Taxes Consolidation Act 1997 section 267L

Application of this Chapter to certain payments made to companies in Switzerland

Section 267L extends the benefits of the EU Interest and Royalties Directive to payments of interest or royalties made to certain companies resident in Switzerland.

• Payments of interest or royalties to Swiss-resident companies (or Swiss branches of EU companies) that are the beneficial owners may be made without deduction of Irish tax, mirroring the relief available under the EU Interest and Royalties Directive.
• The recipient company must be tax resident in Switzerland, must not be treated under any Swiss tax treaty as resident outside the EU or Switzerland, and must be a type of company specified in the 2004 EU–Switzerland agreement.
• Sections 267G to 267I (which implement the Directive) apply to these payments as if references to EU Member States, companies of Member States, and taxes covered also include Switzerland, Swiss-resident companies, and corresponding Swiss taxes.
• The anti-avoidance rule in section 267K also applies, meaning relief is denied unless the payment is a genuine commercial transaction and not part of a tax avoidance arrangement.