Revenue Note for Guidance
This section provides for an exemption from DWT for relevant distributions made by a company resident in the State to a person who is beneficially entitled to the distributions and is within one of the following categories —
To qualify for exemption, the person must have made the appropriate declaration of entitlement to exemption as set out in Schedule 2A. The declaration must be made to the company making the distribution in the case where the person receives the distribution directly from the company. Where, however, the person receives the distribution through one or more than one qualifying intermediary, or through an authorised withholding agent, the declaration must be made to the qualifying intermediary or the authorised withholding agent from whom the person receives the distribution made by the company.
(1) The charge to DWT does not apply where an Irish resident company makes a relevant distribution to an excluded person.
(2) An excluded person is a person beneficially entitled to the relevant distribution, being one of the persons listed in the summary, who or which has made to the relevant person (the company making the distribution or the qualifying intermediary or authorised withholding agent from whom that distribution is received) the appropriate declaration referred to in Schedule 2A.
(3) The exemptions provided by this section are predicated on the recipient of the relevant distribution being beneficially entitled to the distribution. The exemption provided to designated stockbrokers is intended to apply to stockbrokers operating special portfolio accounts. Such brokers are not themselves beneficially entitled to relevant distributions received in respect of such accounts; rather the beneficial owner of the distributions is the individual on whose behalf the broker is operating the account. Similar considerations apply in the case of a distributions received by a collective investment undertaking, a qualifying fund manager, a qualifying savings manager, a PRSA administrator, an exempt unit trust and the trustees of a qualifying trust. Accordingly, in order to allow such persons to make the appropriate declaration of exemption to the relevant person and thus receive relevant distributions without deduction of DWT, such persons are treated as being beneficially entitled to the relevant distributions.
Relevant Date: Finance Act 2021