Taxes Consolidation Act, 1997 (Number 39 of 1997)
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153 Distributions to non-residents.
[CTA76 s83(4); FA92 s38(2); FA94 s27(a); FA95 s39]
(1) Where for any year of assessment the income of a person who for that year is neither resident nor ordinarily resident in the State includes an amount in respect of a distribution made by a company resident in the State—
(a) the liability of the person to income tax in respect of the distribution shall be reduced by the amount by which that liability, before it is reduced by the tax credit (if any) in respect of the distribution, exceeds the amount (which may be nil) of that tax credit, and
(b) the amount or value of the distribution shall be treated for the purposes of sections 237 and 238 as not brought into charge to income tax.
(2) The Revenue Commissioners may by notice in writing require a company which has made a distribution to furnish them, within such time as they may direct, with such particulars as they consider necessary to identify persons benefiting from subsection (1).
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153 Distributions to certain nonresidents.
(1) In this section—
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“non-resident person”, in relation to a distribution, means the person beneficially entitled to the distribution, being—
(a) a person, other than a company, who—
(i) is neither resident nor ordinarily resident in the State, and
(ii) is, by virtue of the law of a relevant territory, resident for the purposes of tax in the relevant territory,
or
(b) a company which is not resident in the State and—
(i) is under the control, whether directly or indirectly, of a person or persons who, by virtue of the law of a relevant territory, is or are resident for the purposes of tax in such a relevant territory and who is or are, as the case may be, not under the control, whether directly or indirectly, of a person who is, or persons who are, not so resident, or
(ii) the principal class of the shares of—
(I) the company, or
(II) another company of which the company is a 75 per cent subsidiary,
is substantially and regularly traded on one or more than one recognised stock exchange in a relevant territory or territories or on such other stock exchange as may be approved of by the Minister for Finance for the purposes of this section;
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“qualifying non-resident person”, in relation to a distribution, means the person beneficially entitled to the distribution, being—
(a) a person, other than a company, who—
(i) is neither resident nor ordinarily resident in the State, and
(ii) is, by virtue of the law of a relevant territory, resident for the purposes of tax in the relevant territory,
or
(b) a company which is not resident in the State and—
(i) is, by virtue of the law of a relevant territory, resident for the purposes of tax in the relevant territory, but is not under the control, whether directly or indirectly, of a person or persons who is or are resident in the State,
(ii) is under the control, whether directly or indirectly, of a person or persons who, by virtue of the law of a relevant territory, is or are resident for the purposes of tax in the relevant territory and who is or are, as the case may be, not under the control, whether directly or indirectly, of a person who is, or persons who are, not so resident, or
(iii) the principal class of the shares of which, or—
(I) where the company is a 75 per cent subsidiary of another company, of that other company, or
(II) where the company is wholly-owned by 2 or more companies, of each of those companies,
is substantially and regularly traded on one or more than one recognised stock exchange in a relevant territory or territories or on such other stock exchange as may be approved of by the Minister for Finance for the purposes of this section;
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“relevant territory” means—
(a) a Member State of the European Communities other than the State, [12]>or<[12]
(b) not being such a Member State, a territory with the government of which arrangements having the force of law by virtue of [10]>section 826<[10][11]>[10]>section 826(1)(a)<[10]<[11][11]>section 826(1)<[11] [13]>have been made;<[13][13]>have been made, or<[13]
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(c) not being a territory referred to in paragraph (a) or (b), a territory with the government of which arrangements have been made which on completion of the procedures set out in section 826(1) will have the force of law;
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“tax”, in relation to a relevant territory, means any tax imposed in that territory which corresponds to income tax or corporation tax in the State.
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(1A) For the purposes of paragraph (b)(i) of the definition of “qualifying non-resident person”, “control” shall be construed in accordance with subsections (2) to (6) of section 432 as if in subsection (6) of that section for “5 or fewer participators” there were substituted “persons resident in the State”.
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(2) For the purposes of [4]>paragraph (b)(i) of the definition of “non-resident person”<[4][4]>paragraph (b)(ii) of the definition of “qualifying non-resident person”<[4] in subsection (1), “control” shall be construed in accordance with subsections (2) to (6) of section 432 as if in subsection (6) of that section for “5 or fewer participators” there were substituted—
(a) in so far as the first mention of “control” in that paragraph is concerned, “persons who, by virtue of the law of a relevant territory (within the meaning assigned by section 153), are resident for the purposes of tax in such a relevant territory (within that meaning)”, and
(b) in so far as the second mention of “control” in that paragraph is concerned, “persons who are not resident for the purposes of tax in a relevant territory (within that meaning)”.
