Beneficial owners eligible for tax relief - Irish equities
The following types of beneficial owner are recognised in Ireland as eligible for obtaining tax relief on dividends:
- Qualifying non-resident persons;
- Excluded Irish persons;
To apply for tax relief at source, the direct customer of Clearstream Banking must:
- be the beneficial owner of the Irish equities and qualify as non-resident person or excluded Irish person; OR
- be authorised as Qualifying Intermediary (QI) by the Irish Revenue Commissioners and holds Irish equities on behalf of qualifying non-resident persons or excluded Irish persons, or on behalf of an underlying intermediary also authorised as QI and holding Irish equities on behalf of qualifying non-resident persons or excluded Irish persons.
The following main categories of beneficiaries are considered as being qualifying non-resident persons:
- an individual or an unincorporated entity which is neither resident nor ordinarily resident in Ireland, but resident in another EU Member State or in a Double Taxation Treaty (DTT) country for tax purposes;
- a company resident in another EU Member State or in a DTT country that is not controlled, either directly or indirectly, by Irish residents;
- a company (not resident in Ireland) ultimately controlled by residents of another EU Member State or of a DTT country;
- a company of which the principal class of shares (either belonging to a 75% parent, or to two or more companies by which the company is wholly-owned) is substantially and regularly traded on a recognised stock exchange in another EU Member State or in a DTT country, or on such other exchange as may be approved of by the Minister of Finance;
- companies that are wholly owned by two or more companies, each of whose principal class of shares are substantially and regularly traded on one or more recognised stock exchanges in a relevant territory.
The following main categories of beneficiaries are considered as being excluded Irish persons:
- an Irish resident company;
- a pension scheme;
- manager of approved retirement funds, approved minimum retirement funds and special savings incentive accounts;
- a qualifying employee share (ownership) trust;
- a collective investment undertaking;
- a charity;
- a sports body that has been granted exemption from tax by The Revenue;
- a designated stockbroker who is receiving relevant distributions as part of the income of a special portfolio investment account;
- a qualifying fund manager who is receiving relevant distributions as income arising in respect of assets held in an approved retirement fund (ARF);
- Irish Exempt Unit trusts;
- Irish Person Retirement Savings Account administrators;
- certain other persons resident in Ireland.
The complete lists and further details are available on The DWT Technical Guidance Notes.