Corporation Tax Act 2010 section 357KC

"SME"

Section 357KC defines when a company qualifies as an "SME" (small or medium-sized enterprise) for the purposes of the Northern Ireland corporation tax regime, by reference to the EU Commission's standard SME definition with certain modifications.

• A company is an SME for an accounting period if it meets the EU definition of a micro, small or medium-sized enterprise either in that period or in each accounting period falling within the preceding 12 months.
• The EU definition used is the Annex to Commission Recommendation No. 2003/361/EC of 6 May 2003, but it is applied with specific modifications for the purposes of this legislation.
• Where an enterprise is in liquidation or administration, the liquidator's or administrator's rights are ignored when determining whether that enterprise, or any other enterprise, qualifies as an SME.
• The data used to assess staff headcount and financial thresholds must relate to the relevant accounting period(s) and be calculated on an annual basis, rather than following the standard timing rules in the EU definition.