Ireland and the United States have entered into an agreement concerning the treatment of Common Contractual Funds (“CCF”) under the Ireland-United States Double Taxation Agreement.

According to the Revenue statement on the matter, the agreement was entered into at the request of Ireland “in order to clarify the transparent nature of the CCF and in order to preserve the entitlement to benefits under the Convention of Irish resident unit holders in a CCF.”

A CCF will not be regarded as a resident of Ireland for the purposes of Article 4 of the Ireland/US DTA. Accordingly, under the first sentence of Article 1 of the Protocol, a unit holder in a CCF will be entitled to benefits under the Convention, provided the unit holder is a resident of Ireland that satisfies the requirements of Article 23 (Limitation on Benefits). The agreement between the Competent Authorities is set out in full at 2.08 below.