Revenue have published an eBrief on the interaction of tax on annual payments under TCA97 s239 and preliminary tax payments for companies.

In summary,

• In relation to the determination of whether a company is a “small company”, Revenue accepts that income tax payable under section 239 need not be taken into account in determining whether a company falls within the €200,000 limit for small companies.
• In relation to the payment of preliminary tax,
• Revenue is prepared to accept that a small company, opting to pay its preliminary tax on a “preceding year basis”, can satisfy its obligations under section 239(5) by paying 100% of the income tax paid or payable by the company under section 239 in the preceding accounting period;
• On the other hand, where a small company opts, instead, to pay preliminary tax on a “current year basis”, the company should pay at least 90% of its income tax liability under section 239 for the current year.

eBrief No. 28/2008 is reproduced at Section 2.04.