in this way if you meet one of these conditions:
- A VAT-registered person whose turnover does not exceed or is not likely to exceed €2 million in any continuous period of 12 months.
- A VAT-registered person whose supplies are almost exclusively (at least 90%) made to customers who are not registered for VAT, or not entitled to claim a full deduction of VAT.
Businesses can recover VAT relating to their business expenses, subject to some exceptions such a food, petrol, accommodation. The rate of VAT recovery depends on the level of taxable supplies you make and your rate of VAT.
Cross Border Trade
There is a common set of rules for VAT set out in EU law but each country can adapt these to its own needs. EU Countries can apply their own VAT rates above a minimum threshold to different groups of goods and services, this causes distortion of competition between different member states, so rules have evolved to harmonise VAT, so that inter-country trade is on a level playing field.
The current EU model for paying VAT on cross-border activities is that VAT arises on the good or service in the country where it is consumed. Goods or services purchased and consumed in Irelandwould be subject to Irish VAT rates and likewise in other countries.
The VAT impact of intra-Community supplies of goods and services can become complicated when supplies are warehoused, transported, processed, installed or assembled, bought and resold between various member states, as each tax point becomes difficult to identify in a moving maze of transactions. EU VAT law simplification measures have not proved sufficient to cope with the practical VAT complexities of EU trading. By their very nature, cross border transactions expose a business to VAT in multiple jurisdictions. Since typically the rules are somewhat different on a per country basis, cross border transactions may trigger complex compliance obligations for businesses. Moreover, in absence of proper VAT planning for international activities, serious risks may arise in terms of cash flow costs, and forfeitment of VAT incurred on business procurement. Moreover, the VAT itself may become a direct business cost as the result of mistakes and omissions. Many issues need careful consideration when a business is involved in cross-border trade. Such as the qualification of the supply; tax jurisdiction; registration; applicable rate; administrative, bookkeeping and statistical information requirements; cash flow costs reduction; and deferment opportunities to mention a few.
Dividend Income
Although foreign dividend income is liable to tax in Ireland it is possible to gain relief so that no further Irish tax will apply. Companies may gain tax relief through:
1. Foreign tax credit pooling;
2. EU Parent Subsidiary Directive;
3. Double taxation agreements.
Dividends paid by a company located in the EU or in a country with which Ireland has a double tax agreement (including agreements which are signed but not yet ratified) are liable to corporation tax at the 12.5% rate provided the dividend is paid out of ‘trading profits’.
If part of the dividend is paid from non trading profits and part from trading profits, the non trading balance will be taxed at the 25% rate. However, in accordance with EU legislation, Ireland follows the ‘de-minimis rule’, which states that under certain conditions the whole of dividends are to be taxed at 12.5%, regardless of whether a portion is derived from non trading profits.
Tax Credit Pooling
‘Onshore Pooling’ allows foreign dividends to be pooled together, before they are offset against the Irish tax liability. However, excess tax on foreign dividends liable at a rate of 12.5% cannot be used against those liable at the 25% rate. The tax credits do not need to be utilised in the year in which the dividend is received. They can be carried forward indefinitely or offset against Irish tax on future foreign dividends.
The De–MinimIs Rule
In order to satisfy this rule, 75% or or more of the dividends must consist of trading profits from the paying company or from dividends received by it from trading profits of lower tier companies resident in the EU or in a tax agreement country. In addition, the aggregate value of trading assets of the dividend recipient company and of its subsidiaries must be greater than 75% of the aggregate value of all their assets (within the accounting period in which dividend is received).
EU Parent Subsidiary Directive
The European Union Directive requires that Member States eliminate double taxation of dividends received by a parent company located in one Member State from its subsidiary located in another.
At present, since a subsidiary company is taxed on the profits out of which it pays dividends, the Member State of the parent company must either:
1. Exempt profits distributed by the subsidiary from any taxation; or,
2. Grant a credit against its own tax in relation to the tax already paid in the
Member State of the parent subsidiary.
