On 11 April 2024, the Irish Revenue issued eBrief No. 119/24 regarding to the updates on the tax and duty manuals related to the new outbound payments defensive measures. The outbound payments defensive measures are included in the Finance (No.2) Act 2023.
As previously reported, the Finance (No.2) Act 2023 inserted Chapter 5 outbound payments defensive measures in Part 33 of the Taxes Consolidation Act 1997 (TCA 1997).
The Chapter provides for the implementation of defensive measures, by way of withholding taxes, on outbound payments of interest and royalties, and on the making of distributions, in certain circumstances. The measures apply to payments or distributions by Irish resident companies, or payments by Irish branches of non-resident companies, to associated entities who are resident, or situated, in specified territories. The defensive measures are intended to prevent double non-taxation. A new Tax and Duty Manual (TDM) Part 33-05-01 was issued on 26 March 2024 which provides guidance on the defensive measures.
The following Tax and Duty Manuals have been revised to reflect the new measures:
- Part 02-02-01 ‘Corporation Tax: General Background – Dividends and Portfolio Investors’.
- Part 06-04-02 ‘Distributions out of certain exempt profits or gains or out of certain relieved income.’
- Part 06-08A-01 ‘Dividend Withholding Tax (DWT) – Details of Scheme.’
- Part 06-08B-01 ‘Technical Guidance notes in relation to the operation of Dividend Withholding Tax.’
- Part 08-01-04 ‘Treatment of Certain Patent Royalties Paid to Companies Resident Outside the State.’
