Revenue Note for Guidance

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Revenue Note for Guidance

Schedule 2A

[Section 172A]

Dividend Withholding Tax

This Schedule sets out the details of the declarations which must be furnished by non-liable persons to companies, qualifying intermediaries or, as the case may be, authorised withholding agents if such persons are to obtain exemption from the charge to dividend withholding tax (DWT) on relevant distributions imposed by Chapter 8A of Part 6.

The details of the required declarations differ slightly depending on the category of person involved, viz —

  • par 3 company resident in the State
  • par 4 pension scheme
  • par 4A qualifying fund manager or qualifying savings manager
  • par 5 qualifying employee share ownership trust
  • par 6 collective investment undertaking
  • par 6A persons entitled to exemption from income tax under Schedule F
  • par 7 charity
  • par 7A approved athletic or amateur sports body
  • par 7B designated stockbroker operating special portfolio investment account
  • par 8 qualifying non-resident person, not being a company
  • par 9 qualifying non-resident person, being a company
  • par 10 PRSA administrator
  • par 11 exempt unit trust.

In particular, it should be noted that a declaration made by a non-resident person (not being a company) must (paragraph 8(f) refers) be accompanied by a certificate of tax residence from the tax authority in the country of the person’s residence. This certificate is (paragraph 2 refers) effective only for the period from the date of issue until 31 December in the fifth year following the year in which the certificate was issued. Consequently, if title to exemption from DWT is to be maintained, the certificate will have to be renewed at the end of such period.

With regard to relevant distributions received by non-resident companies from Irish resident companies on or after 3 April 2010 the requirement to include a non-resident and/or an auditor’s certificate with an appropriate declaration of entitlement to exemption is removed. Instead non-resident companies need only provide a current declaration and certain information to the dividend paying company or intermediary to claim exemption from DWT in accordance with paragraph 9. The declaration must be a current declaration within the meaning of paragraph 2A at the time of the making of the relevant distribution. Declarations/certificates provided by qualifying non-resident companies before 3 April 2010 for the purposes of claiming exemption from DWT will remain valid until their current expiry date has passed.

In addition, if the qualifying non-resident person is a trust, the declaration must (paragraph 8(g) refers) be accompanied by a certificate signed by the trustee or trustees of the trust showing the names and addresses of the beneficiaries and settlors of the trust and a written notice from the Revenue Commissioners stating that they have noted the contents of the certificate.

Relevant Date: Finance Act 2021