Tax relief for new start-up companies
New companies that start a qualifying trade can get corporation tax relief in their early years of trading under section 486C. The relief is capped by the employer's PRSI the company pays, up to €5,000 per employee and €40,000 a year.
What the relief does
Start-up relief reduces the corporation tax on a new company's trading profits in its early years. Revenue currently describes it as covering the first five years a company trades. It's claimed on the CT1, so it's easy to miss if nobody checks.
How much
Full relief is available where the company's total corporation tax for the period is €40,000 or less, with marginal relief up to €60,000. The relief is then limited to the PRSI the company pays:
- employer's PRSI, up to €5,000 per employee;
- from 2025, Class S PRSI paid on directors' earnings, up to €1,000 per director;
- an overall limit of €40,000 a year.
A company with no employees and no PRSI paid usually gets no relief in that year, but unused relief from the early years can sometimes be carried forward.
Who qualifies
The company must be newly incorporated and start a new trade. Some trades are excluded, and trades taken over from another business don't count. The rules have changed over the years, so check eligibility each year.
We'll check it
A start-up relief check is included on our Small, Medium and Large plans.
Last checked 13 November 2026. This guide is general information, not advice for your company. Tax rules change, so check with us or Revenue before acting.