Monthly Archives: September 2026

VAT Registration Made Simple

VAT Registration After Crossing the Threshold

VAT Return,

What to Do Before Your Next Invoice

Your sales have been climbing and the latest turnover figure has pushed you over the VAT threshold. That is a good sign for the business, but it creates a tax job that should not be left until the next VAT deadline.

For many Irish businesses, VAT registration becomes obligatory once annual turnover exceeds the relevant threshold. Revenue’s current VAT registration thresholds are:

  • €42,500 for businesses supplying services only;
  • €85,000 for businesses supplying goods.

There are other thresholds and exceptions, so the figure that applies to you depends on what you sell and where your customers and suppliers are based.

The first few days after crossing the threshold matter. You need to establish the correct registration position, work out the effective date, identify the VAT rate for what you sell, update your invoicing and bookkeeping, and keep enough cash aside for the first return. Sending an invoice with the wrong VAT treatment can create extra work for you and your customer later.

First Work Out Whether You Have Actually Crossed the Threshold

Turnover for VAT purposes is not the same as the amount that happened to arrive in your bank account this month. Revenue calculates annual turnover using the value of relevant supplies, excluding VAT, in a calendar year. The calculation can include taxable goods and services, supplies of immovable goods, certain financial transactions, and insurance or reinsurance services.

Some items are left out. Take the occasional disposal of a business asset such as a building, vehicle or machine. If a trader sells €70,000 of goods and also sells a delivery van for €20,000 as a once-off disposal, the van sale is disregarded for the SME threshold calculation and the relevant turnover remains €70,000.

Main Irish VAT thresholds in 2026

VAT Registration Thresholds
TYPE OF ACTIVITY THRESHOLD
Services Only €42,500
Goods €85,000
Mixed Goods And Services Where
90% Or More Of Turnover Is From
Qualifying Goods 		€85,000
Certain Goods Manufactured Or
Produced From Zero-Rated Materials 		€42,500
Intra-Community Acquisitions In
Relevant Cases 		€10,000
Certain Cross-Border Distance Sales
Of Goods And B2B Services 		€10,000

A mixed business deserves a closer look. The €85,000 threshold can apply where at least 90% of turnover comes from qualifying supplies of goods. A café, consultant who also sells equipment, trades business, online retailer or manufacturer may not fit neatly into the first category that comes to mind.

Register With Revenue As Soon As the Obligation Arises

Once you have established that registration is required, deal with the application promptly. Irish-established businesses can register through Revenue Online Service, and a tax agent can do this on your behalf. TR1 applies to individuals, sole traders, trusts and partnerships, while TR2 applies to limited companies.

The date on the registration matters more than many new VAT traders expect. Revenue states that VAT registration will generally take effect from the date shown on the registration form. Backdating can be agreed in certain circumstances. If you voluntarily elect to register while still below the threshold, the effective date cannot be earlier than the start of the taxable period in which you apply.

That is the reason not to guess which invoice should suddenly include VAT. A sale made close to the point at which your registration becomes effective may need different treatment from an earlier sale. If you crossed the threshold some time ago and only spotted it during bookkeeping, ask your accountant or Revenue to establish the correct effective date before changing historic invoices or charging customers retrospectively.

Do Not Automatically Add 23 Percent to the Next Invoice

Ireland’s standard VAT rate is 23%, but it is not the rate for every sale. From 1 January 2026, the main rates have been 23% standard, 13.5% reduced, 9% second reduced and 4.8% for livestock, alongside zero-rated supplies in qualifying categories. Check the current VAT rates and the rate that applies to the exact product or service you provide.

Suppose you provide a service that is correctly charged at 23% and your net fee is €1,000. The VAT is €230, bringing the invoice total to €1,230. If you had promised a consumer a fixed final price of €1,000 and that price now has to be treated as VAT-inclusive at 23%, the economics are very different. The net amount is about €813.01 and the VAT element is about €186.99. Your customer still pays €1,000, so the VAT comes out of the price you had expected to keep.

That pricing issue is especially important for businesses selling to private consumers, charities, exempt organisations or other customers who cannot recover all of the VAT. A VAT-registered business customer may be able to reclaim VAT on a qualifying purchase, so a net-price quote can be easier to adjust commercially. Consumer pricing often leaves much less room.

Check Your Existing Quotes and Contracts Before Rebilling

Read the wording you have already given customers. Does the quote say €2,000 before VAT, €2,000 including VAT, or simply €2,000? A contract may also specify how taxes are treated if the supplier becomes VAT registered during the engagement. The wording can determine whether VAT is added to the customer’s total or absorbed within the amount already agreed.

For recurring work, review subscriptions, retainers, standing orders and direct-debit amounts before the next billing run. If your accounting software creates invoices automatically, change the tax settings before the automation sends another batch.

Your VAT Invoice Needs More Information Than Your Old Invoice

A proper VAT invoice is not simply your previous invoice with a VAT line typed underneath.

It should include details such as the date of issue, a unique sequential invoice number, your full name and address, your VAT registration number, the customer’s name and address, a description of the goods or services, the VAT-exclusive price, the applicable rate and the total VAT payable.

The VAT invoice must generally be issued within 15 days of the end of the month in which the goods or services were supplied. The timing is particuarly key where work is completed near the month-end or where customers pay in advance.

For invoices of no more than €100, simplified invoicing may be available in qualifying circumstances. A simplified invoice still needs core information, including the issue date, supplier details and registration number, a description of the supply and the tax payable or price exclusive of tax. It cannot be used for intra-Community supplies.

Be Careful When Correcting an Invoice

Mistakes happen, especially during the first few weeks after registration. Correct them properly rather than deleting the old invoice and pretending it never existed. Where an invoice shows too much VAT, the supplier remains liable for the VAT shown until the error is corrected using the required credit-note and revised-invoice process. Where too little VAT is shown, a full credit note and revised invoice may be required.

See Revenue’s guidance on amending VAT invoices before changing an invoice that has already gone to a customer.

Set Up Your Bookkeeping Before the First VAT Return

Once VAT appears on your sales invoices, part of the money you collect is tax that may be payable to Revenue. Treating the full bank receipt as available trading cash is an easy way to create a shortfall at filing time.

Your bookkeeping system should record sales net of VAT, output VAT charged to customers, purchases, and deductible input VAT supported by valid invoices. Revenue allows VAT-registered traders to reclaim VAT on goods and services used for taxable supplies, subject to the normal restrictions.

The time limit for a VAT repayment claim is generally four years. There are costs on which VAT cannot normally be reclaimed, including entertainment and many passenger motor vehicle costs.

This is a good point to clean up receipt capture, bank feeds and invoice coding. If the business has grown quickly enough to cross the VAT threshold, bookkeeping that worked when there were ten transactions a month may become unreliable at fifty or a hundred. Our online bookkeeping information explains how cloud bookkeeping can connect sales, expenses, receipts and bank transactions in one system.

