Taxes Consolidation Act 1997 section 267H

Application (Chapter 6)

Section 267H sets out the conditions under which cross-border payments of interest or royalties between associated companies qualify for exemption from Irish withholding tax under this Chapter.

• The exemption applies to interest or royalty payments made by an Irish-resident company, or by an Irish branch of a foreign company where the payment is tax-deductible in Ireland.
• The recipient must be a company resident in another EU member state (or a permanent establishment located in another EU member state) that is the beneficial owner of the interest or royalties, and must be a 25% associate of the paying company.
• The exemption does not apply to interest on debt where there is no provision for repayment of the principal, or where repayment is due more than 50 years after the debt was created.
• Royalties are only exempt to the extent they do not exceed what independent parties would have agreed at arm's length.