208A Overseas charities

Summary

This section, which applies from 1 January 2010, allows a charity established in any EEA or EFTA State to apply to the Revenue Commissioners for a determination that it would qualify for the tax exemptions provided for by section 207 or 208, if it were to have income in the State of a kind referred to in those sections. Essentially this is rental and other investment income, for example, interest and dividends, and trading profits. Where the Revenue Commissioners are satisfied that either of these exemptions would apply in those circumstances, they will issue a notice of determination to the charity to that effect.

The receipt of a notice will, in turn, permit the charity, after a period of 2 years, to seek an authorisation under Part 3 of Schedule 26A for the purposes of accessing the donations relief scheme under section 848A. This 2-year waiting period already applies to domestic charities that have an exemption under section 207. Therefore, the treatment of domestic and overseas charities are the same in that regard.

Details

Definitions

(1) The following definitions apply for this section and section 208B:

“charity” means any body of persons or trust established for charitable purposes only.

“EEA Agreement” means the Agreement on the European Economic Area signed at Oporto on 2 May 1992, as adjusted by all subsequent amendments to that Agreement.

“EEA state” means a state, other than the State, which is a contracting party to the EEA Agreement.

“EFTA state” means a state, other than an EEA state, which is a Member State of the European Free Trade Association.

Claim

(2) A person or trust established in an EEA or EFTA State may, on a claim to the Revenue Commissioners, seek a determination to the effect that it would qualify for the exemptions provided for by section 207 or 208 if it were to have income in the State of a kind referred to in those sections.

Determination

(3) A claim referred to in subsection (2) must be determined by the Revenue Commissioners or an officer authorised by them for that purpose.

Notice of Determination

(4) Where it is determined that the person or trust would qualify for the exemptions provided for by section 207 or 208 if it had income in the State of a kind referred to in those sections, the Revenue Commissioners, or an officer authorised by them for the purpose of determining a claim, must issue the person or trust with a notice of determination.

Verification & proof of claims

(5) Claims under this section must be verified by affidavit or an equivalent sworn statement, and proof of the claim may be given by the treasurer, trustee or any duly authorised agent.

Relevant Date: Finance Act 2021