Combined with afforestation grants and premiums, it's why forestry can be worth looking at on marginal land.
Quick facts
- Income tax
- Exempt
- Corporation tax
- Exempt
- PRSI and USC
- Still due for individuals
- Declare it
- Yes, as exempt income
What's exempt
"You do not have to pay Income Tax or Corporation Tax (CT) on any profits or gains from the commercial use of woodlands in Ireland."
"You will still have to pay Pay Related Social Insurance (PRSI) and Universal Social Charge (USC) on your income if you are an individual."
You still declare it
"You must include any profits, gains or losses that you have made from the use of woodlands on your annual tax return." Put it in the exempt income section of Form 11, or Form CT1 for a company.
Common questions
Is forestry income tax-free in Ireland?
Profits from the commercial use of woodlands in Ireland are exempt from income tax and corporation tax.
Do I pay USC on forestry income?
Yes. Individuals still pay PRSI and USC on it.
Do I need to declare forestry income?
Yes, on your annual return, in the exempt income section.