Taxes Consolidation Act 1997 section 739O

Tax arising on IREF taxable event

Section 739O sets out the tax treatment of unit holders in an Irish real estate fund (IREF) in respect of an IREF taxable event and specifies the rate of withholding tax to be applied.

• A holder of excessive rights is a person (or connected persons) beneficially entitled to at least 10% of the units in an IREF; for double taxation treaty purposes, the taxable amount for such a holder is treated as income from immovable property, while for other unit holders it is treated as a dividend.
• The IREF taxable amount is chargeable to income tax under Schedule D Case V for the year of assessment in which the taxable event occurs, and no loss, deficit, expense or allowance may be set against it.
• The income is taxed at a flat rate of 20% and is excluded from the computation of the unit holder's total income for Income Tax Act purposes.
• The age exemption under section 188 and the personal allowances and reliefs in Part 2 of the Table to section 458 do not apply to income charged under this provision.