Know When Your First VAT Return and Payment Will Be Due

The standard VAT taxable period in Ireland is two months, beginning on the first day of January, March, May, July, September and November. Revenue says VAT must normally be filed and paid by the 19th day of the month after the taxable period ends. ROS filers receive an extension to the 23rd day.

Revenue may authorise four-monthly returns where annual VAT liability is between €3,001 and €14,400, and six-monthly returns where annual liability is between €1 and €3,000. Monthly returns are generally associated with traders who are regularly in a VAT repayment position. An annual Return of Trading Details is also required, breaking purchases and sales down by VAT rate.

Late payment has a measurable cost. Revenue currently charges interest on overdue VAT at 0.0274% per day, or part of a day, from the due date until the outstanding VAT is paid. Penalties can also arise for late or non-filing. The Revenue interest guidance applies even where the original error began as an administrative oversight.

Cash Flow Can Change Once VAT Registration Starts

The normal invoice basis can require you to account for VAT when you make the supply or issue the invoice, even if the customer has not yet paid you. For businesses with long payment terms, that timing can put pressure on cash.

Some VAT-registered businesses may apply to use the moneys received basis, often called the cash receipts basis. This can be available where turnover does not exceed or is not likely to exceed €2 million in a continuous 12-month period, or where at least 90% of supplies are made to customers who are not entitled to a full VAT deduction or are not VAT registered. The moneys received basis rules contain exclusions, so eligibility should be checked before changing the way you account for VAT.

Even if you stay on the normal basis, start forecasting VAT separately from corporation tax, income tax, payroll and day-to-day costs. A healthy bank balance shortly after a busy invoicing month can include a sizeable VAT amount that is already committed.

What If You Crossed the Threshold Earlier Than You Realised?

This situation is actually common. A business may grow through several small clients, marketplace sales, card transactions or a single unusually strong quarter. By the time the annual accounts are prepared, the threshold was crossed months earlier.

Do not pick an arbitrary date and start rewriting every invoice. Reconstruct your turnover by date, identify the point at which the threshold rules became relevant, and speak to your accountant or Revenue about the correct registration date and any backdating required. Revenue expressly allows VAT registration to be backdated in certain circumstances by agreement with the Revenue Office.

You may then need to correct affected invoices, calculate output VAT, review VAT that may be reclaimable on qualifying business purchases, submit outstanding returns and deal with interest where payment should have been made earlier. If customer prices were fixed as VAT-inclusive, the business may have to fund some of that historic VAT itself. That can turn a bookkeeping delay into a real margin problem.

The Domestic Threshold Is Not the Only VAT Registration Trigger

A turnover figure below €42,500 or €85,000 does not always keep a business outside the VAT system. Revenue lists separate situations involving goods and services acquired from abroad. Certain businesses that receive taxable services from abroad may have to register and account for Irish VAT irrespective of the value of those services. Relevant intra-Community acquisitions of goods have a €41,000 threshold.

Cross-border selling can add another layer. The EU VAT SME Scheme has applied since 1 January 2025. Eligible Irish businesses may use thresholds in participating Member States where they make qualifying supplies, provided the scheme conditions are met. One of the central conditions is a Union annual turnover of no more than €100,000 in the current and previous calendar year. Revenue’s EU VAT SME Scheme overview explains the separate registration and quarterly reporting requirements for businesses using the cross-border scheme.

If you sell digital services, distance-sell goods, buy services from overseas suppliers or trade with businesses elsewhere in the EU, do not rely on the domestic turnover threshold alone.

Keep the Records Behind Every VAT Figure

VAT compliance rests on records. Revenue expects full and true records of VAT-related transactions, including invoices, credit notes, receipts, accounts, bank statements and other supporting documentation. Records relevant to claims, appeals and Revenue inquiries generally need to be retained for six years, with longer retention where a matter has not been finalised.

Good records also make your first VAT return much less painful. A VAT figure that can be traced back to invoices and receipts is easier to review than a spreadsheet total assembled after the deadline is already close.

Checklist Before Your Next Invoice

  • Recalculate your calendar-year turnover and confirm the threshold that applies to your activity.
  • Separate genuine trading turnover from items that Revenue excludes from the threshold calculation, such as qualifying occasional disposals of business assets.
  • Submit the VAT registration application promptly and establish the correct effective date.
  • Confirm the VAT rate for each product or service you sell. Do not default to 23% without checking.
  • Review open quotes, contracts, retainers and consumer prices to see whether amounts are VAT-exclusive or VAT-inclusive.
  • Add your VAT registration number and the other required information to your invoice template.
  • Update accounting software, payment links, recurring invoices and e-commerce tax settings before the next billing cycle.
  • Create separate VAT bookkeeping codes for sales and purchases so input and output VAT can be reconciled.
  • Set aside VAT cash as invoices are paid rather than treating the whole receipt as operating money.
  • Put the first VAT3 deadline in the calendar and allow time to review the figures before filing.
  • If the threshold was crossed earlier, reconstruct the timeline before correcting historic invoices.
  • Review cross-border purchases and sales because they can create VAT obligations outside the normal domestic threshold rules.

If you run a limited company and your VAT registration is arriving alongside higher transaction volumes, payroll or more complex reporting, it may also be time to review the wider accounting setup. Our limited company accounting service covers VAT tracking and returns alongside bookkeeping, annual accounts and corporation tax compliance.

Get the First VAT Invoice Right

Crossing the VAT threshold is a compliance change, but it is also a pricing and cash-flow change. The work begins before the next invoice leaves your system. Establish the registration date, check the VAT rate, update the invoice properly and know how much of each customer payment belongs to Revenue.

If your turnover crossed the threshold weeks or months ago, the job is different. Rebuild the timeline first. The cost of correcting the position is usually easier to control when you know exactly which supplies, invoices and VAT periods are affected.

Paying Yourself as a Company Director in Ireland

Paying Yourself as a Company Director in Ireland

Payroll and HR, ,

Salary, Dividends, Expenses and Director Loans Explained

A limited company can have plenty of cash in its bank account and still leave you with a basic question: how do you actually take money out for yourself? Well, it depends on what the payment represents. A salary is pay for your work. A dividend is a distribution to you as a shareholder. An expense repayment gives you back money you spent for the business. A director loan is money owed in one direction or the other. Those are not interchangeable. Moving €2,000 from the company account to your personal account and deciding what it was at year-end can create tax and accounting problems, particularly once a director loan account becomes overdrawn. The right approach is to decide how each withdrawal should be treated before the payment is made, then record it correctly. If you use our limited company accounting support, your payroll, bookkeeping and year-end accounts will be aligned.

Quick answer Most owner-directors use a combination rather than one method. Salary usually provides regular personal income through payroll. Dividends may be paid from distributable profits to shareholders. Genuine business expenses can be reimbursed separately when the conditions are met. Director loans need tighter control because company-to-shareholder loans can trigger both company tax and benefit-in-kind issues.

