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Ireland: Domestic Corporate Taxation

Withholding Tax

Until 1999, Ireland operated an Advance Corporation Tax (ACT) and tax credit system similar to that of the UK; but Ireland has followed the UK in abolishing both ACT and tax credits. The Finance Act 1999 introduced a withholding tax for dividends paid by all Irish companies except collective investment undertakings (UCITS) at the rate of 24%, reduced to 20% in 2007; however, dividends to EU 10% parents of Irish companies escape withholding tax under the parent/subsidiary directive. There are a number of other exemptions, subject to quite complex rules, but which in general terms exempt payments made to individuals and some companies in countries with which Ireland has double tax treaties.

Tax withheld from dividend payments has to be paid to the Collector General by the 14th day of the month following the month in which a distribution is made.

The Deposit Interest Retention Tax imposes a withholding tax of 33% (increased from 30% in 2012 and 27% in 2011) on all payments of interest made on deposits.

 

 

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