Dividend Withholding Tax

1. Self-Certification for Non-Resident Companies

Section 33, Finance Act 2010, removes the requirement for certain non-resident companies receiving dividends from Irish resident companies to provide a tax residence and/ or auditor's certificate, along with a signed non-resident declaration form, in order to obtain exemption from Dividend Withholding Tax (DWT) at source. Instead, a self-certification system will apply under which a qualifying non-resident company will provide a declaration to the dividend paying company or qualifying intermediary to claim exemption from DWT.

The Declaration will include:

• an undertaking from an authorised signatory that the named company is beneficially entitled to the distribution in respect of which the declaration is made,
• details of the tax residency of the named company and,
• an undertaking to provide any further supporting documentation relating to the residency or control of the company to Revenue upon request.

The declaration will be valid to the end of the 5th year after the year in which the declaration is signed. [Sections 172D, 172F and Schedule 2A of the Taxes Consolidation Act 1997 are amended to give effect to this change.] The required declaration form and explanatory notes (PDF, 53KB) are available on the Revenue website at: Taxes & Duties – Dividend Witholding Tax – Forms.

Please note that this revised form applies to qualifying non-resident companies only. There is no change to the arrangements for claiming exemption from DWT for non-resident individuals or non-resident groups of persons not being companies.

The new arrangements are effective from 3 April 2010. Declarations/certificates provided by qualifying non-resident companies before this date for the purposes of claiming exemption from DWT will remain valid until their current expiry date has passed.

2. Electronic Vouchers

Section 33 Finance Act 2010 also amends section 172I of the Taxes Consolidation Act 1997 to provide for the electronic transmission of dividend statements to all shareholders, who elect to receive vouchers in this format (currently transmission of electronic statements is allowed for payments to intermediaries only). A consequential amendment is also made to section 172J(4). This arrangement is also effective from 3 April 2010.

Queries in relation to these issues should be addressed to:

DWT Unit,
Collector-General's Division,
Revenue Commissioners,
Government Offices,
Nenagh,
Co. Tipperary.
Tel: +353-67-63400
Fax. +353-67-33822
E-mail: infodwt@revenue.ie

Source: Revenue Commissioners. www.revenue.ie. Copyright Acknowledged.