Taxes Consolidation Act 1997 section 24

Companies resident in the State: income tax on payments made or received

Section 24 deals with the income tax treatment of certain annual payments made and received by companies resident in the State, including the obligation to deduct income tax and the ability to credit tax deducted against corporation tax.

• When a resident company makes annual payments (such as annuities), it must deduct income tax at the standard rate and account for it to Revenue — this obligation applies even if the recipient company is not chargeable to income tax on the payment.
• Where a resident company receives a payment from which income tax has been deducted, the tax borne is set off against the company's corporation tax liability for the accounting period in which the payment is taken into account.
• A company cannot claim a repayment of income tax deducted from payments it has received until its corporation tax assessment for the relevant accounting period has been finally determined and a repayment is shown to be due.
• The rules apply equally to payments received by another person on behalf of or in trust for the company, but do not apply to payments the company itself receives as agent or trustee for someone else.