Start With Salary for Regular Personal Income

Salary is the cleanest route when you need a predictable amount each month. The company pays you through payroll, deducts the taxes required by your Revenue Payroll Notification and reports the payment to Revenue on or before the pay date. Revenue applies PAYE to both proprietary and non-proprietary directors in the same way it applies PAYE to other employees. A company must register as an employer where it pays a director, even when the director is its only worker. Income Tax, USC and PRSI can then apply to the salary. For an owner-manager, the important point is that PAYE reporting still applies even though you control the company.

What the 2026 Income Tax Figures Mean

For 2026, a single person has a €44,000 standard rate band, with income within that band generally taxed at 20% and the balance at 40%. The single person tax credit is €2,000. Personal circumstances can change the band and available credits, so a married director, jointly assessed couple or single parent may have a different result. Revenue publishes the 2026 tax bands and credits here. There is an easy credit trap for owner-directors. A proprietary director who controls more than 15% of the ordinary share capital cannot claim the Employee Tax Credit against income from that directorship. Instead, proprietary director pay can qualify for the Earned Income Credit. In 2026 that credit is the lower of €2,000 or 20% of qualifying earned income. Revenue sets out the Earned Income Credit rules for proprietary directors.

PRSI Uses a Different Ownership Test

Do not use the 15% tax-credit threshold to decide PRSI. A proprietary director who owns or controls 50% or more of a company is classified as self-employed for PRSI and pays Class S. Directors below 50% are assessed according to their circumstances. The Department of Social Protection guidance treats the 50% test separately from Revenue’s proprietary-director test for tax credits. Class S is 4.20% up to 30 September 2026 and rises to 4.35% from 1 October 2026. The minimum annual Class S contribution is €650. If your shareholding is close to the relevant threshold or the ownership structure is more complicated than a single shareholder company, confirm the PRSI class rather than copying the setup of another director. Salary also has a company-side effect. Genuine remuneration for work carried out in the trade is normally recorded as a staff or director cost, subject to the usual tax rules on deductibility and timing. That is different from a dividend, which Revenue expressly states is not deductible when calculating trading profits. Irish trading income is generally subject to Corporation Tax at 12.5%. The number of directors using payroll is substantial. Revenue’s 2025 PAYE analysis recorded 85,607 proprietary directors with €4.888 billion of gross pay, alongside 9,239 non-proprietary directors. Salary through payroll is therefore not an unusual workaround for company owners. It is a standard part of operating an Irish company.

Use Dividends Only When the Company Has Profits Available

A dividend is paid because you own shares. It is not a substitute label for money already withdrawn from the bank. Irish company law restricts distributions to profits available for that purpose. Under section 117 of the Companies Act 2014, those profits are broadly accumulated realised profits that have not already been distributed or capitalised, less accumulated realised losses that have not been written off. A healthy bank balance does not prove that the company has distributable reserves. That distinction is particularly important for a young company. You may have collected annual subscriptions in advance, received a large customer deposit or simply have cash reserved for VAT and Corporation Tax. None of those facts, on their own, establish the amount legally available for dividend.

What Happens When an Irish Company Pays a Dividend

An Irish resident company generally deducts Dividend Withholding Tax at 25% when it makes a dividend or other relevant distribution. If the company declares a gross dividend of €4,000 to you, the normal starting position is €1,000 DWT and €3,000 cash paid to you. The company files and pays the DWT through ROS by the 14th day of the following month. Revenue’s DWT filing guidance also requires a return for a month in which a relevant distribution is made, including cases where no DWT was deducted because an exemption applied.

The 25% deduction is a withholding payment, not necessarily your final tax rate. You declare the gross dividend on your personal tax return. Dividend income is added to your other income and can be liable to Income Tax at 20% or 40%, USC and PRSI, depending on your circumstances. DWT already deducted is credited against the final Income Tax liability.

There is also no Corporation Tax deduction for paying a dividend. Revenue states that dividends and other distributions are not deductible when the company calculates trading profits. This is one reason a salary-versus-dividend comparison needs to look at both the company and the shareholder rather than comparing the cash amounts alone.

A Dividend Should Be Documented as a Dividend

Before payment, confirm the company has enough distributable profits and follow the company’s process for approving the dividend. Keep the supporting accounts, board documentation and dividend voucher or shareholder statement with the company records. If there are several shareholders, share rights and the company constitution also matter. For a one-person company, these formalities can feel excessive because the shareholder and director are the same individual. The company remains a separate legal entity. That separation is exactly what makes the limited company structure useful, so the records should reflect it.

Reimburse Genuine Business Expenses Separately

Expense reimbursement is often the least controversial money you take from the company because, when the conditions are met, it is simply repayment of a cost you incurred while doing your job.

Revenue permits tax-free reimbursement of employee and director expenses where the expense was incurred wholly, exclusively and necessarily in performing the duties and the repayment is supported by vouched receipts. Travel and subsistence can also be repaid under the relevant rules, including approved Civil Service rates in qualifying cases.

A director who pays €180 personally for a qualifying business trip should normally record the €180 as a company expense and receive reimbursement against the supporting record. It should not be added to a later dividend simply because both payments eventually reach the same bank account.

Some Common Payments Are Still Taxable

Home-to-work travel is generally private travel. If the company repays it, the repayment normally has to be treated as pay. Round-sum allowances are also taxable where the company simply pays a fixed amount such as €300 per month for travel or living costs without satisfying the expense reimbursement conditions. Revenue treats those payments as pay through payroll.

And how are the records?

Revenue requires employers to retain information supporting travel and subsistence claims, including the director or employee, date, business reason, journey details, kilometres and the reimbursement basis. Receipts are required where actual costs are reimbursed, and the records must generally be kept for six years. Since 1 January 2024, certain untaxed benefits and expense payments are also subject to Revenue employer reporting rules known as ERR. A clean expense process is simple: pay business costs from the company account where sensible, upload receipts promptly, record personally funded costs separately and reimburse the exact qualifying amount. This also makes the bookkeeping easier when your accountant reviews the director loan account.

Treat Director Loans as Balance Sheet Transactions

A director loan account records money moving between you and the company that is not salary, dividend or an expense reimbursement. The direction of the balance changes the tax risk.

When You Lend Money to the Company

Founders often pay incorporation costs, software, deposits or early supplier bills personally before the business bank account is fully funded. If those amounts are properly company costs, the company may owe you money. You may also lend cash directly to the company.

Repayment of the original amount the company owes you is normally a balance-sheet repayment rather than salary or a dividend. Interest is separate. A close company can face distribution rules where interest above the specified limit is paid to a director or associate with a material interest. Revenue currently identifies 13% per annum as the specified rate for that close-company rule.

When the Company Lends Money to You

This is the side that needs more care. Most Irish owner-managed companies are close companies. Where a close company makes a loan or advance to a participator or an associate, Revenue requires the company to account for Income Tax on the grossed-up loan. The tax is included on the company’s Corporation Tax return and is not deductible for Corporation Tax.

