Tax Deductions and Credits for Small Business Owners in Ireland

Tax credits and deductions can be very helpful in lowering an Irish small business owner’s tax burden. In order to fully benefit from these opportunities, it is crucial for business owners to be knowledgeable about the numerous deductions and credits that are available to them. Note that tax laws and rates can change, and it is always advisable to contact us or consult with a tax professional to get the most current information. For VAT try out our Ireland Tax Calculator.

Tax Deductions and Credits for Small Business

Tax Deductions

  • Startup Relief: New businesses may be entitled to relief from corporation tax for the first three years of trading, provided they meet certain conditions.
  • Research and Development (R&D) Tax Credit: Companies engaged in R&D may be eligible for a tax credit of 25% of qualifying R&D expenditures.
  • Capital Allowances: Businesses can claim allowances on capital expenditure incurred on certain assets used in the business.
  • Work from Home Relief: If employees work from home, they may be entitled to claim a deduction for utility bills and other expenses incurred.
  • Employment and Investment Incentive (EII): Provides tax relief for investment in certain corporate trades.
  • Training and Education: The costs of training and education for your employees can often be deducted.
  • Bad Debt: If your business has irrecoverable debts, they may be deductible for tax purposes.

Tax Credits

  • Earned Income Tax Credit: Self-employed individuals can claim the Earned Income Tax Credit.
  • Key Employee Engagement Programme (KEEP): This provides for a beneficial taxation treatment of share options granted by small and medium-sized enterprises to key employees.
  • Home Renovation Incentive (HRI): If you have carried out renovation work on your home, you might be able to claim the HRI tax credit.

More :

Tax-Advantaged Savings and Investment Accounts

Taxation of Rental Income

How Much Can You Earn Before Paying Tax in Ireland

What Can Farmers Claim VAT Back in Ireland

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