tax exemption for apartment management companies

A

anotherdub

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I believe management companies for apartment complexes (where the apartment owners are the shareholders of the management company) can be exempt from tax.
Does anyone know what the conditions for this are?

We would like to move our sinking fund from a current account into a deposit / interest account. However there is a concern that earning interest would be considered a profit, and the additional paperwork and accountants fees may outweigh the couple of hundred euro of interest earned.
I'd be interested in hearing from anyone who's been down this road before?
 
anotherdub said:
I believe management companies for apartment complexes (where the apartment owners are the shareholders of the management company) can be exempt from tax.
Does anyone know what the conditions for this are?

We would like to move our sinking fund from a current account into a deposit / interest account. However there is a concern that earning interest would be considered a profit, and the additional paperwork and accountants fees may outweigh the couple of hundred euro of interest earned.
I'd be interested in hearing from anyone who's been down this road before?
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the corp tax on deposit interest is 25%, if dirt is deducted at 25% they should be nil due once bank deduct the dirt

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book about mang companies

check is company already registered for corp tax,
 
The Law Reform Commission had recommended that Sinking Funds would be exempt the DIRT tax. However in the legislation going through the Dail at the moment doesn't include this
 
A management company which is required to register for corporation tax can obtain an exemption from having to file a Corporation Tax Return Form CT1.
You still have to file accounts with the CRO (with an audit if limited by Guarantee).
 
Irrespective of the interest generated by the sinking fund- it is best practice to have your sinking fund in a separate account and with different signatories from the current account.

As a sinking fund is supposed to be growing year on year I do not think it makes sense to keep this in a current account. The fund is for large capital or building works therefore it is unlikely that you need immediate access to the fund hence you could place it on fixed term deposit generating some additional income from the interest after Dirt is deducted.

Joe 90- can you give some more details on how an exemption from filing Corporation Tax may be availed of by management companies. I must be missing something...
 
Where the directors of the company are independent of the developers the company can write to the local tax office for an exemption from filing a tax return. On the basis that the company never has a profit it cuts down on admin.
 
Do you not have a profit if you earn interest on a sinking fund account that is " wisely " invested albeit that the company was set up as a not for profit company ??
 
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