Revenue Note for Guidance

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Revenue Note for Guidance

63 Exemption of dividends of non-residents


A person who establishes to the satisfaction of the Revenue Commissioners that he/she is not resident in the State is not chargeable to tax in respect of income arising from foreign dividends payable in the State.



(1)(a) Exemption from tax is provided for foreign dividends payable in the State provided it is proved to the satisfaction of the Revenue Commissioners that the person owning the stocks, shares, funds or securities and entitled to the income arising from them is not resident in the State. Subject to any exception in the Income Tax Acts (in this regard see subsection (2)), no allowance or repayment is to be made for tax on such foreign dividends which are payable in the State.

(1)(b) In the case of stock, funds, shares or securities giving rise to such foreign dividends held under a trust, where the person who is the beneficiary in possession under the trust is the sole beneficiary in possession and can, by means either of revocation of the trust or of the exercise of any power under the trust, request the trustees at any time to transfer the stock, funds, shares or securities to that person absolutely free from any trust, that person is deemed for the purpose of this section to be the person owning the stock, funds, shares or securities.

(2) On a claim being made the exemption under this section may be given by way of allowance or repayment.


(3) & (4) There is a right of appeal to the Appeal Commissioners on any decision of the Revenue Commissioners as to a person’s residence status. Any appeal must be made within 2 months of the date on which notice of the decision is given and is to be heard and determined by the Appeal Commissioners in the same way as an appeal against an assessment to income tax is heard and determined. The provisions relating to the rehearing of an appeal and to the statement of a case for the opinion of the High Court on a point of law also apply.

Relevant Date: Finance Act 2021