Standard refund - eligibility, documentation, deadlines - Irish equities

25.07.2019

Standard refund - Overview

A reclaim of withholding tax is available if the beneficial owner is:

  • a qualifying non-resident of Ireland and could not apply for relief at source; or
  • qualifies for the benefit of a reduced rate of withholding tax in accordance with a Double Taxation Treaty (DTT) between its country of residence and Ireland.

A customer can reclaim withholding tax on behalf of the beneficial owner through Clearstream Banking by submitting the appropriate required documentation.

Residents of Ireland cannot reclaim withholding tax through Clearstream Banking.

Who can apply for a standard refund?

Eligible beneficial owners

Effective rate of tax after refund

Tax refund
available

Residents of Double Taxation Treaty (DTT) countries

Tax treaty rate or 20%, whichever is lower

20% minus the tax treaty rate

Qualifying non-residents

0%

20%

Standard refund - Documentation requirements

The documents to be submitted to Clearstream Banking by the prescribed deadlines in order to apply for a standard refund of withholding tax on dividends from Irish equities are as follows.

There are different documentation requirements depending on whether the beneficial owner is:

A resident of a DTT country not entitled to full refund under Irish domestic law:

  • Claim from or on behalf of Certain Non-resident Persons for Refund of DWT;
  • Credit Advice;
  • Power of Attorney;
  • Letter of Request to Clearstream Banking for Reclaim of Irish Withholding Tax.

A qualifying non-resident (individual, company or body of persons) entitled to full refund of withholding tax:

  • Exemption from DWT for a qualifying Non-Resident;
  • Claim from or on behalf of Certain Non-resident Persons for Refund of DWT;
  • Credit Advice;
  • Power of Attorney;
  • Letter of Request to Clearstream Banking for Reclaim of Irish Withholding Tax;
  • Request for Refund of Stamp Duty.

Statutory deadline for reclaiming withholding tax

The statutory deadline for reclaiming withholding tax using the standard procedure is four years following the end of the year in which the income payment was made.

Clearstream deadline for standard refund applications

The deadline by which Clearstream Banking must receive the documentation for a standard refund application is at the latest two months before the statutory deadline. All standard refund applications received after this deadline will be processed by Clearstream Banking on a "best efforts" basis. However, in such a case, Clearstream Banking will apply an extra charge and accepts no responsibility for forms that have not reached the Irish Tax Authorities by the date considered being the statute of limitations deadline.

When are refunds received?

The estimated time for receiving a refund from a standard refund application is four months from the date of receipt by the Irish Tax Authorities, although this can vary depending on when the application is filed, and the complexity of the information supplied in the reclaim form.