Finance Bill 2019 Dividend Withholding Tax system

Oct 21, 2019
The rate of dividend withholding tax (DWT) will increase from the standard rate of income tax of 20 percent to a rate of 25 percent from 1 January 2020.  This increase was announced on Budget day along with the introduction of a new DWT regime from 1 January 2021.  A public consultation on how the new dividend withholding tax (DWT) regime will work is now opened.  

Section 23 of the Bill amends section 172A of the Taxes Consolidation Act 1997 to provide for the increase in the DWT rate. 

Details on the new regime are not included, a public consultation is underway on how this regime might work.   We reported on this consultation in Tax eNews earlier this month.  We expect to engage with Revenue thought the TALC forum on development of this new regime and we will keep you informed.