Taxes Consolidation Act 1997 section 40

Securities of International Bank for Reconstruction and Development

Section 40 provides that securities issued by the International Bank for Reconstruction and Development (the World Bank) are treated in the same way as certain Government securities, allowing interest to be paid without deduction of tax at source.

• Any stock or other security issued by the World Bank (International Bank for Reconstruction and Development) falls within the scope of this section.
• These securities are treated as if they were issued under the authority of the Minister for Finance, bringing them within the favourable regime set out in section 36.
• The practical effect is that interest on World Bank securities may be paid gross, i.e., without deduction of income tax at source.
• Although the interest is paid gross, it remains chargeable to Irish income tax under Case III of Schedule D, though this charge is removed in certain cases under section 49.