Change in Due Date Preliminary CT

Change in Due Date for Payment of Preliminary Corporation Tax by Certain Companies

Section 958 TCA 1997 (as amended by Section 58 of the Finance Act 2002) advances the payment date for preliminary corporation tax to one month before the end of the accounting period. The change is being phased in over a 5 year transition period and is to be fully effective for accounting periods ending after 2005. During the transition period, preliminary corporation tax is payable in two instalments. The first instalment is due 1 month before the end of the accounting period. The second instalment within 6 months after the end of the accounting period.

The changes in preliminary corporation tax are set out in detail in Tax Briefing Issue 48.

The legislation also contains a mechanism which allows the Minister for Finance to make an Order providing that preliminary corporation tax due to be paid in any month be paid on an earlier date in that month. This can apply to both first and second instalments of preliminary corporation tax.

The Minister for Finance by means of an Order made on 26 July 2002 (S.I. No. 394 of 2002) appointed -

• 20 November 2002 as the payment date for preliminary corporation tax where a company’s accounting period ends in the period -
  • 21 May 2002 to 31 May 2002 (inclusive) in the case of payments which are second instalments of preliminary corporation tax, and
  • 21 December 2002 to 31 December 2002 (inclusive) in the case of payments which are first instalments of preliminary corporation tax, and
• 20 December 2002 as the payment date for preliminary corporation tax where a company’s accounting period ends in the period -
  • 21 June 2002 to 30 June 2002 (inclusive) in the case of payments which are second instalments of preliminary corporation tax, and
  • 21 January 2003 to 31 January 2003 (inclusive) in the case of payments which are first instalments of preliminary corporation tax.