Taxes Consolidation Act 1997 section 39

Securities of certain European bodies

Section 39 provides that securities issued in the State by certain European institutions are treated as government securities, allowing interest to be paid without deduction of tax at source.

• Securities issued in the State by the European Community (now the European Union), the European Coal and Steel Community, the European Atomic Energy Community or the European Investment Bank are covered by this section.
• These securities are treated as if they were issued under the authority of the Minister for Finance, bringing them within the scope of section 36.
• The effect is that interest on these securities may be paid gross, that is, without deduction of income tax at source.
• Although the interest is paid gross, it remains chargeable to tax under Case III of Schedule D, subject to certain exemptions available under sections 48 and 49.