Companies registered in Ireland are required to pay a set of
withholding taxes, as imposed under the applicable legislation. The
withholding taxes are applied on a different
taxation scheme in accordance with the residency of the respective
companies. Investors who want to
open a company in Ireland should know that if the respective business will qualify as a
resident company, it will no longer be required to pay a
withholding tax on dividends.
Our team of specialists in company formation in Ireland can offer an in-depth presentation on the main regulations available for
withholding taxes.
Paying withholding taxes in Ireland
The withholding taxes in Ireland are applicable to resident and non-resident companies, as well as on resident natural persons. The withholding taxes are applicable for the following:
• interest;
• patents;
• royalties.
The applicable rate for
withholding taxes in Ireland is set up at 20%, the only exception being made for the
payment of dividends paid by
resident companies, which are exempted from this
tax.
Foreign investors interested in
company formation should know that the exemption is available for recipient
Irish resident companies, but also for
non-resident companies which qualify under the
Patent- Subsidiary Directive, on which
our team of Irish company formation agents can offer more details.
Exemptions from paying the withholding tax in Ireland
When discussing about the withholding tax on dividends in Ireland, there are several exemptions which can apply, provided that all the requirements are completed by the recipient.
Investors interested in the procedure of
company registration in Ireland must know that they can be exempted from paying the
withholding tax on dividends if they are the direct beneficiaries of one of the
double taxation treaties signed by the
Irish authorities.
Thus,
non-resident companies which are registered in one of the European Union’s member states, as well as those with which
Ireland has signed a
treaty for the avoidance of double taxation are entitled to the exemption from the
withholding tax on dividends. The regulation is applicable as long as the respective
company is not managed by
Irish residents.