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Irish Tax Institute — Chartered Tax Adviser (CTA) Part 1

Practice Questions119 questions

2026 Statistics

Key Facts: CTA Part 2 Exam

€1,715

Part 2 Course Fee (4 modules)

Irish Tax Institute

Part 2 Modules

CTA Syllabus

12.5%

Corporation Tax Trading Rate

TCA 1997

33%

CGT & CAT Rate

TCA 1997 / CATCA 2003

€400,000

CAT Group A Threshold

Budget 2025

CTA Part 2 is the second stage of Ireland's Chartered Tax Adviser qualification, assessed through four modules (Direct Taxes, Capital Taxes, Indirect Taxes, and Professional Skills) via online exams and assignments. The full Part 2 course fee is €1,715 for all four modules (€550 per individual module).

Sample CTA Part 2 Practice Questions

Try these sample questions to test your CTA Part 2 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 140+ question experience with AI tutoring.

1What is the standard rate of Irish corporation tax on trading income for an Irish-resident company?

A.20%

B.25%

C.12.5%

D.33%

Explanation: Irish-resident companies pay corporation tax at 12.5% on income from a trade carried on in Ireland.

2Under Irish tax law, when is a company treated as a 'close company' for corporation tax purposes?

A.When it is controlled by five or fewer participators, or by participators who are directors

B.When it has fewer than 50 employees at the accounting year end

C.When its issued share capital does not exceed €1 million

D.When it is not listed on a recognised stock exchange

Explanation: A close company is defined in section 430 TCA 1997 as one controlled by five or fewer participators, or by participators who are directors. Close company rules drive surcharges, benefits-in-kind treatment, and loan-to-participator charges.

3A close company makes an interest-free loan of €80,000 to a director who is also a participator. No repayment is made within the time limits. How is this typically treated for corporation tax?

A.The loan is deductible as a trading expense in the company's accounts

B.The loan is treated as a distribution and may attract income tax on the director plus close company surcharge consequences

C.The loan is ignored until written off, at which point only a capital loss arises

D.The loan creates an automatic 25% dividend withholding tax charge only

Explanation: Section 436 TCA 1997 treats loans by close companies to participators (and associates) as distributions in specified circumstances, triggering income tax on the participator and close company surcharge consequences.

4What is the headline rate of the R&D tax credit available to qualifying Irish companies, effective from 1 January 2024?

A.30% of qualifying R&D expenditure

B.15% of qualifying R&D expenditure

C.25% of qualifying R&D expenditure

D.12.5% of qualifying R&D expenditure

Explanation: Finance (No. 2) Act 2023 increased the R&D tax credit to 30% of qualifying expenditure (up from 25%) for accounting periods commencing on or after 1 January 2024, payable as a credit or refund mechanism.

5An Irish company wishes to surrender current-year trading losses to another group company. What is the minimum group relationship generally required for group relief?

A.100% direct ownership with identical accounting periods only

B.51% direct ownership of the surrendering company

C.At least 75% direct or indirect ownership of the subsidiary by the claimant group company

D.Any two companies with the same parent registered in Ireland

Explanation: Group relief under section 411 TCA 1997 requires a 75% group relationship (direct or indirect), with matching accounting periods for surrender and claim.

6What rate of dividend withholding tax (DWT) generally applies to qualifying distributions made by Irish-resident companies?

A.12.5%

B.25%

C.20%

D.33%

Explanation: Dividend withholding tax is generally charged at 25% on distributions by Irish-resident companies, subject to exemptions and treaty relief.

7What is the effective corporation tax rate on profits qualifying for the Knowledge Development Box (KDB) relief in Ireland?

A.6.25%

B.10%

C.12.5%

D.25%

Explanation: KDB relief taxes qualifying intellectual property profits at an effective 6.25% rate (50% of the 12.5% trading rate). This is a key advanced corporation tax incentive in the Irish regime.

8When must an Irish company file its corporation tax return and pay any balance of tax due under the Pay & File system?

