Double Taxation Agreements

Ireland has a double taxation agreement with 74 countries, of which 73 are in effect. These comprehensive double taxation agreements are bilateral agreements made between Ireland and other countries where the treaty exists to resolve the issue of double taxation and ensure that income that has been taxed in one country is not taxed again in another country.

The double taxation agreements cover direct taxes which in Ireland include:

• Income Tax
• Corporation Tax
• Universal Social Charge
• Capital Gains Tax

The countries that Ireland has a double taxation agreement are:

Ireland is currently working with the following countries to negotiate new Double Tax Treaties and update existing ones:

• Ghana – A tax treaty with Ghana was signed on 7^th February 2018. However, the Double Taxation Agreement (DTA) has still not yet come into effect.
• The Netherlands – A new tax treaty between Ireland and the Netherlands entered into force on 29^th February 2020 and replaced the existing DTA between the two countries. The provisions of this tax treaty entered into effect on January 1^st, 2021.
• Switzerland – The current protocol to the existing DTA & Amending Protocols between Ireland & Switzerland entered into force on 21^st October 2020 and, its provision entered into effect on 1^st Jan 2021.
• Germany – On 19^th January 2021, Ireland & Germany signed a protocol to amend the existing Double Tax Treaty & Amending Protocol between the two countries.
• Kenya/ Kosovo/ Oman – Negotiations regarding Double Tax Treaties have concluded with Kenya, Kosovo, Oman & Uruguay and the new agreements are expected to be signed shortly.
• Guernsey/ Isle of Man/ Mexico – Negotiations have concluded on protocols to exiting tax treaties with Guernsey, Isle of Man & Mexico.
• Argentina/ Jordan/ Taiwan/ Tunisia – No double taxation agreement is currently in place but Ireland is working to negotiate treaties with Argentina, Jordan, Taiwan & Tunisia.

Where a double taxation agreement does not exist with a particular country there are provisions in the Irish Taxes Consolidation Acts (TCA) 1997 which allow unilateral relief against double taxation in respect of certain types of income. The principal provisions granting unilateral relief include:

• Dividends from foreign subsidiaries.
• Credit for withholding tax on dividend payments and for foreign tax paid on the underlying profits out of which the dividends were paid (paragraph 9A and B of Schedule 24 TCA 1997).
• Pooling and carry-forward of excess foreign tax credits (paragraph 9E of Schedule 24 TCA 1997).
• Credit for foreign tax on dividends paid by a foreign company that is a member of a group that paid tax on a consolidated basis (paragraph 9G of Schedule 24 TCA 1997).

For more information on the above Double Taxation Agreements including the benefits of registering a company in Ireland please don’t hesitate to contact us today. Our team would be happy to assist you.

Contact us today for more information