Revenue Note for Guidance

CHAPTER 8

Advance corporation tax

Overview

This Chapter contained the legislative provisions relating to advance corporation tax (ACT). The purpose of ACT was, broadly, to ensure that tax credits on distributions by Irish companies were matched by corporation tax actually paid by such companies. ACT was paid only in respect of distributions made by Irish resident companies before 6 April, 1999. Any ACT paid by a company can be set off against that company’s normal corporation tax on its income, but not on its chargeable gains. Sections 159 to 164 and sections 166 and 167 were deleted by section 41 of the Finance Act 2003, section 165 was deleted by section 69 of the Finance Act 2000. Section 845B provides for the continued set-off of surplus advance corporation tax.