RELEASE NOTES fr Crpratin Tax Versin 7.0 Build 1 www.relate-sftware.cm supprt@relate-sftware.cm ROI +353 1 459 7800 UK +44 871 284 3446
Cntents Intrductin... 3 Majr changes in Tax Year 2018... 3 Minr changes in Tax Year 2018... 4 Cmpany Details... 6 New ptins in Details Fr Sectin 110 TCA 1997- Qualifying Cmpanies... 6 Optin intrduced fr exemptin frm tax under Sectin 626B... 7 Trading Results... 9 New Tax Fields in Capital Allwances fr Specified Intangible Assets (S291A TCA 1997)... 9 Tax field fr the amunt f specified intangible assets in Capital Allwances... 12 Extracts frm Accunts... 13 Optin t elect Sectin 76A fr detailed trading and Prfit and Lss Accunt... 13 Irish Rental Incme... 14 Pre-letting expenditure n vacant prperties allwed under Sectin 97A... 14 Deductins, Reliefs and Credits... 15 Dividend Withhlding Tax n Distributin received frm Real Estate Investment Trust... 15 Research and Develpment Credit... 16 New ptins t claim fr payment f excess Research and Develpment Tax Credit... 16 Capital Gains... 19 New Tax Fields under Sectin 604A in details f Acquisitin(s)... 19 Capital Gains (Develpment Land)... 20 New Tax Field fr Gain relived under S 604A and Net Lss... 20 Tax Fields remved frm the Tax Year 2018... 21 2 Relate Sftware
INTRODUCTION As per Revenue guidelines and due t the implementatin f the Finance Act 2017 and amendment in the taxnmy, we have made mre than 60 changes in Relate Crpratin Tax Versin 7.0 Build 1 fr the Tax Year 2018. The majr and minr changes have been made t Crpratin Tax t cmply with the Revenue. MAJOR CHANGES IN TAX YEAR 2018 Majr changes include a number f new tax fields and subsectins t be filled in where applicable under Trading Results Capital allwances fr Specified Intangible Assets (S291A TCA 1997) fr Machinery and Plants Amunt f specified intangible assets in Capital Allwances Irish Rental Incme Pre-letting expenditure n vacant prperties allwed by S. 97A Deductins, Reliefs and Credits Amunt f Dividend Withheld n the distributins received frm a REIT in Credits Research and Develpment Credit The aggregated amunt in accrdance with S.766(3B)(a) and S.766(3B)(b) Claims fr Payment f excess research and develpment tax credit Capital Gains Amunt f gain relieved under Sectin 604A Net chargeable gain after Relief under Sectin 604A Net Lss/es in this accunting perid Capital Gains (Develpment Land) Amunt f gain relieved under S 604A Net chargeable gain after Relief under S 604A Net Lss/es in this accunting perid 3 Relate Sftware
MINOR CHANGES IN TAX YEAR 2018 Minr changes have been made t the fllwing areas fr the Tax Year 2018: New Tax Fields fr: Cmpany Details Details f qualifying assets in Details fr Sectin 110 TCA 1997- Qualifying Cmpanies Extract Frm Accunts Optin t elect the treatment f S 76A (as amended by FA 2017) under XBRL 4 Relate Sftware
Relate Sftware is cmmitted t strng custmer service and satisfactin. At all times yu will be able t make cntact with ur cmpany and ur technical service teams. Relate Sftware will prvide the highest level f custmer service. We will prvide telephne supprt as well as nline remte access supprt. This dcument utlines the changes made in Relate Crpratin Tax Manager Versin 7.0.1. Please take time t read the ntes. If yu have any queries, please cntact supprt n supprt@relate-sftware.cm r call +353 1 4597800 (ROI). The fllwing prgram changes have been intrduced t fulfil the requirements f Revenue and requests frm bth users and internal quality cntrl reviews. If yu have any further changes yu wuld like t see in Crpratin Tax, please send an email t enhancements@relate-sftware.cm Imprtant Please nte it is very imprtant that befre running any database update yu perfrm a database backup. Relate Sftware always advise that yur practice takes regular backups t minimise any lss f data. 5 Relate Sftware
