Revenue Note for Guidance

The content shown on this page is a Note for Guidance produced by the Irish Revenue Commissioners. To view the section of legislation to which the Note for Guidance applies, click the link below:

Revenue Note for Guidance

172FA Recognised Qualifying Intermediaries

Summary

This section provides special measures to deal with the common situation where distributions are made through a qualifying intermediary who is also a recognised clearing system.

To be a recognised qualifying intermediary, a person must be a qualifying intermediary that is also a recognised clearing system within the meaning in section 246A(2)(a) or a person wholly owned by a recognised clearing system, within the meaning in section 246A(2)(a).

Since a recognised qualifying intermediary, must be a qualifying intermediary it must —

  • be resident for tax purposes in the EU or in a tax treaty country,
  • enter into a qualifying intermediary agreement with Revenue, and
  • be authorised by Revenue as a qualifying intermediary.

In addition, the intermediary must —

  • hold (or be wholly owned by a person who holds) a banking licence in an EU Member State or a tax treaty country,
  • be a member of a recognised stock exchange in the EU or in a tax treaty country, or
  • be a person whom Revenue considers suitable to be a qualifying intermediary.

A recognised qualifying intermediary is subject to the obligations of a qualifying intermediary as set out in the guidance notes to section 172F.

Details

Recognised qualifying intermediary – conditions

(1) A number of conditions must be satisfied if a person is to be a recognised qualifying intermediary. Firstly, the person must be a qualifying intermediary and must therefore satisfy the conditions to be a qualifying intermediary as set out in the guidance notes to section 172E. Secondly, the person must also be a recognised clearing system, within the meaning of section 246A(2)(a) or a person who is wholly owner by a recognised clearing system, within the meaning in section 246A(2)(a). These systems are listed in the definition in section 246A.

Exemption from DWT for relevant distributions received by recognised qualifying intermediaries

(2) DWT does not apply where relevant distributions are received by a recognised qualifying intermediary and paid to an authorised withholding agent or another recognised qualifying intermediary, so long as the recognised qualifying intermediary has obtained a notice in writing from the authorised withholding agent or the other recognised qualifying intermediary that it is an authorised withholding agent or a recognised qualifying intermediary in relation to those distributions.

Relevant Date: Finance Act 2021