Capital gains tax: double taxation relief

Summary

This section gives the Government authority, on the same lines as for income tax, to enter into arrangements with the governments of other territories to afford relief from double taxation in respect of capital gains tax and provides the mechanism for giving relief. It also deals with foreign tax paid in a territory with which Ireland does not have a double taxation treaty.

Details

(1) Section 826 and Schedule 24 are adapted for the purposes of capital gains tax and, by substituting in that section references to capital gains and capital gains tax, respectively, for references to income and income tax, enables the Government to enter into the necessary arrangements with the Governments of other countries for the avoidance of double taxation of capital gains.

(2) Where relief for capital gains tax borne in another territory may be due, that relief can be set off only against capital gains tax chargeable in the State. If the capital gains tax suffered abroad exceeds the Irish capital gains tax chargeable, the excess is not eligible for set off against Irish tax on income.

(3) The disclosure of information to the Revenue authorities of another territory is authorised for the purposes of relief from double taxation of capital gains.

(4) Foreign capital gains tax which cannot be taken into account for credit purposes under a double taxation agreement is treated as an allowable deduction in computing chargeable gains on the disposal of the asset in question.

Relevant Date: Finance Act 2019