I was discussing with a new client today the new process for non-resident corporate shareholders to receive dividends from their Irish subsidiary. The latest Finance Bill has simplified the process of paying dividends free of Irish witholding tax, currently at 20% of the gross dividend.

Providing the non-resident company is located either in the EU (except for Ireland) or a double tax treaty country – DTT (of which there are currently 48 in force)  and a declaration has been made in the prescribed format then it is possible to pay dividends in this way.

How the dividends are then taxed in the recipients country of residence depends on the tax laws of that country.

If you would like assistance with this process either in Ireland and/or in the recipient country See O’Mahony Donnelly contact details.

We can also introduce you to one of our associated firms in Enterprise Worldwide who can assist with advice in the parent company’s country.

Tags: Dividend Witholding Tax, Dividend Witholding Tax Exemption, dividends, double tax treaty, double tax treaty country, Enterprise Worldwide, Finance Bill, Irish subsidiary, Irish witholding tax, non-resident company, Non-Resident Corporate Shareholders, parent company's

This entry was posted on Monday, May 24th, 2010 at 23:20 and is filed under Taxation. You can leave a response, or trackback from your own site.