Take a €10,000 loan from a company to an owner-shareholder. With a 20% standard Income Tax rate, €10,000 is treated as the after-tax amount. Grossing it up gives €12,500, producing €2,500 of company Income Tax under the close-company loan rule. If the loan is later repaid, the company can claim repayment of the corresponding tax, subject to the statutory time limits.

There is a €19,050 exclusion for certain full-time employees or directors who do not have a material interest in the company. Material interest is broadly more than 5% ownership or control for this rule. That exclusion therefore does little for many founder-directors who own a meaningful share of their company.

A Low-Interest Loan Can Also Create Benefit in Kind

The close-company loan charge is not the only issue. An interest-free or low-interest employer loan can create a taxable benefit in kind. Revenue’s current specified rate is 4% for a qualifying home loan and 13.5% for other loans. The taxable benefit is the difference between the interest actually paid and the interest calculated using the specified rate, and the company operates Income Tax, PRSI and USC on that benefit through PAYE.

Revenue sets out the preferential-loan calculation here

Writing the loan off later is not a clean escape. Revenue treats a written-off amount as taxable income to the borrower, with separate consequences under the close-company rules.

How the Four Payment Routes Compare

Method What it represents Main tax route Company requirement Best fit
Salary Pay for your work as director or employeee PAYE, Income Tax, USC and PRSI Payroll registration, RPN and reporting on or before pay date Regular personal income
Dividend Return to you as shareholder 25% DWT upfront, then personal Income Tax, USC and PRSI as applicable Distributable profits, approval records and DWT filing Profitable company with available reserves
Expense reimbursement Repayment of qualifying business costs you funded Can be tax-free where Revenue conditions are me Receipts, business purpose and ERR reporting where applicable Genuine work costs
Director loan Temporary amount owed by you or to you Depends on direction; company-to-owner loans may trigger close-company tax and BIK Accurate director loan ledger, repayment terms and tax review Short-term balance sheet funding, not routine drawings

A Salary and Dividend Mix Can Work Better Than a Single Route

There is no universal salary number that every Irish company director should use. A director with no other income, a director whose spouse earns a separate salary, and a director who already has PAYE income elsewhere can have very different tax outcomes from the same company payment.

Keep tabs on cashflow. A company that is profitable on paper may still need money for VAT, payroll, suppliers and preliminary Corporation Tax. Paying the maximum possible dividend simply because reserves exist can leave the business short several weeks later.

For many established owner-managed companies, the workable pattern is a regular salary that meets the director’s household needs, separate reimbursement of genuine expenses and dividends at selected points after reviewing the company’s accounts and cash position. Contractors using a personal limited company often use this type of planning, which is why Forti’s contractor accounting service includes payroll, salary and dividend planning alongside Corporation Tax and director reimbursements.

Do Not Decide From the Company Bank Balance Alone

Before moving money to yourself, your bookkeeping should tell you at least four things:

  • how much profit has actually been earned;
  • what tax liabilities are building up;
  • whether the company has distributable reserves, and;
  • whether your director loan account is already overdrawn.

A €60,000 bank balance can shrink quickly once VAT, payroll taxes, suppliers and Corporation Tax are allowed for. Irish trading profits are generally taxed at 12.5%, while non-trading income is generally taxed at 25%. Keeping a tax reserve in the company account makes withdrawal decisions much easier.

This is also where regular bookkeeping earns its keep. Forti’s Irish startup accounting checklist covers payroll and director loan accounts early in the company lifecycle, before small informal withdrawals become a year-end clean-up exercise.

Questions to Answer Before Your Next Withdrawal

  • Am I being paid for work, receiving a shareholder distribution, reclaiming a business cost or borrowing money?
  • Has the company processed salary through payroll before or on the payment date?
  • If this is a dividend, do the accounts show enough realised distributable profits after accumulated losses?
  • Has 25% DWT been dealt with and is the DWT return diary date recorded?
  • If this is an expense, do I have the receipt and a clear business reason?
  • What is the current balance on my director loan account?
  • Could a company-to-director loan trigger the close-company gross-up charge or preferential-loan BIK?
  • How much cash must stay in the company for VAT, payroll, suppliers and Corporation Tax?

Build the Payment Method Around Your Actual Numbers

For an owner-director, “salary or dividend?” is usually too narrow a question. Your personal tax position, shareholding, PRSI class, company profit, cash requirements and existing director loan balance all influence the answer.

Set a regular salary deliberately. Reimburse qualifying business expenses as they arise. Review dividends against current management accounts rather than the bank balance. Keep director loans exceptional and visible in the books.

Done that way, taking money from your company becomes part of normal financial management rather than something that has to be reconstructed after year-end.

Frequently Asked Questions

1. How can a company director take money out of a company in Ireland?

A: A company director can generally take money as salary, dividends, reimbursement of genuine business expenses, or through a director loan. Each method has different tax, accounting and reporting requirements.

2. Are dividends taxable for company directors in Ireland?

A: Yes. Irish companies generally deduct 25% Dividend Withholding Tax (DWT) when paying a dividend. The gross dividend must also be declared on the director’s personal tax return and may be subject to Income Tax, USC and PRSI

3. Can a company reimburse a director for business expenses?

A: Yes. Genuine business expenses can generally be reimbursed where they meet Revenue’s conditions and are supported by appropriate records, such as receipts and details of the business purpose.

4. Can a director borrow money from their company in Ireland?

A: A director can receive a loan from their company, but company-to-director loans can trigger close-company tax rules and potentially a taxable benefit in kind. The loan should therefore be properly recorded and reviewed before payment.

5. Should a company director take a salary or dividends?

A: There is no single option that suits every director. The appropriate mix depends on personal income, shareholding, PRSI status, company profits, distributable reserves, cash flow and existing tax liabilities.

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Revenue Registrations for Irish Businesses

Revenue Registrations for Irish Businesses: Everything You Need to Know

Accounting, Annual Returns, Company Registration, Tax Registration, VAT Return,

When you set up a company, sole trade, partnership or trust in Ireland, Revenue needs to know you exist before you can legally trade, invoice, hire staff, or import and export goods. Miss the right registrations and you could face backdated tax bills, Revenue surcharges, or — for importers — goods held at customs. This guide walks you through every registration you might need, the deadlines that matter, and what to do at each stage.

1. What Is a Tax Registration Number?

When you first register with Revenue, you receive a single Tax Registration Number (TRN). For a company, this usually matches your Corporation Tax number. Every tax head you register for afterwards — VAT, Employer PAYE, RCT, EORI — is added under that same TRN rather than generating a new number. Think of the TRN as your tax identity, with each registration as a compliance obligation sitting beneath it.

Almost all registrations are now completed digitally through Revenue Online Service (ROS) via the eRegistration facility at www.ros.ie. Paper forms (TR1 for sole traders and partnerships, TR2 for companies) remain available, but electronic submission is faster and avoids postal delays.

