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
| Corporate bonds | Holding restriction? | Withholding tax rate | Relief at | Quick | Standard |
No | 20% (a) | n/a | n/a | n/a |
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.
Government bonds | Holding restriction? | Withholding tax rate | Relief at | Quick | Standard |
No | 0% | n/a | n/a | n/a |
2. Equities - Overview
Equities (a) | Preliminary requirement for relief at source? | Withholding tax rate | Relief at | Quick | Standard |
Yes | 25% | ||||
Qualified Intermediaries | Yes | No | No | ||
Qualifying non-resident persons | Yes | No | Yes | ||
Excluded Irish persons | Yes | No | No | ||
Residents in Double Taxation Treaty countries (that are not qualifying non-resident persons) | No | No | Yes | ||
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:
Equities - REITs overview
REITs (a) | Preliminary requirement for relief at source? | Withholding tax rate | Relief at | Quick | Standard |
N/A | 25% | ||||
Qualified Intermediaries | No | No | No | ||
Qualifying non-resident persons | No | No | No (b) | ||
Excluded Irish persons | No (c) | No | No | ||
Residents in Double Taxation Treaty countries | No | No | Yes (b) | ||
a. These rules apply to the distributions from the property profits of the REIT i.e. property income dividends and distributions paid out of the proceeds of the disposal of a property used in the property rental business. For ordinary dividends related to the residual (non-property) business of the REIT, please refer to the Equities table above.
b. Non-resident investors who suffer DWT and who 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 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 customers will have to ensure to fulfill both below conditions within the deadlines specified below:
- A segregated account is opened by Clearstream Banking customers in order to exclusively hold Irish equities distributing dividends that are eligible for a tax exemption at source (the “segregated account”), and
- Relevant tax documentation is provided by Clearstream Banking customers 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
Customers warrant the completeness and accuracy of the information they supply to Clearstream Banking.
It is the customer'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, customers are reminded that Clearstream Banking accepts no responsibility for their acceptance or non-acceptance by the authorities of the respective country.