Do limited apartment management companies pay tax?

B

bob

Registered User
Messages
14
Hi
Do limited Apartment management companies have to pay tax on money not spent during the year.

The limited company takes in fees and spends it on maintenance costs?

Is it exempt or do you only have to pay tax on money earnt... therefore as the company doesn't trade in the normal sense it doesn't pay tax?

Or am I totally off the mark?
 
Re: Do Management companies pay tax

You do not pay tax on the excess of your income in any given year. You are not trading. You will however pay tax on any investment income you may earn (bank interest, etc).
 
Re: Do Management companies pay tax

Hi

As simplyjoe said you do not pay tax on the excess as it is a "self trade".

However if you have interest or investment income this would be taxable.

Also sometimes if there is rental income eg, a mobile phone mast etc then this is also taxable as CT.

Usually write to revenue though and explain that there is no income of significance and they will exempt you.

JHpe this helps

DB
 
Re: Do Management companies pay tax

simplyjoe said:
You do not pay tax on the excess of your income in any given year. You are not trading. You will however pay tax on any investment income you may earn (bank interest, etc).
Click to expand...

Do these companies still have to file the TR2 and CT1 forms?
 
Re: Do Management companies pay tax

Hi

No. You don't need to if you write into revenue and say that the company is a management company, has no trading income and therefore does not need to file a CT1.

Dont need to file tr2 for the same reason. The revenue should be aware of the company on incorporation and it will have no employees, VAT etc

Hope this helps

Dbran
 
So maybe it's a letter that could be sent to the Companies Unit with the F11 CRO? Or would you want to be sending it to your local office?
 
Hi

I usually sent it to the local office and get a confirmation letter back from them. I recon if you send it with the f11 it should do the same.

DB
 
Could someone outline the returns that need to be made annually for this type of company?

Is a B1 return to the CRO requried?

Thanks.
 
Hi Peter

What is required is as follows

Within 28 days of the company's ARD

1) Completed form B1
2) Full set of audited accounts (NB Management Companies are not entitled to audit exemption nor are they entitled to file abridged accounts.)

If the company has non management fee income then a CT1 needs to be filed within 8 months and 21 days of the year end. This income would typically be interest earned on deposits or investments, rental income etc.

Hope this helps

DB
 
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