For companies, the TRN is typically identical to the Corporation Tax reference number issued at registration. This number must appear on all invoices, correspondence with Revenue, and statutory filings. Keep it safe — you will use it for every interaction with Revenue from day one.

Important: Getting the right registrations in place from day one is not just box-ticking. Miss one and you could find yourself unable to invoice properly, unable to reclaim VAT on start-up costs, or facing a backdated tax bill once Revenue catches up with you.

2. Core Registrations Every New Irish Business Needs

Most new companies need some combination of the following four registrations. The timing deadlines differ for each, and this is precisely where businesses most commonly get caught out. Revenue does not issue reminders — the obligation rests with you.

  • Corporation Tax (CT)

Every Irish-incorporated company, and every non-resident company trading in Ireland, must register for CT within 30 days of starting to trade. It is charged on worldwide trading profits and chargeable gains at the standard 12.5% rate on active trading income. Sole traders and partnerships register for Income Tax (Form 11) instead, via the same ROS process.

⏰ Within 30 days of starting to trade

  • Employer PAYE / PRSI

The moment you take on your first employee — or start paying yourself a salary as a director — you must register as an employer. PAYE, PRSI and USC must be deducted at source and remitted to Revenue monthly via ROS. This registration must be in place before the first payday, not retrospectively applied.

⏰ Before the first payday

  • Value-Added Tax (VAT)

Mandatory once your taxable turnover exceeds €85,000 (goods) or €42,500 (services) in any rolling 12-month period. Many start-ups also register voluntarily from day one to reclaim VAT on set-up costs such as equipment, professional fees and premises. Voluntary registration means charging VAT on your own sales, so seek advice before opting in early.

⏰ 30 days from end of the month you cross the threshold

  • Relevant Contracts Tax (RCT)

Required for principal contractors engaging subcontractors in construction, forestry or meat processing in Ireland. RCT rates of 0%, 20% or 35% are applied by Revenue depending on the subcontractor’s compliance record. This applies even for non-resident entities where the physical work is carried out in Ireland.

⏰ Before the first subcontractor payment

Note on VAT and “brass plate” companies: Revenue has significantly tightened scrutiny on companies with an Irish address but no genuine business activity in the State. Non-resident directors setting up Irish companies should be prepared to evidence economic substance — a physical lease, an Irish-resident director, or demonstrable trading activity — before VAT registration is approved. Revenue may raise queries and no outcome is guaranteed.

3. Selling Online, Importing or Exporting? You Will Need More

If your business buys or sells goods across borders — especially common for e-commerce retailers using Amazon FBA, Shopify or other platforms — there is a second layer of registrations on top of the core ones above. These are not optional and carry real cash-flow consequences if missed.

EORI Number

An Economic Operators Registration and Identification (EORI) number is required for any business importing goods from outside the EU or exporting to non-EU countries, including Great Britain. Without one, your goods can be held at customs. Registration is free and completed through ROS, but must be in place before your first shipment. Under the Windsor Framework, trading directly between Ireland and Northern Ireland does not require an EORI — it is the Great Britain leg of any shipment that triggers the requirement.

Customs and Excise (C&E) Registration

When you register for an EORI number, Revenue simultaneously registers you for Customs and Excise — one combined step through ROS. Your C&E registration gives you a Trader Account Number (TAN) and an automatic cash account for paying customs duty on shipments.

Postponed Accounting for Import VAT

Once registered for both VAT and C&E, you can avail of postponed accounting. Instead of paying import VAT upfront when goods arrive in Ireland, the customs value is included in the PA1 field on your VAT3 return, recorded as both a T1 (sale) and a T2 (purchase) in the same period. The two sides cancel out — genuinely cash-flow neutral, not simply deferred. For any business importing regularly, this is well worth applying from day one.

OSS — One Stop Shop

If you sell goods or digital services B2C to consumers in other EU member states and your total cross-border sales exceed €10,000 per year, the OSS scheme lets you register once in Ireland and file a single quarterly VAT return covering all participating EU states. Without it, you would need to register separately in each country you sell into — a significant administrative and cost burden as you scale.

IOSS — Import One Stop Shop

If you sell goods imported from outside the EU directly to EU consumers in consignments worth €150 or less, IOSS allows you to collect VAT at checkout and remit through one monthly return. This avoids your customer receiving an unexpected customs bill on delivery — a common trigger for poor reviews and chargebacks.

⚠️ July 2026 Change — Low-Value Importers: From 1 July 2026, the EU removed the long-standing €150 customs-duty exemption on low-value consignments. A flat €3-per-item customs duty now applies to most packages under the new interim rules, even where IOSS is used for the VAT side. If you sell or import goods under €150, factor this duty cost into your pricing and landed cost calculations immediately.

4. VAT Thresholds and Key Deadlines at a Glance

Registration Threshold / Trigger Deadline to Register Source
Corporation Tax Starting to trade Within 30 days Revenue.ie
Employer PAYE First employee or director salary Before first payday Revenue.ie
VAT — Goods €85,000 turnover in any rolling 12 months 30 days from end of month Revenue.ie
VAT — Services €42,500 turnover in any rolling 12 months 30 days from end of month Revenue.ie
OSS (cross-border B2C) €10,000 cross-border EU sales per year Before next B2C EU sale EU Commission
EORI / C&E First import or export outside EU Before first shipment Revenue.ie

5.  Your Compliance Journey: From Incorporation to Year One

Here is the typical compliance path for a new Irish limited company, from incorporation through to the end of your first full year of filings. The CRO and Revenue timelines are independent — both run in parallel from day one.

  • Company Formation: Incorporate your company with the CRO and receive your Certificate of Incorporation. The CRO registration number is separate from your Revenue TRN.
  • RBO Filing: Register your beneficial owners with the Central Register of Beneficial Ownership (RBO) within 5 months of incorporation. This is a legal requirement under the 2019 AML Regulations.
  • First B1 Annual Return: Your first CRO Annual Return falls due 6 months after incorporation. No financial statements are needed at this stage, but it must still be filed on time. Late filing attracts penalties and loses your audit exemption.
  • Revenue Registrations: CT, Employer PAYE, VAT, and any applicable EORI, C&E, OSS, IOSS or RCT registrations, each timed to its own trigger date — not the B1 deadline.
  • Ongoing Bookkeeping and Payroll:  Monthly or quarterly bookkeeping, VAT return preparation, and payroll processing. Cloud platforms such as Xero and QuickBooks keep records audit-ready and accessible in real time.
  • Annual Compliance: Second B1 Annual Return (this time with financial statements attached), Corporation Tax Return (CT1), director Form 11, and RTD, VIES and Intrastat returns where applicable.

Timing note for non-resident directors:

CRO requires identity verification for all directors on B1 Annual Returns — via a PPS number, an RBO reference number, or a Form VIF signed before a notary abroad and filed electronically through CORE. A director who has already obtained an RBO number at Step 2 has one fewer item to resolve when the B1 falls due. The VIF process can take several weeks — start early.

