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Special Assignee Relief Programme (SARP)

What is SARP?

SARP provides Income Tax relief to employees that are assigned to work in Ireland from abroad by their relevant employer.

What is a relevant employer?

A relevant employer must be a company that is incorporated and tax resident in a country in which Ireland has a double taxation or a Tax Information Exchange agreement with.

How do you qualify?

You can claim SARP by meeting the following criteria;

  • You arrive in Ireland between 2012 – 2020, at the request of your employer
  • You worked for your employer for 6 months before arriving in Ireland
  • Your employment in Ireland is for a minimum of 12 consecutive months
  • You were not tax resident in Ireland for the preceding 5 tax years
  • You remain a tax resident in Ireland for all years you claim SARP relief
  • You earn a minimum basic salary of €75,000 per annum, excluding bonuses, commissions, etc
Calculating the relief

A proportion of your salary is disregarded for Income Tax, i.e for 2019, the proportion available is 30% of your income over €75,000 up to €1 million.

This would apply if you commenced employment in Ireland on or after 01st January 2019.

Example – Year 1 only
Mary’s Salary €100,000
SARP Threshold €75,000
Balance remaining over threshold €25,000
Balance @ 30% €7,500
Relief @ 40% €3,000

Therefore, Mary is due €3,000 tax refund.
You can also receive certain travel expenses and tuition costs tax free.

How do you apply?

Employers are required to complete a Form SARP 1A for each employee and submit to Revenue within 90 days of the employee arriving in Ireland.

A tax return must be completed by an employee for each year they claim the relief.

Should you be claiming this relief? Contact us today 01 539 7999
Why not read some of our previous blogs here

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Phased Payment Arrangement (PPA) with Revenue

Revenue are introducing a new facility to enable taxpayers to pay their tax liabilities by phased payments through ROS.

From March 25th, taxpayers holding a current ROS certificate can avail of this new facility. You will be able to apply for a PPA through ROS and agree terms.

If you have a PPA already in place with Revenue, you must register for ROS in order to manage and view this arrangement. Revenue have advised those currently availing of this arrangement to register for ROS.

Should you wish your tax agent to have authorisation to access or deal with Revenue regarding your PPA on your behalf, signed authorisation will be required from you

Have a query? Contact us on 01 539 7999
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Types of Companies in Ireland

If you set up your business as a limited company it is a separate legal entity from shareholders and directors.  The assets of the company are the property of the company and not the shareholders.  Therefore, any debts of the company are the responsibility of the company and not the shareholders.

The Companies Act 2014 introduced a number of different types of Companies in Ireland;
  1. Company Limited by Shares (LTD)
  2. Designated Activity Company (DAC)
  3. Company Limited by Guarantee (CLG)
  4. Public Limited Company (PLC)
  5. Unlimited Company
Company Limited by Shares (LTD)

LTD’s are the most popular type of companies incorporated in Ireland. This is a company limited by shares.  This company type does not have an objective clause in it’s constitution so can trade in any type of activity.  LTD’s can have only one director but they must have a separate company secretary.

Designated Activity Company (DAC)

DAC’s are companies incorporated to complete a specific purpose and therefore wish to restrict the activities they can carry out.  They may also carry out specific trades that fall under regulation.  This company type must have a minimum of two directors.

Company Limited by Guarantee (CLG)

CLG’s are usually non profit making companies such as Charities, Trade Unions or Clubs.  They have no shareholders or share capital.  They must have a minimum of two directors and one member.  This member must agree to contribute a minimum of €1 to the company in the event of it winding up with debt.

Public Limited Company (PLC)

PLC’s are companies listed on the stock exchange.  The must have a minimum of two directors and a minimum issued share capital of €25,000.

Unlimited Company

Unlimited Companies are the least popular type of company incorporated in Ireland.  They are companies with no limited liability.  They must have at least two directors and one member.

Should you wish to contact us regarding your business, call us on 01 539 7999 or email info@itasaccounting.ie

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Annual Filing Requirements for Companies

All companies must be registered with the Companies Registration Office.  They must submit an annual return called a B1 along with their Financial Statements to the Companies Registration Office each year. 

These submissions are due in Companies Registration Office 28 days after, what is called the company’s ARD (Annual Return Date). 

A company’s first ARD is set six months after the date the company is incorporated. Their first B1 is due on this date but no Financial Statements are required with this B1.  Thereafter the Company’s ARD is annually.

The form B1 is filed electronically using Core, the Companies Registration Office online system for filing returns.  Once the B1 has been filed the system produces a signatory page which has to signed and returned to the Companies Registration Office within 28 days.  The company’s Financial Statements must also be uploaded to the CORE system in PDF format within the 28 day period.

This must be done in advance of the Companies Registration Office receiving the B1 signatory page.

If these returns are not received by the Companies Registration Office within the appropriate timeframe. The company will be subject to a €100 late filing fee plus €3 for each additional day they are late up to a maximum of €1,200 per return.  The company will also loose the right to claim audit exemption for the following two years.

A company is allowed under the Companies Act 2014 to extend its ARD by up to six months by filing a Form B73 electronically with the CRO using the CORE online system.  The Form B73 may only be filed once every five years.  This form must be accompanied by a B1 which is filed on time.  No Financial Statements need to be filed with this B1. 

It is also important to remember when extending a company’s ARD that this date cannot be more than nine months from year end date of the company’s financial statements.

Should you have any queries  on this issue, please contact us on 01 5397999

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