Taxes Consolidation Act 1997 Schedule 24 paragraph 9A

Unilateral relief

Paragraph 9A provides for unilateral credit relief against Irish corporation tax on dividend income received from a subsidiary in a country with which Ireland does not have a tax treaty.

• A company resident in the State (or an EU/EEA-resident company whose Irish branch receives the dividend) may claim a credit for foreign tax paid on a relevant dividend from a 5% subsidiary in a non-treaty country, calculated as if a tax treaty were in place.
• The foreign tax eligible for credit includes withholding tax on the dividend, underlying tax on the subsidiary's profits attributable to the dividend, and any foreign qualified domestic top-up tax (QDTT) properly attributable to the dividend on a just and reasonable basis.
• Credit is not available for tax paid in a treaty country (unless the treaty itself does not provide credit), for tax already taken into account under paragraph 9D, or for tax eligible for credit under section 831 (EU Parent/Subsidiaries Directive).
• Only foreign taxes corresponding to Irish corporation tax or capital gains tax qualify, and for the purposes of this paragraph foreign QDTT also qualifies; where a refund or payment is made abroad by reference to the foreign tax, the credit must be reduced accordingly.