Concessions made for Corporation Tax
Close company surcharges
The close company surcharge applied to certain undistributed income of close companies. Surcharges may have applied where income was not distributed within 18 months from the end of the accounting period in which the income arose.
Revenue, on application, extended the 18-month period by nine months where a distribution could not be made because of COVID-19. This enabled the company to be better informed in relation to the impact of its current circumstances before making a distribution.
This applied to accounting periods ending from 30 September 2018 onwards, for which distributions that were due by 31 March 2020 onwards to avoid surcharge.
At the same time, records of the circumstances regarding the application to delay making a distribution must be kept.
The COVID-19 related temporary concession regarding the close company surcharge only applied to accounting periods ending up to 31 March 2022.
Normal close company surcharge provisions will apply to accounting periods ending after this date.
How to apply
Applications must be made through MyEnquiries. To do this, click 'Add New Enquiry', then:
- select ‘Corporation Tax’ from the dropdown menu 'Enquiry relates to'
- select ‘Other Corporation Tax Query’ from the dropdown menu 'More specifically'
- set out the facts and circumstances that support the extension of the 18-month period in the ‘Enter details’ box.
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