Taxes Consolidation Act 1997 section 309

Companies not resident in the State

Section 309 deals with how capital allowances are allocated where a non-resident company is subject to both corporation tax and income tax on different sources of Irish income.

• A company not resident in the State may be within the charge to corporation tax on one source of income and income tax on another source.
• Capital allowances must be matched against the income that is chargeable to the same type of tax as the source to which those allowances relate.
• For example, allowances relating to a trade carried on through an Irish branch must be set against profits chargeable to corporation tax, not against income chargeable to income tax.
• The rule applies across the capital allowances code, including provisions for balancing allowances and charges, mining and petroleum activities, patent royalties, and related matters.