The extraction of Dividends from your limited company is generally not a tax-efficient method of extracting funds from your Company.
There is often confusion created around this topic due to the fact that the UK Tax System is different from the Irish Tax System, and that in the UK it is efficient.
Dividends are not deductible against Corporation tax, therefore a tax charge of 12.5% is liable on the company profits prior to extraction.
(i) The dividend you receive is taxable at your marginal rate of tax (up to 52% in a lot of cases).
This gives rise to a double taxation charge as you will pay both Corporation tax and Income tax.
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