COMPANY DETAILS NEW OPTIONS IN DETAILS FOR SECTION 110 TCA 1997- QUALIFYING COMPANIES As per Revenue guideline Sectin 110 Tax Cnslidatin Act 1997 prvides fr a tax regime fr Qualifying Cmpanies. We have intrduced the fllwing Tax Fields under Sectin 110 TCA 1997 Qualifying Cmpanies. Click n T Enter r Edit Details fr Sectin 110 TCA 1997- Qualifying Cmpanies, click this link hyperlink. The Details Fr Sectin 110 TCA 1997- Qualifying Cmpanies will appear n the screen. T cmply with Revenue, we have intrduced the fllwing ptins fr the Tax Year 2018 under the Details Fr Sectin 110 TCA 1997- Qualifying Cmpanies subsectin. I. D the qualifying assets include: See belw: (i) Specified mrtgages as defined (ii) Units in an IREF (iii) Shares that derive the greater part f their value frm land in the State Figure 1: New ptins in Details Fr Sectin 110 TCA 1997- Qualifying Cmpanies 6 Relate Sftware
OPTION INTRODUCED FOR EXEMPTION FROM TAX UNDER SECTION 626B Sectin 626B f Tax Cnslidatin Act 1997 prvides fr an exemptin frm tax in the case f certain capital gains frm the dispsal f hldings in subsidiaries. There are certain cnditins which must be fulfilled befre a gain can be exempt. The investr cmpany must have a minimum sharehlding in the investee cmpany. The investr is required t have a minimum hlding f 5% in the investee cmpany fr a cntinuus perid f 12 mnths in the 3 years prir t the dispsal. The investee cmpany must carry n a trade r the business f investr cmpany, its investee cmpany and their 5% investee cmpanies, taken as a whle must cnsist whlly r mainly f the carrying n a trade r trades. Finally, at the time f dispsal, the investee cmpany must be resident in an EU Member State, a territry with which Ireland has signed a duble tax treaty in frce r a territry with which Ireland has signed a duble tax treaty which has yet t cme int frce. We have added the fllwing subsectin t cmply with Revenue fr the Tax Year 2018. Yu need t enter the apprpriate details in the tax bxes in rder t get the exemptin under this sectin. The new Tax Fields and tick bx are as fllws: Indicate if yu have availed f exemptin frm the tax in the case f gains n certain dispsal under Sec. 626B Details f Dispsal Amunt f gain which sectin 626B applies. If a lss arse n the dispsal, enter the amunt here. See belw: 7 Relate Sftware
8 Relate Sftware Figure 2: New Tax Fields fr Exemptin frm Tax under Sec. 626B
TRADING RESULTS New Tax Fields in Capital Allwances fr Specified Intangible Assets (S291A TCA 1997 ) Sectin 291A TCA 1997 prvides fr Capital allwances against trading incme fr cmpanies that incur capital expenditure n the prvisin f intangible assets fr the purpse f a trade. The scheme applies t a brad range f intangible assets such as patents, cpyright, trademarks knw-hw which is recgnised as such under generally accepted accunting practices. The accunts- based allwance is based n the charge t the Prfit and Lss Accunt r the Incme Statement f the Cmpany fr the accunting perid in respect f the amrtisatin r impairment f the specific intangible assets relative t the actual cst f the asset. The amunt charged is t be cmputed in accrdance with GAAP. As per Revenue guideline fr the Tax Year 2018, we have included the fllwing Tax Fields under the Capital allwances fr Specified Intangible Assets (S291A TCA 1997). (i) Amunt f capital allwance claimed under Sec. 291A(3) TCA 1997 in respect t the capital expenditure incurred befre 11 Octber 2017 (Accunt-based allwance) (ii) Amunt f capital allwance claimed under Sec. 291A(3) TCA 1997 fr this accunting perid in respect t capital expenditure incurred n r after 11 Octber 2017, (Accunt-based allwance) (iii) Amunt f capital allwances, claimed under S 291A TCA 1997(3), nt used in this accunting perid fr carry frward t succeeding accunting perids a) If an amunt f capital allwances fr carry frward at line (iii) refers t capital expenditure incurred n r after 11 Octber 2017, enter that amunt here (iv) If the cmpany is making an electin under Sec. 291A(4) TCA 1997, tick the bx (v) Amunt f capital allwance claimed fr this perid fr which an electin has been made under Sec. 291A(4) TCA 1997, in respect t capital expenditure incurred befre 11 Octber 2017 (Fixed rate allwance) (vi) Amunt f capital allwances claimed fr this accunting perid fr which an electin has been made under Sec. 291A(4) TCA 1997, in respect t the capital expenditure incurred n r after 11 Octber 2017, (Fixed rate allwance) (vii) Amunt f capital allwances claimed under S 291A(4) TCA 1997, nt used in this accunting perid fr carry frward t succeeding accunting perids a) If an amunt f capital allwances fr carry frward at line (vii) refers t capital expenditure incurred n r after 11 Octber 2017, enter the amunt here See belw: 9 Relate Sftware