6. Ongoing Annual Obligations

Once registered and trading, here is what you must file and maintain each year. Missing any of these can result in Revenue surcharges, CRO penalties, or loss of audit exemption. Forti maintains a forward compliance calendar for every client to ensure nothing is ever filed late.

Obligation Frequency Filed With
Company accounts (financial statements) Annual CRO
Corporation Tax Return (CT1) Annual Revenue / ROS
CRO Annual Return (B1) Annual CRO
VAT3 Returns (B1) Bi-monthly / monthly / annual (by agreement) Revenue
Annual Return of Trading Details (RTD) Annual Revenue
VIES Return (intra-EU B2B sales) Monthly or quarterly Revenue
Intrastat Declaration (>€750k intra-EU goods) Monthly Revenue / CSO
Director Form 11 (proprietary directors >15%) Annual Revenue
OSS / IOSS Returns (if registered) Quarterly / monthly respectively Revenue

Quick guide to key Revenue forms:

Form 11

The main annual self-assessment tax return for proprietary directors (more than 15% shareholding), sole traders, and anyone Revenue classifies as a chargeable person. Covers income, capital gains, PRSI contributions and any foreign income or assets.

Form 12

For PAYE employees with smaller amounts of additional income — broadly under €5,000 net or €30,000 gross from non-PAYE sources such as rental income or investment returns. Above either threshold, you move to Form 11.

Form TR2

The company tax registration form, used to register a limited company for Corporation Tax, Employer PAYE and VAT. Submitted via ROS eRegistration — no paper version is needed in most cases.

7. The Forti All-In Revenue Registration Package

Rather than billing registration by registration, Forti offers all applicable Revenue registrations as one fixed-fee package. We review your business activities, identify exactly which registrations are required, and complete everything on your behalf — correctly and on time.

Typical savings by business type:

Business Type Typical Registrations Needed Individual Cost Forti Package Saving
Trading business CT, PAYE, VAT, EORI €600 €550 €50
Importer CT, PAYE, VAT, EORI, C&E €750 €650 €100
E-commerce retailer CT, PAYE, VAT, EORI, OSS, IOSS €900 €800 €100

All fees are quoted exclusive of VAT at 23%. Businesses requiring up to three registrations can also choose the individual registration service at €150 + VAT per registration.

8. Key References and Further Reading

All figures, thresholds and procedural requirements in this guide are drawn from primary Irish and EU sources. The links below are the authoritative references for each topic covered.

9. Frequently Asked Questions

Q: What is a Tax Registration Number and why do I need one?

A: A Tax Registration Number (TRN) is the single reference Revenue issues when you first register. For a company, it usually matches your Corporation Tax number. Every other tax head — VAT, Employer PAYE, RCT, EORI — is added under that same TRN rather than generating a new number. You will need it to trade, invoice clients, submit returns, and receive any VAT refunds.

Q: When do I need to register for VAT in Ireland?

A: VAT registration becomes mandatory once your taxable turnover exceeds €85,000 in any rolling 12-month period for goods, or €42,500 for services. You then have 30 days from the end of the month in which you crossed the threshold to register. Many start-ups also register voluntarily from day one to reclaim VAT on set-up costs — though this also means charging VAT on your own sales, so advice first is recommended.

Q: Do I need an EORI number if I only sell within Ireland?

A: No. An EORI number is only required if you move goods to or from outside the EU — most commonly Great Britain. Under the Windsor Framework, trading directly between Ireland and Northern Ireland does not require an EORI. It is the Great Britain leg of any shipment that triggers the requirement.

Q: Within how many days must I register for Corporation Tax after starting to trade?

A: Every Irish-incorporated company must register for Corporation Tax within 30 days of starting to trade. “Starting to trade” generally means the first point at which you take any action with a view to making a profit — not just the date of your first invoice. If in doubt, err on the side of registering earlier.

Q: What changed for low-value imports into the EU from 1 July 2026?

A: From 1 July 2026, the EU removed the long-standing €150 customs-duty exemption on low-value consignments. A flat €3-per-item customs duty now applies to most packages, even where IOSS is used for the VAT side. If you sell or import goods valued under €150, factor this duty cost into your pricing and landed cost calculations immediately.

Q: What is OSS and who needs to register?

A: The One Stop Shop (OSS) allows businesses selling goods or digital services B2C to consumers in other EU countries to register once in Ireland and file a single quarterly VAT return covering all participating EU states. It applies once total cross-border B2C sales exceed €10,000 per year. Without it, you must register for VAT separately in each country you sell into.

Q: What is postponed accounting for import VAT, and is it worth using?

A: Postponed accounting allows businesses registered for VAT and Customs & Excise to avoid paying import VAT upfront when goods arrive in Ireland. The customs value is recorded on the VAT3 return as both a T1 (sale) and T2 (purchase) — the two sides cancel out, making it genuinely cash-flow neutral. For any business importing regularly, this should be set up from day one.

Q: Can a non-resident director be on an Irish company without a PPS number?

A: Yes. CRO requires identity verification for all directors on B1 Annual Returns, which can be met via a PPS number, an RBO reference number, or a Form VIF signed before a notary abroad and filed electronically through CORE. The VIF process can take several weeks, so begin well in advance of your B1 filing deadline.

Q: How quickly can Forti complete my Revenue registrations?

A: Once all required information and documentation is received from you, Forti typically completes Revenue registrations within 3 to 5 working days. EORI and Customs & Excise registrations are generally processed by Revenue on the same day. VAT registration for non-resident entities may take longer if Revenue raises queries.

Ready to Get Your Registrations Right?

Our team at Forti handles everything — from identifying which registrations your business needs to completing them all under one fixed fee. No missed deadlines. No compliance surprises.

Forti Revenue Registration Guidance

Setting up the company

Setting Up a Company in Ireland as a Non-Resident Founder: The Complete Compliance Guide

Company Registration, Limited Companies, Non-Resident Director

Why International Founders Choose Ireland and What You Need to Know Before You Start

Ireland has become one of the most attractive jurisdictions in the world for international founders looking to establish a European presence. A 12.5% Corporation Tax rate on qualifying trading profits, full access to the EU single market, an English-speaking legal and regulatory environment, and a well-developed professional services sector make it a compelling choice for founders from the US, Middle East, India, Southeast Asia, Africa and beyond. But setting up an Irish company as a non-resident is not without its complications. The requirements are specific, the timelines matter, and the compliance obligations that follow incorporation are ongoing and consequential. This guide covers everything you need to know from choosing the right structure to managing your Irish company compliantly from abroad.

