Taxes Consolidation Act 1997 section 111H

Partially-owned parent entity in the State

Section 111H requires Irish-located partially-owned parent entities to pay IIR top-up tax where they hold an interest in a low-taxed constituent entity, or where they are themselves low-taxed, subject to an exception where a higher-level partially-owned parent entity is already subject to a qualified IIR.

• A POPE is a constituent entity that owns, directly or indirectly, an ownership interest in another constituent entity in the same MNE group, where the right to more than 20 per cent of the POPE's profits is held by persons that are not part of the MNE group.
• A POPE located in Ireland that owns, directly or indirectly, an interest in a low-taxed constituent entity during a fiscal year must pay IIR top-up tax on that entity's profits.
• If the POPE is itself low-taxed in a fiscal year, it must pay IIR top-up tax on its own profits.
• These obligations do not apply where the POPE's ownership interests are wholly owned, directly or indirectly, by another POPE that is subject to a qualified IIR for that fiscal year.
• The provision ensures that top-up tax is collected at the appropriate level in multi-tiered ownership structures, avoiding duplication where a higher-level entity already applies a qualified IIR.

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