Clare Daly
Ceist:122. Deputy Clare Daly asked the Minister for Finance his views on whether public money should be provided to tax-avoiding builders under PPP schemes. [50238/17]
Amharc ar fhreagraTuesday, 28 November 2017
Ceisteanna (122)
Freagraí scríofa
A Public Private Partnership (PPP) is an arrangement between the public and private sectors with clear agreement on shared objectives for the delivery of public infrastructure and/or public services by the private sector that would otherwise have been provided through traditional public sector procurement.
Public private partnerships are fundamentally taxed in the same manner as a normal trading company.
There are two rates of Corporation Tax (CT):
- 12.5% for trading income
- 25% for income from an excepted trade
- 25% for non-trading income, for example rental and investment income.
Corporation Tax is charged on the profits in a company’s accounting period. This period cannot be longer than 12 months. If the tax rate changes in the accounting period, profits will be apportioned on a time basis and taxed accordingly.
There is also a 33% rate that applies to chargeable gains.
Guidance and further information on the Public Private Partnership process in Ireland is available at http://ppp.gov.ie , including Central Guidelines on Corporation tax treatment of Public Private Partnership Agreements.