Taxes Consolidation Act 1997 Schedule 24 paragraph 9DA

Unilateral relief (branch profits)

Paragraph 9DA provides for unilateral credit relief against Irish corporation tax where a company suffers foreign tax on profits earned through an overseas branch, even in the absence of a tax treaty with the territory concerned.

• An Irish-resident company trading through a foreign branch may claim a credit for the foreign tax paid on its branch profits against the corresponding Irish corporation tax, regardless of whether a tax treaty exists with that territory.
• The relief is calculated as though a tax treaty were in place, and it does not apply where an existing treaty already provides credit for the tax in question or where credit is available under paragraph 9D for foreign withholding tax.
• A company qualifies for the relief if it is resident in the State, or if it is resident for corporate tax purposes in another EU Member State and the relevant income forms part of the income of its Irish branch.
• The foreign taxes that qualify for credit are limited to those corresponding to corporation tax or capital gains tax, together with any foreign qualified domestic top-up tax properly attributable to the branch income on a just and reasonable basis.