TaxSource Total

Here you can access summary of the key current tax developments in Ireland, the UK and internationally as reported by Chartered Accountants Ireland

The report of key tax developments are displayed per year, per month, by Ireland, the UK or International and by report title

Revised tax treatment of royalty income

With effect from 1 January 2016, Article 12 of the Double Tax Treaty between Ireland and Estonia is revised to state that royalties are taxed only in the state of residence and that the definition of royalties excludes payments for the use of, or right to use, industrial, commercial or scientific equipment.

The reason for the amendment is detailed in Revenue eBrief 47/16 (full details here) and arises because Ireland’s Double Tax Treaty with Estonia provides that the tax treatment of royalty income can be revised if more favourable terms are subsequently agreed by Estonia and another OECD country. Estonia has recently agreed more favourable terms with Switzerland.