(3) For the purposes of [5]>paragraph (b)(ii)(II) of the definition of “non-resident person”<[5][5]>paragraph (b)(iii)(I) of the definition of “qualifying non-resident person”<[5] in subsection (1), sections 412 to 418 shall apply as those sections would apply for the purposes of Chapter 5 of Part 12 if [6]>subparagraph (iii) of<[6]section 411(1)(c) were deleted.
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(3A) For the purposes of paragraph (b)(iii)(II) of the definition of “qualifying non-resident person”, a company (in this subsection referred to as an “aggregated 100 per cent subsidiary”) shall be treated as being wholly-owned by 2 or more companies (in this subsection referred to as the “joint parent companies”) if and so long as 100 per cent of its ordinary share capital is owned directly or indirectly by the joint parent companies, and for the purposes of this subsection—
(a) subsections (2) to (10) of section 9 shall apply as those subsections apply for the purposes of that section, and
(b) sections 412 to 418 shall apply with any necessary modifications as those sections would apply for the purposes of Chapter 5 of Part 12 if—
(i) section 411(1)(c) were deleted, and
(ii) the following subsection were substituted for subsection (1) of section 412:
“(1) Notwithstanding that at any time a company is an aggregated 100 per cent subsidiary (within the meaning assigned by section 153(3A)) of the joint parent companies (within the meaning so assigned), it shall not be treated at that time as such a subsidiary unless additionally at that time—
(a) the joint parent companies are between them beneficially entitled to not less than 100 per cent of any profits available for distribution to equity holders of the company, and
(b) the joint parent companies would be beneficially entitled between them to not less than 100 per cent of any assets of the company available for distribution to its equity holders on a winding-up.”.
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(4) Where for any year of assessment the income of a person who for that year of assessment is a [8]>non-resident person<[8][8]>qualifying non-resident person<[8] includes an amount in respect of a distribution made by a company resident in the State—
(a) income tax shall not be chargeable in respect of that distribution, and
(b) the amount or value of the distribution shall be treated for the purposes of sections 237 and 238 as not brought into charge to income tax.
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(4A)Subsection (4) shall not apply to a property income dividend (within the meaning of section 705A).
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(5) Where, by virtue of section 831(5), Chapter 8A of Part 6 (other than section 172K) does not apply to a distribution made to a parent company (within the meaning of section 831) which is not resident in the State by its subsidiary (within the meaning of that section) which is a company resident in the State—
(a) income tax shall not be chargeable in respect of that distribution, and
(b) the amount or value of the distribution shall be treated for the purposes of sections 237 and 238 as not brought into charge to income tax.
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(6) Where for any year of assessment the income of a person, being an individual who for that year of assessment is neither resident nor ordinarily resident in the State but is not a qualifying non-resident person, includes an amount in respect of a distribution made by a company resident in the State, then—
(a) notwithstanding section 15(2), income tax shall not be chargeable in respect of that distribution at a rate in excess of [16]>the standard rate<[16][16]>25 per cent<[16], and
(b) the amount or value of the distribution shall be treated for the purposes of sections 237 and 238 as not brought into charge to income tax.
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[1]
Substituted by FA99 s28(1). This section shall apply as respects distributions made on or after the 6th day of April, 1999.
[2]
Substituted by FA00 s31(a). Applies as respects distributions made on or after 6 April 2000.
[4]
Substituted by FA00 s31(c). Applies as respects distributions made on or after 6 April 2000.
[5]
Substituted by FA00 s31(d)(i). Applies as respects distributions made on or after 6 April 2000.
[6]
Deleted by FA00 s31(d)(ii). Applies as respects distributions made on or after 6 April 2000.
[8]
Substituted by FA00 s31(f). Applies as respects distributions made on or after 6 April 2000.
[10]
Substituted by FA04 sched3(1)(e). This section shall have effect as on and from 25 March 2004
[12]
Deleted by F(No.2)A08 s33(b)(i). This section is deemed to have come into force and takes effect as on and from 1 January 2009.
[13]
Substituted by F(No.2)A08 s33(b)(i). This section is deemed to have come into force and takes effect as on and from 1 January 2009.
[14]
Inserted by F(No.2)A08 s33(b)(ii). This section is deemed to have come into force and takes effect as on and from 1 January 2009.
[15]
Inserted by FA13 s41(a). Deemed to have come into force and takes effect on and from 1 January 2013.