Company Formation Ireland
Articles

Dividend Tax in Ireland

Updated on Monday 09th May 2016

Rate this article
5 5 1
based on 0 reviews


Dividend-Tax-in-IrelandWhat is the Irish withholding tax on dividends?

The dividend withholding tax is applied at a standard rate of 20% for dividend payments and other distributions made by companies registered in Ireland. Most Irish companies will pay dividends twice a year and the withholding tax will apply at source on the gross dividend. Irish individual shareholders will be levied the tax on the gross dividend at the marginal rate, but they are entitled to a credit for the withholding tax and a refund if the withheld amount exceeded their tax liability. However, there are also exceptions when it comes to the Irish withholding tax on dividends and these are:

  • - lower or 0% withholding tax for distribution of dividends if Irish double taxation agreements are enforced,
  • - the dividend tax does not apply if the distribution is made to a holding company where the majority shareholder is an Irish tax resident company.

Irish residents exempt from paying the dividend tax

Certain citizens or Irish companies are exempt from paying the withholding tax on dividends, according to several sections in the Tax Consolidation Act. Among these are:

  • - pensions schemes,
  • - employees qualifying in share ownership trusts (ESOTs),
  • - charitable organization,
  • - collective investment companies,
  • Irish tax resident companies,
  • - brokers designated by the Special Portfolio Investment Account (SPIAs),
  • - entities promoting games or sports,
  • - fund managers qualifying for the Approved Retirement Funds or Approved Minimum Retirement Funds provisions,
  • - individuals falling under the regulations of Schedule F in the Irish Income Tax Act.

Our specialists in company in formation provide accounting services for both local and foreign companies in Ireland.

Non-residents exempt from paying the dividend tax in Ireland

Foreign individuals, residents of countries Ireland has double tax treaties with, but also non-resident charity organizations are exempt from paying the dividend tax. Foreign companies registered in a EU country that are not controlled by Irish citizens and non-resident companies that own 75% in an Irish subsidiary are also exempt from paying the dividend tax. Irish companies listed on the Stock Exchange of an EU country that have been approved by the Minister of Finance also qualify for exemption from paying the withholding tax on dividends.

For complete details about the Irish tax system you can rely on our consultants in company formation. You can also contact us for details about tax incentives available for foreign investors.

 

Comments

There are no comments

Comments & Requests


Please note that client queries should NOT be posted here but sent through our Contact page.

Meet us in Dublin

Call us now at +353 1 6461625  to set up an appointment with our lawyers in Dublin, Ireland. Alternatively you can incorporate your company without traveling to Ireland. All our clients beneficiate from the joint expertize of local lawyers and international consultants. 

We offer:

- cost-efficiency: competitive company formation prices;

- prompt response to your inquiry (maxim 24 hours);

- free and complete legal information featured on our site, at your disposal.

Tax Calculator

tax-calculator-ireland

Testimonials

Francesco-Dagnino.jpg

I worked with colleagues at IrelandCompanyFormation.com on numerous occasions and every time I was very pleased with their company formation services.

Francesco Dagnino, Partner of
Lexia Avvocati
www.LawyersItaly.eu

Read more testimonials

We Recommend ClientPedia

This website is marketed by ClientPedia

Banner-Promoting ClientPedia-244px.jpg

We accept online payments

paypal-logo.png