3 Year tax break for New Companies

Believe it or not there has never been a better time to establish a new business as a Limited Company.

The Government have announced in the Budget for 2009, that start up companies which commence trading from January 1st, will be exempted from both Corporation tax and Capital Gains Tax for the first three years, up to a total tax liability of €40,000.

This translates into a massive €320,000 in tax free company profit at the current rate of corporation tax rate of 12.5%, each year for three years.

Naturally, there there are some 'terms and conditions' attached to this initiative, which is waiting for EU approval but none which we believe will impede a genuinely new project.

For instance already established businesses can not simply set up a new company and move an existing trade over.