Payment and Receipt of Interest without Deduction of Income Tax

Revenue's Tax and Duty Manual Part 08-03-06. which provides guidance on when interest payments can be paid without deduction of withholding tax, as otherwise required by Section 246 TCA 1997, has been updated to:

• Confirm that no withholding tax need be operated on interest payments to the European Investment Bank; and
• Provide guidance on when Revenue will use its powers under Section 246(3)(d) TCA 1997 to issue authorisations to companies to pay interest without the deduction of withholding tax in cases where a bank has assigned or novated a loan to a non-banking entity.

12 April 2016