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

CHAPTER 9

Domestic Top-up Tax

Overview

Chapter 9 of Part 4A sets out the rules to determine what entities are in scope of domestic top-up tax and the calculation of the liability to domestic top-up tax.

111AAA Interpretation

Summary

This section provides definitions required for the operation of the domestic top-up tax.

Details

Definitions

(1) Introduces definitions relating to the operation of the domestic top-up tax:

“foreign IIR election” means an election made in respect of an MNE group in connection with a tax equivalent to IIR top-up tax or UTPR top-up tax in another jurisdiction that is contained in a top-up tax information return submitted to:

  1. a tax authority in that jurisdiction, and in relation to which information in the return about the election has been provided to the Revenue Commissioners under a qualifying competent authority agreement, or
  2. the Revenue Commissioners;

“local accounting standard” means a financial accounting standard permitted or required to be used in the preparation of financial accounts under the law of the State that is an:

  1. acceptable financial accounting standard; or
  2. authorised financial accounting standard adjusted to prevent material competitive distortions;

“qualifying entity” shall be construed in accordance with section 111AAB;

“standalone financial statements” means:

  1. financial statements of an entity prepared in accordance with a local accounting standard, or
  2. where no such statements were prepared, the statements that would have been prepared (whether or not the entity was required to prepare such statements) in accordance with a local accounting standard.

(2) Chapter 10 shall apply for the purpose of administering the charge to domestic top-up tax of a qualifying entity.

Relevant Date: Finance Act 2024