Tax relief for new start-up companies

How is the relief calculated?

The amount of employers' Pay Related Social Insurance (PRSI) you pay determines how much relief you can claim. Your relief will be limited to the total amount of employer’s PRSI you pay. This amount may be reduced if you pay over the relief limit of €5,000 per employee or the total PRSI limit of €40,000. For example, if you pay employer’s PRSI of €6,000 for one employee, only €5,000 will be considered for relief.

Partial relief

If your CT due is between €40,000 but not over €60,000 you may be entitled to partial (also known as marginal) relief instead of full relief.

Carry forward of unused relief

Since 2013, it may be possible for your company to carry forward any unused relief from:

  • the first five years of trading where the qualifying trade commenced on or after 1 January 2018
  • or
  • the first three years of trading where the qualifying trade commenced before 1 January 2018.

Next: How do you apply for tax relief for your start-up company?