Step 1: Choose the Right Legal Structure

Most international founders incorporate in Ireland as a Private Limited Company (LTD) the standard vehicle for trading companies, technology startups, e-commerce operations, and straightforward corporate structures. Key features of the Irish LTD:

  • Limited liability shareholders are not personally liable for company debts beyond their investment
  • Single director permitted an Irish LTD can have one director, though the EEA residency requirement applies (see Step 2)
  • Single-director rule: if the LTD has only one director, that director cannot also act as company secretary a separate individual or professional firm must be appointed
  • No minimum share capital you can incorporate with €1 in share capital
  • Full EU market access an Irish company trades freely across the EU single market

A Designated Activity Company (DAC) may be appropriate in certain circumstances for example, where the company’s objects need to be restricted or a lender requires it. Note that a “holding company” is not a company type in itself an LTD or other suitable vehicle can be used within a holding or group structure. The right choice depends on your commercial model and longer-term objectives.

Step 2: The EEA Director Requirement Section 137, Section 140 or an EEA Director

This is the requirement that catches most non-resident founders by surprise. Irish company law requires that at least one director of an Irish company be ordinarily resident in the European Economic Area (EEA). If you are based outside the EEA in the US, UK, India, UAE, or elsewhere you have three routes to satisfy this requirement.

Option A Appoint an EEA-resident director

Any individual ordinarily resident in an EEA Member State can satisfy the requirement. This person must genuinely discharge their statutory duties the role carries real legal responsibility under Irish company law and should not be treated as a nominal appointment.

Option B Section 137 Bond

A Section 137 Bond is an insurance bond that allows a company with no EEA-resident director to operate legally in Ireland. Key points:

  • Bond value: €25,000
  • The bond must be effective from the date of incorporation
  •  Issued for a minimum two-year period  it does not automatically terminate if an EEA director is later appointed
  • Provided by an authorised surety (typically an authorised insurance company)

At Forti, we coordinate the Section 137 Bond application, documentation and CRO submission with the bond provider. Our arrangement fee is €1,800 + VAT, separate from the bond premium charged by the surety.

Option C Section 140 Certificate

After incorporation, an established company may qualify for a Section 140 Certificate if it can demonstrate a real and continuous link with economic activities being carried on in Ireland. The CRO specifically recognises this exemption. It is not available at the point of incorporation, but may be a relevant consideration as the company’s Irish activities develop.

What happens when the Section 137 Bond expires? Before the bond term ends, the company must assess how it will continue to satisfy Section 137 by renewing or replacing the bond arrangement, having appointed an EEA-resident director, or potentially qualifying for a Section 140 certificate. Planning ahead avoids a gap in compliance.

Step 3: Registered Office, Company Secretary and Irish Presence

Every Irish company must maintain a registered office in Ireland a physical address where official correspondence from the CRO and Revenue is received. A PO Box does not satisfy this requirement. Every Irish company must also appoint a company secretary with specific statutory responsibilities, including ensuring annual returns are filed on time. Where there is only one director, a separate individual or professional firm must be appointed as secretary. Forti provides registered office and company secretarial services to non-resident clients, giving your company a compliant Irish presence without requiring you to maintain a physical office here.

Step 4: Beneficial Ownership Registration (RBO)

Within five months of incorporation, your company must file its beneficial ownership information on the Register of Beneficial Ownership (RBO) at rbo.gov.ie. A beneficial owner is generally any individual who ultimately owns or controls more than 25% of the shares or voting rights, or who otherwise exercises control over the company. For non-resident founders, this step requires particular attention:

  • Each beneficial owner must provide a PPS Number (Irish Personal Public Service Number)
  • Where a beneficial owner does not have an Irish PPS Number which is the case for most international founders identity must be verified using the VIF (Verification of Identity Form) process
  • The RBO must be updated whenever relevant changes in beneficial ownership occur

Failure to register within five months is an offence under the European Union (Anti-Money Laundering: Beneficial Ownership of Corporate Entities) Regulations. Forti handles the RBO filing as part of our non-resident incorporation service.

Step 5: Revenue Registration Before You Trade

Incorporation at the CRO does not automatically register your company with Revenue. Where a company has no Irish-resident directors, Revenue’s standard eRegistration route may not be available. Revenue specifically lists companies with no Irish-resident directors among those who may be unable to use standard online registration. In practice, registration is typically handled through a tax agent Forti acts as tax agent for non-resident clients and manages this process on your behalf. Registrations typically required before trading:

  • Corporation Tax mandatory for all Irish companies
  • Employer PAYE/PRSI required if paying a salary to any director or employee
  • VAT see Step 6

Once registered, Revenue issues the company with its Tax Reference Number, used for all future filings and correspondence.

Non-resident director payroll an important detail

Revenue’s position is that remuneration for the office of director of an Irish-incorporated company is generally within the charge to Irish income tax, even where the director is non-resident and performs duties outside Ireland. PAYE typically applies, although relief may be available under an applicable Double Taxation Agreement (DTA), and in some cases a PAYE Exclusion Order may alter the position. This is an area where specific advice is important before setting up payroll.

Step 6: VAT Registration for Non-Resident and International Businesses

Whether an Irish company must register for VAT depends on where it is established for VAT purposes, what it supplies, where its customers are located, and whether it is making domestic or cross-border supplies. A non-established person supplying certain taxable goods or services in Ireland can have an Irish VAT registration obligation regardless of turnover, depending on the nature of the supply. Irish VAT thresholds (in effect since 1 January 2025):

  • €85,000 for the supply of goods
  • €42,500 for the supply of services

Many international businesses register for Irish VAT voluntarily particularly those importing goods into Ireland or incurring Irish costs they wish to reclaim.

Cross-border and EU VAT obligations

  • OSS (One Stop Shop): Where an Irish company makes intra-Community distance sales of goods or cross-border supplies of telecommunications, broadcasting or electronic (TBE) services to EU consumers, and those sales exceed €10,000 annually, VAT must be accounted for in each customer’s country. OSS registration in Ireland allows all such EU VAT to be reported and paid centrally via Revenue.
  • IOSS (Import One Stop Shop): Relevant for goods shipped from outside the EU to EU consumers where the consignment value is €150 or less.
  • EU VAT SME Scheme (from 1 January 2025): Qualifying small businesses established in the EU, with EU-wide turnover not exceeding €100,000, may be able to use VAT exemptions in participating Member States, subject to national thresholds and conditions.
  • EORI Number: Required for any Irish company importing goods into Ireland or the EU. Obtained from Revenue and required for customs declarations.
2026 E-Commerce Alert €150 Customs Duty Change From 1 July 2026, the EU removed the customs duty exemption for low-value consignments of up to €150. An interim flat customs duty approximately €3 per tariff line item now applies to these consignments, regardless of whether IOSS, Special Arrangements or standard VAT is being used. This measure is currently intended to apply until 1 July 2028. If you are shipping goods into the EU from outside the EU, this change directly affects your landed cost and pricing model.

Note on non-Irish EU VAT registrations: Forti does not carry out VAT or EORI registrations in other EU jurisdictions directly. Where clients require registrations in other Member States, we introduce them to specialist third-party agents in our network. Those agents quote and bill independently.

