Dividend Withholding Tax Guidance, 10 February 2020

Feb 10, 2020

Revenue’s Dividend Withholding Tax (DWT) guidance has been updated to account for the changes brought in by Finance Act 2019.  The changes include the increase in the rate of DWT to 25 percent.  

The guidance (06-08A-01) is also updated to reflect the requirement that from 1 January 2021 the company or intermediary that pays the relevant distribution shall obtain and keep a record of the "tax reference number" of the person(s) beneficially entitled to the relevant distribution. 

The manual has also been subject to a minor change to update the reference to the rate of interest for overdue DWT. 

DWT is due to move to a real time system from 2021.  We responded to Revenue’s consultation on the proposed new system and we will be engaging with Revenue through TALC on the development of this system. 

TaxSource and TaxSource Total will be updated shortly to include amendments made by Finance Act 2019, amendments by other Acts of the Oireachtas, up to date Revenue guidance and relevant case law.