Revenue Tax Briefing

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Revenue Tax Briefing Issue 15, July 1994

Professional services - Withholding Tax - Contracts Performed Abroad by Non-Residents

The strict position is that withholding tax applies to all payments for professional services made by accountable persons. However, the Revenue Commissioners have accepted that withholding tax need not be deducted from payments by a foreign-based branch or agency of an Irish resident company which is an accountable person, where:

  1. the payment is made abroad by the branch,
  2. the payment is for professional services provided abroad to the branch, and
  3. the person providing the professional service (the payee) is resident abroad

The legislation does not provide for a clearance mechanism for recipients resident in tax treaty countries.