10 Relate Sftware Figure 3: Click n the hyperlink t pen the subsectin
Figure 4: New Tax Fields in Capital allwances fr Specified Intangible Assets (S291A TCA 1997) 11 Relate Sftware
TAX FIELD FOR THE AMOUNT OF SPECIFIED INTANGIBLE ASSETS IN CAPITAL ALLOWANCES The amunt f specified intangible assets f Capital Allwances will be calculated based n the amunt yu have entered within the Capital Allwances fr Specific Intangible Assets (S291A TCA 1997) subsectin. The calculated amunt will be shwn under the new Tax Field fr the Tax Year 2018. The new Tax Field is as fllws: (d) Amunt f specified intangible assets capital allwances See belw: Figure 5: New Tax Field fr the amunt f specified intangible assets capital allwances 12 Relate Sftware
EXTRACTS FROM ACCOUNTS OPTION TO ELECT SECTION 76A FOR DETAILED TRADING AND PROFIT AND LOSS ACCOUNT Sectin 76 A f Finance Act 2017 refers t the cmputatin f prfits r gains f a cmpany. The sectin prvides a general rule that taxable trading prfits f a cmpany will be based n the prfit accrding t the cmpany s accunts. This sectin has been amended by Revenue due t the intrductin Finance Act 2017. T cmply with Revenue, we have intrduced a new tick bx in Extract f Accunts sectin under XBRL. The new ptin is as fllws: *Detailed Trading and Prfit_Lss Accunt See belw: If yu wish t elect the treatment f S 76A (as amended by FA 2017) shall apply t fr this accunting perid, tick the bx. Figure 6: New ptin t elect the treatment f Sectin 76A under XBRL tab 13 Relate Sftware
IRISH RENTAL INCOME PRE-LETTING EXPENDITURE ON VACANT PROPERTIES ALLOWED UNDER SECTION 97A Sectin 97A f the Taxes Cnslidatin Act 1997 inserted by the Finance Act 2017 prvides that expenses incurred n vacant residential premises prir t it being first t let after a perid f nnccupancy are authrised as a deductin against rental incme frm that premises. The sectin applies t expenditure n a premise which has been vacant fr at least a time perid f 12 mnths and which is then let as a residential premise between 25 th December 2017 (i.e. date f passing Finance Act 2017) and 31 st December 2021. T cmply with Revenue, we have intrduced a new Tax Field in the Rental Incme frm Land and Prperty in the State. Click n the Grss Rent Receivable Schedule and enter the Prelet Expenditure within the schedule. The new Tax Field is as fllws: Pre-letting expenditure n vacant prperties allwed by S. 97A. See belw: Figure 7: Pre-letting expenditure n vacant prperties allwed by S. 97A 14 Relate Sftware
DEDUCTIONS, RELIEFS AND CREDITS DIVIDEND WITHHOLDING TAX ON DISTRIBUTION RECEIVED FROM REAL ESTATE INVESTMENT TRUST Real Estate Investment Trust (REIT) are cmpanies whse incme is derived frm the rental r cmmercial and r residential prperty. REITs are nt chargeable t either Crpratin Tax in respect f incme frm their prperty rental business r chargeable gains accruing n the dispsal f assets f their prperty rental business. A REIT may be a single cmpany r grup f cmpanies. T cmply with Revenue, we have intrduced a Tax Field under the Credit subsectin fr the Tax Year 2018 t enter the amunt f Dividend Withhlding Tax (DWT). The new Tax Field is as fllws: (d) Amunt f DWT withheld n distributins received frm a REIT. See belw: Figure 8: New Tax Field fr the amunt f DWT withheld n distributins received frm a REIT 15 Relate Sftware
