Tax Relief for New Start-up Companies (Section 486C)

About this scheme

Tax Relief for New Start-up Companies (Section 486C relief) reduces Corporation Tax for the first five years of trading (three years for trades that began before 1 January 2018), applying only to CT on profits from the new trade and chargeable gains on disposals of trade assets. A company qualifies if it was incorporated on or after 14 October 2008 and began trading between 1 January 2009 and 31 December 2026, in a trade that is not excluded (excluded activities include succeeded trades, land development, petroleum or mineral extraction, certain service companies, and primary agriculture, fishery or aquaculture production). The relief is separately capped by reference to employer's PRSI paid, with an overall limit of €40,000 qualifying PRSI per accounting period. Unused relief can be carried forward within the qualifying period, subject to restrictions. The relief is claimed through ROS on the company's Form CT1 return.

Who can apply

• Company must be incorporated on or after 14 October 2008, and set up and begin trading between 1 January 2009 and 31 December 2026
• Total CT due must not exceed specified levels: full relief where CT due is €40,000 or less in a tax year; partial relief where CT due is between €40,000 and €60,000 (this limit relates to CT due on all the company's income and gains, not just CT relating to the qualifying trade)
• Relief can only be applied against CT on profits from the new trade and chargeable gains on disposals of assets used in that trade — not against CT on unrelated income or gains
• Relief is also limited by reference to employer's PRSI: capped at a maximum of €5,000 employer's PRSI per employee or director, and (from 2025) a maximum of €1,000 Class S PRSI per individual where a director pays PRSI under Class S instead; there is an overall limit of €40,000 qualifying PRSI in an accounting period
• The trade must be a 'qualifying trade' — excluded trades include: a trade previously carried on by another person that the company has succeeded; activities previously carried on as another person's trade or profession; land development; exploration and extraction of petroleum or minerals; service company activities as defined in Section 441 TCA 1997; primary production of fishery, aquaculture, or agricultural products as defined in EU Commission Regulation 2023/2831; and activities that would form part of an associated company's existing trade if carried on by that associated company
• If the company takes on the activities of another trade while already claiming relief, the new trade is not a qualifying trade; if part of the qualifying trade is transferred to a connected person, relief for that part of the trade is lost
• Unused relief can be carried forward — for the first five years of trading where the qualifying trade commenced on or after 1 January 2018, or the first three years where it commenced before that date, subject to certain restrictions

How to apply

1. 1Confirm the company was incorporated on or after 14 October 2008, began trading between 1 January 2009 and 31 December 2026, and carries on a qualifying trade (not one of the excluded activities).
2. 2Calculate the relief due based on total CT due (full relief up to €40,000 CT due, partial relief up to €60,000) and the employer's or Class S PRSI paid, up to the applicable caps.
3. 3Apply for the relief through the Revenue Online Service (ROS) on the company's Form CT1 Corporation Tax return; unused relief may be carried forward within the first five (or three) years of trading, subject to restrictions.