Taxes Consolidation Act 1997 section 246A

Interest in respect of wholesale debt instruments

Section 246A sets out the rules governing the tax treatment of interest paid on wholesale debt instruments, namely certificates of deposit and commercial paper, including exemptions from withholding tax and DIRT depending on residency, clearing system participation, and instrument denomination.

• Interest on wholesale debt instruments (certificates of deposit and commercial paper) held in a recognised clearing system and of an approved denomination (minimum €500,000 or equivalent) may be paid free of withholding tax and DIRT, regardless of whether the issuer or paying agent is resident or non-resident.
• Where the issuer or paying agent is resident in Ireland, interest may also be paid gross if the recipient is an Irish resident who has provided their tax reference number, or if the recipient is non-resident and has made a formal declaration of non-residence.
• Where interest is paid gross to Irish residents or through a recognised clearing system by a resident issuer or paying agent, the payer must report the recipient's tax reference number and interest details to Revenue under section 891.
• Non-residence declarations must be retained for at least six years from the date they are made, or three years after the last related interest payment, whichever period is longer, and must be made available to Revenue on request.