United States-Ireland Tax Treaty

Ireland International Tax Compliance Rules

Quick Summary.  Ireland is a parliamentary democracy based on the 1937 Constitution of Ireland.  The Irish parliament is divided into two houses, the house of representatives (Dáil Éireann) and a Senate (Seanad Éireann).

Effective 2019, Ireland has ratified the OECD’s Multilateral Instrument.  In addition, effective 2019, Ireland has implemented controlled foreign corporation (CFC) rules effectuating provisions set out in the European Union’s (EU’s) Anti-Tax Avoidance Directive (ATAD).  They have Also implemented exit tax rules.

Ireland taxes resident corporations on worldwide profits; non-resident companies are subject to tax on certain Irish-source income.

U.S.-Ireland Tax Treaty

Resident/domiciliary individuals are taxed on worldwide income; whereas, residents not domiciled in Areas are taxed on certain Irish-source income and foreign income remitted into Ireland.  Non-residents are generally subject to tax only on Irish-source income.

Ireland Tax Treaty.

•  Convention Between the Government of Ireland for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital Gains, signed at Dublin on July 28, 1997
• Technical Explanation of the Convention between the United States and Ireland and the Protocol signed on July 28, 1997
• CONVENTION AMENDING THE CONVENTION BETWEEN THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE GOVERNMENT OF IRELAND FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME AND CAPITAL GAINS SIGNED AT DUBLIN ON 28 JULY, 1997

Currency.  Euro (EUR)

Common Legal Entities.  Public and private limited liability company, partnership, sole proprietorship, and branches.

Tax Authority.  Office of the Revenue Commissioners

Tax Treaties.  Ireland is party to the OECD’s MLI.  

Corporate Income Tax Rate.  12.5% – 25%.

Individual Tax Rate. Up to 40%.

Corporate Capital Gains Tax Rate.  33% -44%.

Individual Capital Gains Tax Rate. 33% -44%.

Residence.  Individual residence is established where an individual spends more than 183 days during the tax year in Ireland or has 280 days of combined presence over the tax year and preceding year.

Withholding Tax.

            Dividends.  0% / 25%

            Interest.  0% / 20% / 33%

            Royalties.  0% / 20%

Transfer Pricing.  Ireland employs the arm’s length principle.  

CFC Rules.  CFC rules are applicable as of January 1, 2019.

Hybrid Treatment.  Effective January 1, 2020, Anti hybrid rules in line with ATAD 2 are applicable.   

Participation Exemption.  Yes.

Inheritance/estate tax. No.

Tax Treaty Network – International Tax Attorneys

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