Corporation tax cut benefit unlikely for 90% manufacturing enterprises

Almost 90 per cent of manufacturing entities are unlikely to benefit from the recent cuts in the corporation tax rate.

Around 88 per cent of manufacturing enterprises that filed tax returns will continue to be taxed at a higher rate.

The highest burden will fall on proprietorships, which will be taxed at the highest marginal income-tax rate, 42.7 per cent, against the corporation tax rate of 25.17 per cent now.

The gap is even wider with new manufacturing companies, which will be taxed at 17.2 per cent. Traditionally new businesses start as proprietorships and then structure themselves as companies as