Dividend withholding tax
If you are a company resident in the Republic of Ireland, you must deduct dividend withholding tax (DWT) at the standard rate from dividend payments and other profit distributions (s 172B).
The tax need not be deducted from distributions made to:
(a) an Irish resident company, a pension scheme, an employee share ownership trust, a collective investment undertaking, or a charity (s 172C),
(b) a non-resident who is resident in a tax treaty country, an EU resident, or a quoted company (s 172D),
(c) a qualifying intermediary, provided the ultimate beneficiary is non-liable (s 172E).
The withheld tax may be credited against the dividend recipient’s tax liability for the tax year in which the dividend is received (s 172J).
Annual payments
An annual payment (for example, a covenanted payment) is a payment that is pure income profit in the hands of the recipient. If you make an annual payment out of taxed income, you (not the recipient) are chargeable to tax on the payment and you are entitled to retain tax at the standard rate from the amount of the payment (s 237).
If you make an annual payment out of income not charged to tax, the recipient (not you) is chargeable to tax on the payment, and you must retain tax at the standard rate from the amount of the payment (s 238).
Deposit interest retention tax
Financial institutions must deduct deposit interest retention tax (DIRT) at the following percentage rates from interest payable on deposits:
(a) 27% from interest that is payable annually or more frequently, and
(b) 30% from interest payable less frequently than annually (s 256).
DIRT deducted from general deposit account interest satisfies your income tax liability but must be included in your return of income (s 261).
DIRT does not apply to accounts held by pension funds (s 265) and charities (s 266), provided they have completed the appropriate declaration.
If you are aged 65 or over, and your income is below €18,000 (individual) or €36,000 (married couple), you may obtain a refund of DIRT (s 267).
Professional services withholding tax
If you are an accountable person (a government department or State-funded body), you must deduct professional services withholding tax (PSWT) at the standard rate from payments made for professional services (s 520) of:
(a) doctors, dentists, pharmacists, opticians and veterinary surgeons,
(b) architects, engineers, and quantity surveyors,
(c) accountants, auditors, and financial, economic, marketing, or business consultants,
(d) solicitors, barristers and other legal agents,
(e) geologists,
(f) providers of training services on behalf of FÁS.
Relevant contracts tax
If you are a main contractor, you must deduct relevant contracts withholding tax (RCWT) at 35% from payments made by you an unauthorised subcontractor who has been engaged to carry out a relevant contract, i.e., construction operations, forestry operations, or meat processing operations on behalf of the main contractor (s 530, 531).