Close companies
Overview
The Corporation Tax (CT) system contains special provisions for companies which are regarded as 'Close companies'.
Most Irish resident companies are close companies. A company owned by a small number of individuals (for example, a family company) will usually be a close company. Most companies quoted on a stock exchange, by their nature, will not be close companies.
Companies pay CT on their profits. A company which is a close company also pays an additional surcharge on certain undistributed after-tax income. This surcharge is designed to discourage the accumulation of profits in a company. If the profits are distributed to shareholders, they are liable to Income Tax at a higher rate.
Special provisions also apply to loans, advances and other benefits provided by close companies to their shareholders, or directors, and their associates.
For further information on close companies, please see Tax and Duty Manual Part 13.
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