Taxes Consolidation Act 1997 Schedule 24 paragraph 9DC

Unilateral relief (leasing income)

Paragraph 9DC provides unilateral credit relief for withholding tax suffered on leasing income arising in countries with which Ireland does not have a tax treaty.

• A company can claim unilateral relief for withholding tax (relevant foreign tax) suffered on leasing income that forms part of its trading income, where the tax arises in a non-treaty country.
• The relief reduces the corporation tax payable by up to 87.5 per cent of the relevant foreign tax borne, subject to a cap equal to the corporation tax attributable to the relevant leasing income.
• Corporation tax attributable to relevant leasing income is determined by apportioning total trading income in the ratio of relevant leasing income to total trade receipts in the accounting period.
• Where foreign tax or relevant foreign tax on a particular stream of leasing income cannot be fully relieved in the current period, the unrelieved balance may be carried forward to the next accounting period for relief against the same stream of leasing income.