Taxes Consolidation Act 1997 section 153

Distributions to certain non-residents

Section 153 provides an exemption from Irish income tax for distributions made by Irish resident companies to certain non-resident persons, and limits the tax charge on other non-resident individuals to 25%.

• A "qualifying non-resident person" — whether an individual, a company, or a pension scheme — who is resident in an EU/EEA State or a country with which Ireland has a tax treaty, is exempt from Irish income tax on distributions received from Irish resident companies.
• A non-resident company qualifies if it is not controlled by Irish residents, is ultimately controlled by residents of an EU/EEA State or tax treaty country, or has shares (or whose parent company has shares) that are regularly traded on a recognised stock exchange in such a territory.
• The exemption does not apply to property income dividends paid by a Real Estate Investment Trust (REIT), and separate rules apply where the EU Parent-Subsidiaries Directive prohibits the imposition of withholding tax on distributions to an EU parent company.
• Where a non-resident individual does not qualify as a "qualifying non-resident person", the income tax charge on distributions from Irish companies is capped at 25%, making the Dividend Withholding Tax (DWT) deducted the final liability.