The UK tax authority on September 26 published draft guidance on the operation of Northern Ireland’s corporation tax regime, setting out the main rules of the tax.
The 100+ page document states that Northern Ireland’s corporate tax rate will apply to ‘Northern Ireland profits or losses” and describes how these profits and losses are calculated for both large sized and small and medium sized companies.
Northern Ireland’s corporate tax rate has been set by the Northern Ireland Assembly at 12.5%, the same as that of the Republic of Ireland, and will apply from April 2018, assuming the Northern Ireland Executive demonstrates its finances are on a sustainable footing.
The draft guidance also sets out special rules that apply to various kinds of Northern Ireland losses and rules for Northern Ireland’s patent box, which will allow certain income from intellectual property to be taxed at a concessionary 10 percent rate. Among the other tax issues detailed is the Northern Ireland Intangible Fixed Assets regime and R&D tax relief.
A consultation on the draft will run until January 1, 2017.
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