RESEARCH AND DEVELOPMENT CREDIT NEW OPTIONS TO CLAIM FOR PAYMENT OF EXCESS RESEARCH AND DEVELOPMENT TAX CREDIT Research and develpment are the keys t a mre knwledge-intensive ecnmy aimed at prviding a sustainable, lng-term basis fr grwth and emplyment. We have intrduced a cuple f new Tax Fields t cmply with Revenue fr the Tax Year 2018. Yu need t enter aggregated amunt calculated in accrdance with s.766(3b)(a) and s.766(3b)(b) in the new Tax Fields under Claim fr Payment f Excess Research and Develpment Credit subsectin. The new Tax Fields are as fllws: In respect f claims fr the first instalment, enter the aggregate amunt calculated in accrdance with (a) s.766(3b)(a) (b) s.766(3b)(b) See belw: Figure 9: Enter the aggregated amunt calculated in accrdance with S. 766(3B)(a) and S. 766 (3B)(b) 16 Relate Sftware
Sectin 766B refers t the limitatin f tax credits t be paid under sectin 766 r sectin 766A. Under Claims fr Payment f Excess Research and Develpment Credit subsectin, we have intrduced the fllwing Tax Fields fr the Tax Year 2018. 28(a) Ttal amunt unused current year credit carried frward t future years fllwing applicatin f s.766b 28(b) Ttal amunt f unused prir years credits carried frward t future years fllwing applicatin f s.766b 29 Grants r similar amunts received specially t supprt R&D activities 29(a) Amunt f grant r similar amunt received specially t supprt R&D activities 29(b) Surce f grant r similar amunt (i) EI R&D grants (ii) IDA R&D grants (iii) LEO R&D vuchers (iv) Higher educatin institute R&D grants (v) Other public R&D grants (including public research centres) (vi) Irish private nn-prfit institute R&D grants (e.g. privately wned research centres, philanthrpic transfers) (vii) Eurpean Unin R&D grants (viii) Other public R&D grants (including freign public universities and public research centres) (ix) Other private nn-prfit institute R&D grants (e.g. privately wned research centres, philanthrpic transfer) (x) Other [please specify in bx] Specify Allwance claimed fr capital expenditure n scientific research (Sec. 756 TCA 1997) See belw: 17 Relate Sftware
Figure 10: New Tax Fields under Claims fr Excess Payment Research and Develpment Tax Credit 18 Relate Sftware
CAPITAL GAINS NEW TAX FIELDS UNDER SECTION 604A IN DETAILS OF ACQUISITION(S) Sectin 604A Taxes Cnslidatin Act 1997 (enacted by Sectin 64 FA 2012) intrduced a capital gains tax relief n dispsals f land r buildings acquired in the perid cmmencing n 7 th f December 2011 and ending n 31 st f December 2013. Sectin 44 Finance (N. 2) Act 2013 extended the perid within which the land r buildings may be acquired fr the purpses f this relief t the 31 st f December 2014. Sectin 604A was further amended by Sectin 33 Finance Act 2017 which prvides that, as regards dispsals made n r after 1 st f January 2018, gains n land and buildings acquired between 7 th f December 2011 and 31 st f December 2014 are nt chargeable gains where the land r buildings are held fr at least 4 years and up t 7 years frm the date they were acquired. Due t the amendment in the Finance Act, we have intrduced the fllwing Tax Fields fr the Tax Year 2018 t cmply with Revenue. Amunt f gain relieved under S 604A Net chargeable gain after Relief under S 604A Net Lss/es in the accunting perid See belw: Figure 11: New Tax Fields under Details f Acquisitin(s) subsectin 19 Relate Sftware
CAPITAL GAINS (DEVELOPMENT LAND) NEW TAX FIELD FOR GAIN RELIVED UNDER S 604A AND NET LOSS Capital gains frm selling r transferring develpment land are nt included in a cmpany s prfit. Instead f that, the cmpany must pay the CGT n these gains. Due t the amendment in the Finance Act 2017, we have added Tax Fields fr the Tax year 2018 t cmply with Revenue. The new Tax Fields are as fllws: Amunt f gain relieved under S 604A Net chargeable gain after Relief under S 604A Net Lss/es in the accunting perid. See belw: Figure 12: New Tax Fields in Capital Gains (Develpment Land) 20 Relate Sftware
TAX FIELDS REMOVED FROM THE TAX YEAR 2018 The fllwing field has been remved frm the Relate Crpratin Tax fr the Tax Year 2018. We have remved the fllwing tax fields frm Cmpany Details Sectin. Cmpany Details D the qualifying assets include specified mrtgages? Frm the Details Fr Sectin 110 TCA 1997- Qualifying Cmpanies subsectin. 21 Relate Sftware