On 20 October 2016, Finance Bill 2016 was published. The most important of those measures are summarized below:
Corporate tax
A 20% withholding tax (WHT) deduction on property distribution to non-resident investors will be imposed on IREFs. The WHT will not apply to certain categories of investors, such as pension funds.
The Bill will bring Irish legislation in line with the second and third extensions of the Mutual Assistance Directive (2011/16). The second extension regulates information exchange concerning cross-border rulings and advance pricing agreements (APAs) with other EU Member States. The third extension requires all EU Member States to implement country-by-country reporting.
Individual income tax
A technical amendment will be introduced in order to allow sports persons’ contributions to Pension Retirement Savings Accounts to qualify for tax relief in the same way as contributions to other pension products.
Pensions
PRSA benefits will start on the holder’s 75th birthday, thus closing off certain tax planning opportunities.
Capital gains tax
Non-resident trusts set up for bona-fide commercial reasons will not be subject to the anti-avoidance provisions of sections 579 and 579A of the Taxes Consolidation Act (TCA). This is a response to the EU Commission’s concerns that such sections were against EU law.
