Since the announcement of the introduction of the 12.5% corporate tax rate in Ireland, certain tax practitioners, industry and other bodies have been calling for greater clarity concerning the meaning of trading for tax purposes. This is important because only trading income qualifies for the 12.5% tax rate. Non-trading income is liable to corporate tax at 25%. This has culminated in the recent publication of a guidance note by the Irish revenue commissioners (the Revenue) entitled Guidance on Revenue Opinions on Classification of Activities as Trading (the Revenue Guidance). A copy of the Revenue Guidance can be found on the Revenue website at www.revenue.ie.
June 30 2003