In 2018, the CT rate was 12.5% and the CGT rate was 33%.
A company had a capital gain of €10,000 from selling an asset. CT is chargeable on the capital gain.
A capital gain of €10,000 would result in CGT of €3,300 (€10,000 x 33% = €3,300).
The company need to adjust the gain, so they pay the correct amount of tax (€3,300).
CT capital gain adjustment
|Correct amount of tax
|Divided by CT rate (12.5%)
The company adjust the gain up to €26,400, as CT is being applied (€26,400 x 12.5% = €3,300).