Most discussion of Irish crypto taxation focuses on individual investors. But a growing number of Irish businesses are also encountering crypto — accepting it as payment, holding it on their balance sheet, paying for services with it, or in some cases receiving investment in crypto form.
The accounting and tax treatment of crypto for Irish companies is distinct from the personal CGT analysis, and involves corporation tax, VAT, and financial reporting considerations that individuals do not face. For a broader overview of how crypto is taxed across all categories, see our full library of crypto tax guides.
Accepting Cryptocurrency as Payment for Goods or Services
If an Irish company accepts Bitcoin (or any other cryptocurrency) as payment from a customer, the revenue recognition and VAT treatment is the same as for any other payment. The company has sold goods or services. The consideration received happens to be cryptocurrency rather than euros.
Revenue recognition: The transaction is recorded in the company’s accounts at the euro value of the cryptocurrency at the date of receipt. This is the amount included in turnover for corporation tax purposes.
VAT: If the company is VAT-registered and the supply is VATable, VAT applies at the appropriate rate on the euro value of the supply. The fact that payment is in crypto does not affect the VAT liability. The company must account for VAT on the euro value of the supply and remit it to Revenue accordingly.
The crypto received: The cryptocurrency is now a company asset, recorded in the balance sheet at its acquisition cost (the euro value at the date of receipt). If the company later disposes of that crypto — selling it for euros, exchanging it for another currency, using it to pay a supplier — a corporation tax event arises on any gain between the acquisition cost and the disposal proceeds.
Disposing of Cryptocurrency Held by a Company
When a company disposes of cryptocurrency it holds as an asset, the gain is subject to corporation tax rather than CGT. The corporation tax rate on chargeable gains for Irish companies is 33% — the same rate as personal CGT, but calculated and paid through the corporation tax return rather than a personal CGT return.
For a trading company whose primary activity is not crypto trading, crypto holdings are typically classified as investment assets (capital assets) and gains on disposal are chargeable gains within the corporation tax computation.
The calculation methodology is the same as for personal CGT: disposal proceeds minus acquisition cost equals gain, subject to corporation tax at 33%. The underlying mechanics mirror what individual investors face, as explained in our guide to how crypto-to-crypto trades trigger CGT in Ireland.
Paying Suppliers or Contractors in Cryptocurrency
If an Irish company pays a supplier, contractor, or service provider using cryptocurrency, the payment is a disposal of the crypto asset for the company.
The company’s allowable expense for corporation tax purposes is the euro value of the crypto at the date of payment (which is the disposal proceeds for the company’s CGT calculation). If the company acquired the crypto at a different value, a gain or loss arises on the disposal.
The supplier or contractor receiving the crypto has their own tax position — they have received payment in kind at the market value on the date of receipt.
Paying Employees in Cryptocurrency
Paying an employee in cryptocurrency is a benefit in kind (BIK). The employee receives a taxable employment benefit equal to the market value of the crypto in euros on the date received. PAYE, PRSI, and USC apply on this value in the normal way — the company must process the payment through payroll and deduct the relevant taxes.
The company’s deductible expense (the salary cost for corporation tax) is the euro value of the crypto at the date of payment.
This creates complexity in the payroll system because the taxable benefit must be converted to euros for PAYE purposes at the date of each payment, and the actual amount received by the employee will fluctuate with crypto market prices.
Revenue does not permit crypto salary payments as a substitute for minimum wage compliance — the minimum wage obligation is expressed in euros, and crypto payments whose euro value at the time of payment falls below minimum wage would be non-compliant.
Crypto on the Company Balance Sheet: Accounting Treatment
There is no specific Irish or IFRS accounting standard for cryptocurrency. The accounting treatment applied by Irish companies is generally derived from existing standards, with the two most common approaches being:
Intangible assets (IAS 38): Cryptocurrency is treated as an intangible asset and carried at cost or, if active market exists, at revalued amount. Under cost model, the asset is carried at acquisition cost less any impairment. Under revaluation model, fair value gains are recognised in equity (not profit).
Inventory (IAS 2): For companies actively trading crypto as part of their business (a crypto exchange business, for example), crypto may be treated as inventory, valued at the lower of cost or net realisable value.
For most Irish businesses that hold a small amount of crypto received as payment or as an investment, the intangible asset treatment at cost is most common.
The financial reporting treatment affects the presentation in the accounts — how the asset appears on the balance sheet — but does not change the tax treatment, which follows the corporation tax rules regardless of the accounting classification.
VAT and Crypto Transactions: A Specific Consideration
The EU Court of Justice ruled in 2015 (Hedqvist case) that exchange of traditional currency for Bitcoin is exempt from VAT. This means that a company whose primary activity is buying and selling cryptocurrency for fiat (a crypto exchange) is making VAT-exempt supplies. Exempt status means no output VAT is charged, but input VAT on costs cannot be recovered — potentially a significant cost for exchange businesses.
For a normal trading business that accepts crypto as payment, the exemption applies to the crypto exchange aspect but not to the underlying supply of goods or services — the supply itself remains subject to VAT at the appropriate rate.
Corporation Tax Returns: Where to Report Crypto
Corporate crypto gains are reported within the corporation tax return (CT1), in the chargeable gains section. The same aggregated approach applies — total proceeds, total costs, and net gain are reported rather than individual transactions. Individual investors and directors with personal crypto holdings will instead report through the Form 11, which we cover in our step-by-step guide to filing crypto on your Irish tax return.
The corporation tax return and payment timeline is nine months from the company’s year end for both filing and payment, with preliminary tax requirements discussed in my main corporation tax guide.
Paddy Malone FCA AITI
Paddy is the principal of Malone & Co. Chartered Accountants in Dundalk. A Fellow of Chartered Accountants Ireland and a Chartered Tax Consultant with the Irish Tax Institute, he has been advising businesses across County Louth and the North-East for over 35 years.