Foreign Tax Credits
Irish tax resident companies are liable to pay Irish corporate tax on their worldwide income. A foreign branch of such a company is simultaneously liable to both foreign and Irish tax. In order to eliminate double taxation, Ireland offers a pooling provision which enables companies offset the foreign tax as a credit against the Irish corporation tax liability. The extent of the credit depends on the nature of the profits, and hence whether they are taxed in Ireland at 12.5% or 25%, but in all cases is limited to the Irish tax on the income item. This pooling provision allows for the fact that foreign branch profits may be taxed at a variety of tax rates and looks at the overall rate, not at the rates country by country.
Repatriation of profits and Irish withholding tax A withholding tax of 20% applies to dividends and other profit distributions made by an Irish resident company. However, extensive exemptions are available in cases of certain payments to certain shareholders, including:
— Irish tax resident companies;
— Charities and pension funds;
— Certain collective investment funds;
— Certain employee share ownership trusts; and,
— Certain companies and individual residents in other EU Member States, or countries with which Ireland has a tax treaty.
Dividends and other profit transfers from Ireland do not have to be in euro, any currency can be used. For the parent subsidiary directive to apply, a relationship of no less than a 10% shareholding must exist.
Double Taxation Agreements
To facilitate international business, Ireland has signed comprehensive double taxation agreements with 72 countries. These agreements allow the elimination or mitigation of double taxation.
In addition, where a double taxation agreement does not exist with a particular country, unilateral provisions within the Irish Taxes Acts allow credit relief against Irish tax for foreign tax paid in respect of certain types of income.
Cross Border International Trade
We specialise in setting up tax effective companies in Ireland. We can provide all incorporation, accounts, tax and day to day management services for your company in Ireland for a fixed fee. If you wish to find out more about setting up a base in Ireland, please do not hesitate to contact us directly.
Corporate Structuring
There is a range of corporate structures available in Ireland. It is important you choose well to ensure you are being tax efficient. In the following pages, we outline the features of the various corporate structures. Please click on the red buttons below where you will find information about each structure. The low corporate tax rate for trading profits of 12.5%, coupled with exemptions from many taxes and incentives to invest, make Ireland a very attractive jurisdiction. Company law is more flexible in allowing transactions between companies that are subsidiaries of a single holding company.
A Licensing, or royalty structure can be adapted to achieve the maximum tax and commercial advantages. Ireland is an attractive jurisdiction from a taxation perspective for the establishment of trusts by non-resident, non-domiciled persons with no connection to Ireland. An Irish company acts as an agent for an overseas company in respect of trading activities, including the supply of services. The Irish company is used to provide administrative services to the overseas company.
• Irish Trading Company
• Holding Company
• Licensing Structure
• Irish Trust
• Principal Agency Structure
Retirement & Entrepreneurs Relief (Business Exit Tax Planning)
Whether you’re retiring from employment or exiting your own business, the transition often triggers tax implications—especially on lump sum payments or the sale of shares and assets.
If you’re receiving a pension top-up, an ex gratia payment, or planning to sell business assets or company shares, it’s important to understand the potential exposure to Capital Gains Tax (CGT), Income Tax, and USC. These transactions can create significant tax liabilities if not planned carefully. We specialise in retirement tax planning and can help you navigate the complex reliefs available—such as Retirement Relief and Entrepreneur Relief—to reduce or eliminate your tax bill. Early planning ensures you stay compliant and retain more of your hard-earned wealth.
Buying or Selling a Business
Whether you’re planning to buy or sell a business, the structure of the transaction—shares, assets, or a combination—can significantly impact your tax exposure.
Selling a Business
A business sale may involve:
- A share sale, where ownership of the company is transferred,
- An asset sale, where specific business assets are sold, or
- A restructuring, such as a hive down/hive out or a share-for-share exchange.
You may also encounter management buyouts or business amalgamations. Each structure has different tax consequences and should be carefully planned to minimise liabilities and maximise post-sale value.
Share Sale
In a share sale, the buyer acquires the company by purchasing its shares. The seller typically pays Capital Gains Tax (CGT) at 33% on the gain between the original share cost and the sale price. However, various reliefs may reduce this tax bill, including:
- Retirement Relief
- Entrepreneur Relief (S.597AA TCA 1997)
- Share Buyback Relief
- Share-for-Share Exchange Relief
- Business Restructuring Reliefs
For owner-managers or family business owners, the goal is often to extract the maximum amount of value on retirement or exit. A share sale can help avoid the double taxation that arises in an asset sale and may be more tax-efficient if there’s a high base cost in the shares. However, buyers will usually require detailed tax warranties and indemnities from the seller, along with a thorough tax due diligence review. This can extend timelines and increase deal complexity.
