Beneficial owners eligible for tax relief - Irish equities

24.07.2019

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.