Step 7: Corporation Tax Irish Residence, Trading Income and Substance

Irish company tax residence

An Irish company incorporated on or after 1 January 2015 is generally Irish tax resident by virtue of its incorporation, subject to the provisions of any applicable Double Taxation Agreement. Incorporation, tax residence and the applicable Corporation Tax rate are related but separate questions.

Corporation Tax rates

  • 12.5% trading income of an Irish resident company
  • 25% non-trading income, including most investment income, rental income and certain other income streams

What constitutes trading income?

The 12.5% rate applies to the profits of a qualifying trade. For international groups, questions around where activities are carried out, where management and control is exercised, transfer pricing, permanent establishments and economic substance can materially affect the overall tax position. These are matters for specific advice before structuring.

Holding companies a note

If you are considering using your Irish company as a holding vehicle, the tax treatment of dividends, investment income, disposals and intra-group transactions differs from ordinary trading income and requires separate analysis. Participation exemptions, withholding taxes, double-taxation relief and close-company rules may all be relevant.

Preliminary Corporation Tax startup exemption

New companies do not have to pay Preliminary Corporation Tax in their first accounting period where the CT liability is below €200,000. The full liability is instead paid when the CT1 return is filed a meaningful cash-flow benefit for early-stage companies. In subsequent periods, small companies generally base preliminary CT on 100% of the prior year’s liability or 90% of the current year’s liability.

Step 8: Business Banking The Honest Reality

One of the most common questions non-resident founders ask is: “Can you help me open an Irish bank account?” Business banking for non-resident-controlled Irish companies has become significantly more challenging in recent years. The main traditional Irish banks AIB and Bank of Ireland have tightened onboarding criteria substantially, and international founders can face extended delays or rejections depending on jurisdiction, business model and company activity. Practical alternatives many non-resident clients use:

  • Revolut Business fast onboarding, full IBAN, widely accepted
  • Wise Business multi-currency accounts, suitable for most trading needs
  • Airwallex increasingly used for e-commerce and multi-currency operations

Traditional banks may place greater emphasis on the company’s Irish nexus, management activity, commercial substance and the residence of its directors but every application is assessed under the bank’s own KYC and AML policies. Forti does not guarantee bank account openings. Banking decisions are made solely by the financial institutions based on their own criteria.

Step 9: Ongoing Compliance Calendar

Once incorporated and trading, your compliance calendar is as follows:

Obligation Frequency Filed With
VAT3 Return Generally bi-monthly (other periods may apply) Revenue
Payroll Submission On or before each pay date Revenue
PAYE/PRSI/USC Payment Monthly or quarterly Revenue
CRO Annual Return (B1) Annual — first ARD 6 months after incorporation CRO
Corporation Tax Return (CT1) Annual — 9 months after year-end Revenue
Statutory Financial Statements Annual CRO / Revenue
OSS VAT Return (if applicable) (proprietary director) Quarterly Revenue / OSS Portal
RBO Update As and when beneficial ownership changes RBO
Annual return note: Your company’s first Annual Return Date falls six months after incorporation. No financial statements are required with that first B1. Under rules applicable since 16 July 2025, a company generally loses audit exemption for two years only where it files an annual return late more than once within a five-year period. A single late filing no longer automatically triggers this consequence but CRO late filing penalties apply regardless, and repeated lateness carries serious consequences.

Why Non-Resident Founders Work With Forti

Forti works with founders from across the world establishing an Irish company for the first time. We understand that you are operating across time zones, that your banking and tax position may be complex, and that you need an adviser who can explain Irish compliance requirements clearly without assuming you know how the Irish system works. What we provide for non-resident clients:

  • Irish company formation incorporating the right structure from the outset
  • Section 137 Bond coordination application, documentation and CRO submission managed by Forti
  • Registered office and company secretarial services
  • Revenue registration as tax agent, including where standard eRegistration is unavailable
  • RBO filing initial registration and ongoing updates
  • VAT registration and returns, including OSS where applicable
  • Annual compliance accounts, CT1, B1
  • Bookkeeping and management accounts cloud-based, accessible wherever you are
  • Non-resident director payroll and DTA analysis
  • Advisory support ongoing, commercially minded, plain-language

All services are fixed-fee. You know what you are paying before we start.

Book a Free Consultation

Setting up in Ireland as a non-resident founder is very achievable but it needs to be done properly. Forti works with founders from across the world to establish compliant, tax-efficient Irish structures from day one. Book a free 30-minute consultation with our team. We will review your situation, explain your options clearly, and give you a roadmap with no obligation and no jargon.

▣  01 906 5862 | ▣  info@forti.ie | ▣  www.forti.ie
⌖Office 106, Nesta Business Centre, Burton Hall Road, Sandyford, Dublin 18

Frequently Asked Questions

Can a non-resident set up a company in Ireland?

Yes. Non-residents can incorporate and own an Irish company. At least one director must be ordinarily resident in the EEA, or the company must post a Section 137 Bond or obtain a Section 140 Certificate.

What is the Section 137 Bond?

A Section 137 Bond is an insurance bond that allows an Irish company with no EEA-resident director to operate legally. It must be effective from incorporation and is issued for a minimum two-year period. The bond value is €25,000 and is provided by an authorised surety.

What happens when the Section 137 Bond expires?

Before the bond term ends, the company must assess how it will continue to satisfy Section 137 by renewing or replacing the bond arrangement, having appointed an EEA-resident director, or potentially qualifying for a Section 140 Certificate by demonstrating a real and continuous link with economic activities in Ireland.

What is the Corporation Tax rate for Irish companies?

The trading Corporation Tax rate is 12.5%. Non-trading income is generally taxed at 25%. Tax residence, the nature of the income, and any applicable Double Taxation Agreements all affect the overall position.

Do I need an Irish bank account to run an Irish company?

You need a business bank account, but it does not have to be with a traditional Irish bank. Many non-resident-controlled Irish companies use Revolut Business, Wise or Airwallex.

What is the OSS threshold for Irish companies selling to EU customers?

Where an Irish company makes intra-Community distance sales of goods or certain cross-border TBE services to EU consumers exceeding €10,000 per year, VAT must be accounted for in each customer’s country or the company can register for OSS in Ireland and file all EU VAT centrally.

Does the new €3 customs duty affect my e-commerce business?

Yes, if you ship goods valued at €150 or less from outside the EU to EU consumers. From 1 July 2026, a flat interim customs duty of approximately €3 per tariff line applies to these consignments regardless of IOSS use, currently planned to remain in force until 1 July 2028.

Does Forti handle VAT registrations in other EU countries?

Forti does not carry out VAT or EORI registrations in non-Irish EU jurisdictions. Where required, we introduce clients to specialist third-party agents who quote and bill independently.

What is the RBO and when must I file?

The Register of Beneficial Ownership requires companies to register details of individuals who ultimately own or control more than 25% of the company. The initial filing must be made within five months of incorporation. For non-resident founders without an Irish PPS Number, identity is verified via the VIF process.

 

Irish Company Formation Experts