Irish Revenue's eBrief No. 065/26 updates its guidance on outbound payments defensive measures, adding new provisions on the association test for Irish partnerships, clarifying that US Net CFC Tested Income tax qualifies as equivalent to a CFC charge, and expanding examples covering associated entities, investment limited partnerships, and tax-transparent fund structures.
Irish Revenue has released eBrief No. 065/26 on 30 March 2026, which updates the guidance about outbound payments defensive measures.
Tax and Duty Manual Part 33-05-01 has been updated as follows:
- New section 3.4.2 has been included concerning the application of the association test for Irish partnerships.
- New examples 3.4.3 and 3.4.4 have been included for associated entities and Irish partnerships.
- Updates concerning association via individual(s), now included in section 3.4.5, and new examples are included.
- Guidance and examples in section 3.8 “Excluded payment” have been updated to confirm that Net CFC Tested Income tax (NCTI) under US tax law is considered to be similar to the controlled foreign company charge for the purposes of the outbound payment defensive measures.
- The text in “5.1.2 – Example – payments to tax transparent entities, generally” has been updated.
- The text in “5.1.4 Example – fund structure” has been updated.
- A new section “5.1.5” has been included with examples concerning Investment Limited Partnerships.
A number of other minor amendments have been reflected throughout the TDM.
Irish outbound payments defensive measures are tax rules designed to prevent double non-taxation by ensuring that certain payments made from Ireland are subject to tax. These measures primarily work by disapplying existing withholding tax (WHT) exemptions on payments of interest, royalties, and dividends made by Irish companies to associated entities in specified territories.
