What rate of tax do I pay if my company receives investment income ?
Common examples of investment income would be rent, dividends and deposit interest.
The rate of corporation tax on investment income would be 25% not the normal 12.5%.
And if your company is also a “close company” there is an additional surcharge as below
For example if your company is owned by its directors then the company would be deemed to be what’s called a “close company”. Most companies in Ireland would be close companies
This is a surcharge of 20% payable on investment income after the 25% tax has been paid where it is not paid out as a dividend to its owners 18 months after the year end date
So in affect your effective rate of tax on investment income after the 25% CT rate and surcharge could be up to 38% in total
Any queries on same give me a call on 091 763817 or emial me at oliver@taxreturnhelp.ie