For the purposes of this example the following has been assumed
Cost of Purchased Equipment = €150,000
Amount of Company Profit = €500,000
| | Without Capital Allowances | Standard Capital Allowances | ACA |
Example of savings with ACA | Proportion of Deductable Capital Equipment Cost | 0 | 12.5% | 100% |
| Deductable Capital Equipment Costs | 0 | €18,750 | €150,000 |
| Taxable Profit (minus deductions) | €500,000 | €481,250 | €350,000 |
| Tax Payable on Profits @12.5% | €62,500 | €60,156.25 | €43,750 |
| Tax Saved with deductions | | €2,343.75
| €18,750 |
Please Note:
This table is for illustrative purposes only. Customers should seek their own tax advice and contact their financial advisor or Revenue with any questions regarding ACA.
More information on how to claim this tax benefit can be found HERE