A.Within six months of its accounting period end

B.Within nine months of its accounting period end (by the 21st or 23rd day of that month via ROS)

C.By 31 October following the calendar year of the accounting period

D.Within 12 months of its accounting period end

Explanation: Corporation tax returns and balancing payments are due nine months after the accounting period end (by the 21st or 23rd day of that month via ROS).

9A new Irish trading company qualifies for the three-year corporation tax exemption for start-up companies. Which condition is essential?

A.The company must employ at least 10 full-time staff within six months

B.The exemption applies automatically to all companies in their first accounting period

C.The company must be funded entirely by venture capital investment

D.The company must be a new trade commenced by a company incorporated and tax-resident in Ireland, subject to the linked trades and group turnover limits

Explanation: Start-up relief (section 486C TCA 1997) applies to qualifying new trades carried on by new Irish-resident companies, subject to anti-avoidance, group turnover caps, and linked-trade restrictions.

10Undistributed investment and rental income of a close company may be subject to a close company surcharge. What is the surcharge rate on such undistributed income?

A.20%

B.12.5%

C.25%

D.33%

Explanation: A 20% close company surcharge can apply to undistributed investment and rental income, with refund mechanics when the income is later distributed.

About the CTA Part 2 Exam

Preparation for the Irish Tax Institute Chartered Tax Adviser (CTA) Part 2 programme. This practice bank covers advanced corporation tax, capital gains tax, CAT, professional practice, and Irish tax legislation tested in the Part 2 Application & Professional Skills modules.

Questions

100 scored questions

Time Limit

Varies by module

Passing Score

Pass each module (see CTA Handbook)

Exam Fee

€1,715 (Irish Tax Institute)

CTA Part 2 Exam Content Outline

25%

Corporation Tax

Trading and passive rates, close companies, loss relief, group relief, R&D credit, KDB, preliminary tax, and anti-avoidance

25%

Capital Gains Tax

CGT computation, reliefs (entrepreneur, retirement, PPR, rollover, incorporation), trusts, and compliance

20%

Capital Acquisitions Tax

CAT thresholds, agricultural and business relief, dwelling house exemption, aggregation, and CGT interaction

15%

Professional Practice

Code of Professional Conduct, Revenue frameworks, confidentiality, conflicts, ROS, and client documentation

15%

Advanced Legislation

TCA 1997, CATCA 2003, Finance Acts, GAAR, mandatory disclosure, EU ATAD, and appeals

How to Pass the CTA Part 2 Exam

What You Need to Know

Passing score: Pass each module (see CTA Handbook)
Exam length: 100 questions
Time limit: Varies by module
Exam fee: €1,715

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

CTA Part 2 Study Tips from Top Performers

1Work through close company scenarios (s.434–s.436 TCA 1997) until loan and benefit treatment is automatic.

2Memorise current CAT Group A (€400,000), B (€32,500), and C (€16,250) thresholds and the €3,000 small gift exemption.

3Practise CGT payment deadlines: 15 December for Jan–Nov disposals, 31 January for December disposals.

4Use TaxFind to locate statutory provisions quickly — legislative navigation is a core Part 2 skill.

5Review the Irish Tax Institute Code of Professional Conduct alongside Revenue's Code of Practice for compliance interventions.

Frequently Asked Questions

What modules are included in CTA Part 2?

CTA Part 2 comprises four modules: Direct Taxes (Application & Interaction), Capital Taxes (Application & Interaction), Indirect Taxes (Application & Interaction), and Professional Skills. Each is assessed through online exams and professional skills assignments.

How much does CTA Part 2 cost?

The Irish Tax Institute charges €1,715 for all four Part 2 modules together, or €550 per individual module. A student subscription fee of €235 per year also applies to registered student members.

What topics should I focus on for CTA Part 2?

Focus on advanced corporation tax (close companies, reliefs, compliance), capital gains tax reliefs and computations, CAT thresholds and exemptions, professional ethics under the Institute's Code of Conduct, and navigation of TCA 1997 and CATCA 2003 as amended by recent Finance Acts.

Is CTA Part 2 assessed online?

Yes. The Irish Tax Institute assesses CTA Part 2 through a combination of online exams and professional skills assignments, with two exam sittings per year (Summer and Winter courses).