CHAPTER 3

Exemptions

Overview

Chapter 3 provides for the exemptions to the CFC charge arising under Chapter 2.

835T Effective tax rate exemption

Summary

Section 835T provides for an exemption from the CFC charge where the tax paid by the CFC in its own jurisdiction is not less than half the aggregate of the corresponding corporation tax and corresponding QDTT in the State.

Details

(1) & (2) The CFC charge shall not apply to an accounting period of a CFC where the aggregate of the foreign tax and the foreign QDTT paid, payable or borne by the CFC is equal to or greater than the difference between the aggregate of the corresponding Irish corporation tax and corresponding QDTT and the aggregate of the foreign tax and foreign QDTT.

(3) The amount of foreign tax which is paid by a CFC shall be determined in accordance with the requirements set out under section 835N (Adjustments to amount of foreign tax).

(4) Any amount of foreign tax or foreign QDTT that falls to be repaid to the CFC or any other person upon the making of a claim and any amount of foreign QDTT, where payable is not paid, shall be excluded.

Relevant Date: Finance Act 2024