Revenue Note for Guidance

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Revenue Note for Guidance

891A Returns of interest paid to non-residents

Summary

This section links with the exemption from withholding tax on certain interest payments provided for in section 246. The exemption applies to certain interest payments to non-residents and this section requires the following details to be provided automatically to the Revenue Commissioners by the person paying the interest —

  • the name and address of the recipient,
  • the amount of interest paid in the chargeable period, and
  • the country of residence of the recipient.

This information must be returned by the payer on or before the normal date for the submission of returns for the chargeable period in which the payment takes place.

Details

Definitions

(1) “chargeable period” is defined in section 321(2) and effectively means —

  1. for a company, an accounting period, and
  2. for any other person, a year of assessment.

“relevant interest” refers to interest exempted from withholding tax by virtue of section 246(3)(h) only.

“relevant person” means a company or a collective investment undertaking.

“specified return date for the chargeable period” has the same meaning as in section 894(1) and refers to the appropriate date for the submission of returns in respect of that chargeable period.

Return

(2)(a) Any relevant person who makes a payment of interest (relevant interest) which has been exempted from withholding tax by virtue of section 246(3)(h) must submit a return of information to the Revenue Commissioners. This return must be made on or before the specified return date for the chargeable period and must contain —

  • the name and address of the recipient
  • the amount of interest paid to that person in that chargeable period, and
  • the country of residence of the recipient.

(2)(b) The provisions of section 891 are disapplied in relation to these payments. Section 891 itself imposes an obligation to return certain information regarding interest paid without deduction of withholding tax. It may not however apply to every circumstance in which the exemption provided for in section 246(3)(h) applies. Given that this section imposes the obligation to make the return of information in all such circumstances, there is no necessity for section 891 to apply.

(2)(c) The penalty provisions in sections 1052 and 1054 apply to each and every failure to submit the information return referred to in subsection (2)(a). Section 1052 imposes financial penalties for a failure to make an appropriate return and provides for a means of recovery of such penalties. Section 1054 provides for additional penalties where the failure to comply with such obligations continues.

Relevant Date: Finance Act 2019