Asset Sale
In an asset sale, the buyer acquires individual assets (e.g. goodwill, stock, property) directly from the company—leaving company ownership unchanged.
This approach typically triggers Corporation Tax (up to 25%) within the company, and a second layer of tax (up to 48%) if proceeds are later distributed to shareholders. As a result, asset sales often carry a heavier overall tax burden for sellers compared to share sales.
On the buyer’s side, asset sales are usually quicker and lower risk, as they don’t involve acquiring the full legal history of the business. Due diligence is simpler and the buyer can choose which assets and liabilities to acquire.
How TaxTalk Can Help
We guide clients through the full business sale or acquisition process—structuring deals to minimise tax, identifying qualifying reliefs, and managing due diligence efficiently. If you’re considering selling or buying a business, early tax planning is essential to protect value and avoid unexpected liabilities.
Share Buybacks & Tax-Efficient Cash Extraction
What Is a Share Buyback?
A share buyback occurs when a company repurchases its own shares from a shareholder. This allows the shareholder to reduce or fully exit their ownership in exchange for a lump sum payment. When structured correctly, this payment can qualify for Capital Gains Tax (CGT) treatment (33%) rather than Income Tax (up to 52%), resulting in substantial tax savings. In many cases, Retirement Relief or Entrepreneur Relief can further reduce CGT to as low as 0% or 10%.
Why Consider a Share Buyback?
Share buybacks are commonly used for:
- Retirement or business exit of a shareholder
- Buying out a departing director or co-owner
- Family business succession or ownership restructuring
- Extracting surplus cash from the company in a tax-efficient way.
Tax Advantages of a Share Buyback
If Revenue’s conditions are met, the buyback proceeds are taxed as a capital gain, not income. This can create significant savings compared to dividends or salary payments.
Tax reliefs that may apply include:
- Retirement Relief – potentially reduces CGT to 0%
- Entrepreneur Relief – CGT rate reduced to 10% on qualifying disposals.
Revenue Conditions for CGT Treatment
For a buyback to be treated as a capital transaction under Section 176 TCA 1997, the following conditions generally must be met:
- The buyback must be wholly or mainly for the benefit of the trade
- The shareholder must substantially reduce their shareholding
- Shares must have been held for at least 5 years
- The shareholder must be resident and ordinarily resident in Ireland
- The transaction must not be part of a tax-avoidance arrangement
If these criteria are not satisfied, the payment is taxed as a dividend, which may result in a higher tax liability.
Cash Extraction Options
In addition to share buybacks, we can advise on:
- Dividends and director remuneration
- Company-funded pension contributions
- Share sales to external or internal buyers
- Asset transfers and restructuring
We tailor the extraction strategy to fit your personal goals, company structure, and tax profile. Certainly — here’s an expanded and professional version of the “Other Cash Extraction Options” section, suitable for your website:
Other Cash Extraction Options
While a share buyback can be highly tax-efficient in the right circumstances, it’s not always the best or only strategy. There are several other ways to extract cash from your company, and each has different tax, legal, and commercial implications. At TaxTalk, we help you identify the most appropriate mix based on your personal goals, business structure, and overall tax position.
Dividends and Director Remuneration
Dividends remain a common method of extracting profits from a company. They are generally taxed at the marginal income tax rate (up to 52%) but can be efficient when used alongside salary or pension planning.
We’ll help you:
- Plan tax-efficient dividend strategies
- Balance salary and dividends for optimal net income
- Utilise tax credits and exemptions to reduce effective tax rates
Company-Funded Pension Contributions
Your company can make pension contributions on your behalf, which are:
- Fully deductible for the company
- Not taxed as income to you when paid in
- Tax-deferred until retirement, often taxed at lower rates on drawdown
This is a powerful long-term extraction strategy, especially if you’re within 10–15 years of retirement. We work with your pension advisor to ensure contributions are tax-compliant and maximised within Revenue limits.
