General information – types of securities, deadlines, other market specifics – Ireland

Types of securities

The eligible securities issued in Ireland are as follows:

• Corporate bonds (eligible in Euroclear Bank);
• Government bonds (eligible in Euroclear Bank);
• Equities (eligible in Euroclear Bank)

Withholding tax

1. Debt securities - Overview

a. Withholding tax (at a rate of 20%) does not apply if the conditions of the ‘quoted Eurobond’ exemption are met or if another exemption (wholesale debt exemption) applies.

2. Equities - Overview

a. Different taxation rules and level of service applies to the distributions by the Irish Real Estate Investment Trusts (REITs). Please refer to the below point 3.

b. The Irish withholding tax relief at source service is restricted for certain Ryanair securities limiting the ownership of their equity by a certain category of investors (e.g. ISIN IE00BYTBXV33). Dividend payments related to these securities will be paid net of Irish withholding tax. These securities cannot be held in an account exempt from Irish withholding tax. 

3. Equities – REITs overview

Property Income Distributions

a. Clearstream Banking does not provide a Tax Relief at Source service on property income dividends distributed by REITs. These distributions are subject to standard Irish withholding tax. Consequently, payments related to these events will be distributed net of Irish withholding tax.

b. Non-resident investors who suffer DWT and are resident in countries with which Ireland has a double taxation agreement (DTA) or treaty may be able to reclaim some of the DWT, if the relevant tax treaty permits.

c. Excluded Irish persons are entitled to an exemption from withholding tax. However, Clearstream does not provide this service.

Non-Property Income Distributions

a. Clearstream Banking does not provide a Tax Relief at Source service on non-property income dividends distributed by REITs. These distributions are subject to standard Irish withholding tax. Consequently, payments related to these events will be distributed net of Irish withholding tax.

b. Non-resident investors who suffer DWT and are resident in countries with which Ireland has a double taxation agreement (DTA) or treaty may be able to reclaim some of the DWT, if the relevant tax treaty permits.

c. Excluded Irish persons and qualifying non-resident persons are entitled to an exemption from withholding tax. However, Clearstream does not provide this service.

Capital gains tax

There is no capital gains tax withheld through Clearstream Banking on securities held in Clearstream Banking. Capital gains tax may however be payable on specific gains. Clearstream Banking does not assist in this regard. Please consult your tax advisor for further information.

Stamp Duty

For more information on Stamp Duties, please refer to Settlement services - Ireland - Equities and corporate bonds - Euroclear Bank, section “Irish stamp duty in Euroclear Bank”.

Deadlines

Relief at source deadlines

In order to benefit from tax relief at source on Irish dividend payments, Clearstream Banking clients will have to ensure to fulfill both below conditions within the deadlines specified below:

1. A segregated account is opened by Clearstream Banking clients in order to exclusively hold Irish equities distributing dividends that are eligible for a tax exemption at source (the “segregated account”), and
2. Relevant tax documentation is provided by Clearstream Banking clients to certify the account and prove the eligibility to the tax exemption before the transfer of those Irish equities to the segregated account. After the receipt and validation of this tax certification, the segregated account will be flagged as “exempt” in Clearstream Banking and all dividends from Irish domestic equities will be paid gross on this account.

Statutory deadline for reclaiming withholding tax

The statutory deadline for reclaiming withholding tax is four years after the end of the year in which the relevant income payment was made.

Clearstream Banking 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.

Notes on tax reclaims

Clients warrant the completeness and accuracy of the information they supply to Clearstream Banking.
It is the client's responsibility to determine any entitlement to a refund of tax withheld, to calculate the amount due and to correctly complete the required forms in due time. Clearstream Banking is under no obligation to carry out any investigation in respect of such information.
With respect to reclaims in general, clients are reminded that Clearstream Banking accepts no responsibility for their acceptance or non-acceptance by the authorities of the respective country.