Why Does a Business Need Accounting and Bookkeeping Services?
A business organization communicates through its book of accounts. Accounting and bookkeeping services speak for a business entity. Once a company gets incorporated, the journey of the transaction begins. These transactions are dealt with different stakeholders in a different way. So, it becomes essential to keep a record of each one of them. This system of recording the daily transactions is considered as bookkeeping. Once recorded, they are to be analyzed, interpreted, summarized accordingly and it is known as accounting, which is a much broader concept.
Accounting Associations and Groups in Ireland
- Accounting Technicians Ireland
- Chartered Accountants Ireland
- Certified Public Accountants (CPA Ireland)
BEPS stands for Base Erosion and Profit Sharing. It is a center that tirelessly works on developing the International and Irish Tax policies and keeps an eye on removing the mismatches in the taxation framework.
Controlled Foreign Corporation (CFC) rules are features of income tax system. These are designed to limit the artificial deferral of tax. They are required only with respect to the income of an entity that is not taxed to the owners of the entity. Currently, Ireland doesn’t have any CFC rules, but these are included in the European Union (EU). As a member of EU, Ireland will be adopting the rules latest by 31st Dec 2018.
Tax System in Ireland
Tax system plays a major role in the development and growth sector of a country’s economy. Let’s have a look on the tax system in Ireland.
Taxation Year and myAccount
The tax year in Ireland runs between 1st Jan- 31st Dec. Any individual who moves to Ireland to initiate their work life needs to apply for Personal Public Service Number and has to pay tax as per PAYE system. When it comes to tax management, one can use ‘myAccount’ online portal to do so. This helps one to claim tax credits, declare incomes, claim refunds, submit a tax return, etc.
Revenue Online Service (ROS)
If an individual is a self-employed or an employer, he/she can opt for Revenue Online Service (ROS) that ultimately helps for filing tax returns, carry out business activities online, make payments, claim repayments, etc.
Irish Income Tax Bracket 2018
The income tax to be paid by individuals in Ireland is based on the following tax slab:
||Category of People
||Individuals without a dependent family
||Single/widowed parent for a one-parent family tax credit
||Earned Income Remainder
Universal Social Charge (USC)
Universal Social Charge is a charge on the gross income before any pension contribution for each employee. It replaces both income and health levy. The employer receives a Tax-Credit certificate for each of the employees.
Standard Rate of USC 2018
|Rate of Tax
||Up to €12,012
||€12,012 - €1,772
||€18,772 - €70,044
||€70,044 - €100,000
||Any PAYE income over €100,000
||Non-PAYE (self-employed) income over €100,000
Capital Taxes in Ireland
Capital tax is a tax on the capital gains. The most common form of capital gains includes the sale of stocks, bonds, precious metals, and property. Let’s have a glance at the different types of capital taxes.
1. Capital Acquisition Tax
If an individual receives a gift, he is entitled to pay gift tax. In case, if it has been inherited, an inheritance tax needs to be paid.
2. Capital Gains Tax
This type of tax is made on the capital gain made on the disposal of an asset.
3. Capital Taxes Following Dissolution/Separation
Any separation of partners or dissolution results in capital gains tax, capital acquisition tax.
Business Setup Worldwide Accounting Services
Business Setup Worldwide is a rostrum that helps business entities to rise and grow in their business field. We do help individuals, freelancers, small or big business to expand their reach the step into the international market. Keeping the core essentials in minds, we provide an extensive range of accounting services that include:
- Internal and external auditing
- Dealing with international taxation
- Maintaining the book of accounts
- Preparing the financial statements
- Generating trial balance
- Accounting for international business
- Company secretarial services
Benefits of Availing Accounting and Bookkeeping Services
We have seen the important role of accounting and bookkeeping services plays for a business entity regardless of its size and nature, and why these services are essential. Let’s have a look at the benefits that can be derived by availing these services:
- It becomes easy to set a financial budget
- It acts as a time and cost saver
- It helps to analyze the business market position
- Helps to build goodwill
- Maintains a finance track
At Business Setup Worldwide, we not only provide the core such as company incorporation or accounting services but also provides other services like solving out the legal proceedings, dealing with the international framework and tax structure. Our team of experts looks closely at the delicate matters and provide you the best solution for your business.