Share Sales to External or Internal Buyers
Selling shares—whether to a third party, a key employee, or a family member—can unlock substantial value in a tax-efficient way, especially where Retirement Relief or Entrepreneur Relief is available.
We assist with:
- Structuring share sales to qualify for CGT reliefs
- Minimising tax on intra-family or management transfers
- Navigating due diligence and legal documentation.
Asset Transfers and Business Restructuring
In some cases, extracting value through the sale or transfer of specific company assets (e.g. property, intellectual property, or investments) may be more efficient than a full share sale or buyback.
We advise on:
- Selling or transferring assets to shareholders or connected parties
- Avoiding double taxation traps
- Using group structures or holding companies for tax efficiency
Tailored Advice for Real Results
No two businesses—or owners—are the same. That’s why we build bespoke extraction strategies that take into account:
- Your retirement timeline
- Cashflow needs (now and in the future)
- Your company’s financial position
- Available reliefs and compliance obligations
Want to know the most efficient way to take cash out of your business? Contact us today for a strategic, tax-led plan designed around your goals.
How TaxTalk Can Help
We provide expert advice on planning and executing share buybacks and other tax-efficient cash extraction strategies, including:
- Assessing eligibility for capital treatment
- Structuring transactions to meet Revenue conditions
- Securing advance clearance from Revenue
- Ensuring full compliance with legal and accounting obligations
Start Planning Today
If you’re considering retiring, stepping back, or extracting funds from your business, early planning is key to maximising value and minimising tax. Get in touch with TaxTalk for tailored, strategic advice.
Revenue Audits & Interventions
A Revenue audit can be a stressful and time-consuming process—but with the right support, you can manage it efficiently, reduce penalties, and protect your business.
At TaxTalk, we help individuals and businesses prepare for, respond to, and resolve Revenue audits and interventions with confidence.
What Is a Revenue Audit?
A Revenue audit is a detailed examination of your tax returns, books, and records to ensure compliance with Irish tax law. It may focus on one specific tax (e.g. VAT, PAYE, Income Tax, Corporation Tax) or review multiple tax heads over several years. Revenue audits usually fall into one of three intervention categories:
- Level 1 – Self-correction and unprompted disclosures
- Level 2 – Risk-based reviews or profile checks
- Level 3 – Full audits or investigations, often with penalties and interest
Why You Might Be Audited
Revenue selects taxpayers for audit based on a variety of factors, including:
- Industry benchmarking and data analytics
- Late filings or discrepancies in returns
- Claims for refunds, reliefs, or losses
- Employee reporting or third-party data (e.g. CRO, banks)
- Random selection
How We Can Help
We support clients at every stage of the audit process, including:
Pre-Audit Review
We carry out an internal review of your tax position before Revenue arrives. This includes checking returns, reconciling accounts, and identifying any issues that should be disclosed voluntarily to reduce penalties.
Managing the Audit
We act as your representative throughout the process—liaising directly with Revenue, attending meetings, and responding to queries. Our goal is to keep the audit focused, controlled, and resolved as efficiently as possible.
Making Voluntary Disclosures
Making a prompt and qualifying disclosure can reduce penalties significantly and may help avoid publication or prosecution. We help prepare and file disclosures that meet Revenue’s technical and timing requirements.
Resolving Disputes
If you disagree with Revenue’s position, we advise on appeals, settlements, and negotiations—ensuring your rights are protected and the outcome is fair and proportionate.
Common Areas of Focus in Revenue Audits
- Director expenses and benefits-in-kind
- VAT on property and services
- PAYE/PRSI compliance
- Undeclared rental income
- Professional services withholding tax (PSWT)
- Share schemes and employee remuneration
- Use of company assets for personal benefit
Don’t Wait Until You’re Audited
Early tax health checks and risk reviews can uncover issues before Revenue does, and put you in a much stronger position. If you’re concerned about a potential audit or want to review your compliance risk, talk to us confidentially.
Facing a Revenue audit or letter of enquiry? Let TaxTalk help you protect your business and reach the best possible outcome.