Close Company Surcharge (Ireland)
Estimate the s440/s441 surcharge (20% investment, 15% service income) on undistributed after-tax income of a close company.
Data verified · May 2026
What triggers the close company surcharge?
Retaining after-tax passive income instead of distributing it: undistributed investment and estate (rental) income attracts a 20% surcharge under s440, and undistributed trading income of a close service company attracts 15% under s441. Both are charged on top of the corporation tax already paid.
Source: Taxes Consolidation Act 1997 ss 440-441 ; Revenue. · updated 2026
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Everything about Close Company Surcharge (Ireland)
📋Overview+
Calculates the close company surcharge: 20% on undistributed after-tax investment and estate (rental) income under s440, and 15% on undistributed after-tax service-company trading income under s441, after dividends paid within 18 months.
📖User guide+
How to use this calculator
- 1
Enter undistributed after-tax investment/rental income.
- 2
Enter undistributed after-tax service-company trading income.
- 3
Enter distributions paid within 18 months of period end.
- 4
Read the surcharge by category and the total.
📚Glossary+
- s440 surcharge
- 20% on undistributed investment and estate income of a close company.
- s441 surcharge
- 15% on undistributed trading income of a close service company.
ℹ️Sources & updates+
Last data update
May 21, 2026
Sources and references
Taxes Consolidation Act 1997 ss 440-441 ; Revenue.
The data in this calculator is updated regularly to reflect the latest official rates. When in doubt, consult the official sources listed above.
FAQ — Close Company Surcharge (Ireland)
What triggers the close company surcharge?+
Retaining after-tax passive income instead of distributing it: undistributed investment and estate (rental) income attracts a 20% surcharge under s440, and undistributed trading income of a close service company attracts 15% under s441. Both are charged on top of the corporation tax already paid.
How can a company avoid the surcharge?+
By paying distributions within 18 months of the period end — dividends paid in that window reduce the undistributed base before the surcharge is computed. Enter those distributions to see the net exposure.
Why are there two different surcharge rates?+
Because the legislation treats the two income types differently: 20% applies to investment and estate income (s440), while 15% applies to the trading income of a close service company (s441). The calculator shows each category separately before totalling.