Updated guidance on Outbound Payments Defensive Measures published

Revenue has published updated guidance on the Outbound Payments Defensive Measures. The new guidance provides additional detail and clarification on the application of the measures, including information on the ‘association’ test.

The updated sections of the guidance are as follows:

• A new section 3.4.2 has been included concerning the application of the association test for Irish partnerships,
• New examples relating to associated entities and Irish partnerships are included in sections 3.4.3 and 3.4.4,
• Section 3.4.5 now includes updates concerning association via individual(s), and new examples are also included,
• Section 3.8 includes updated guidance and examples to confirm that Net CFC Tested Income tax (NCTI) under US tax law is regarded as similar to the controlled foreign company charge for the purposes of the outbound payment defensive measures,
• The text relating to the examples in section 5.1.2 and in section 5.1.4 have been updated, and
• A new section 5.1.5 has been included with examples concerning Investment Limited Partnerships.

Several other minor amendments have been reflected throughout the guidance.