Taxes Consolidation Act 1997 section 739T

Deduction from consideration on the disposal of certain units

Section 739T requires a 20% withholding tax to be deducted by the purchaser when an IREF taxable event occurs to which the IREF itself is not a party, such as a direct sale or transfer of units between investors, where the consideration exceeds €500,000.

• Where units in an IREF are sold or transferred directly between parties (not involving the IREF), the person paying the consideration must deduct 20% withholding tax, provided the total consideration exceeds €500,000.
• The person who deducts the tax must file a return with Revenue within 30 days of the taxable event, giving details of the IREF, the unit holder, the consideration and the tax deducted.
• The withholding tax deducted is treated as a payment on account of the unit holder's income tax liability for the year of assessment, and may be reduced or repaid where a double taxation treaty applies.
• Any claim by the unit holder for repayment of excess withholding tax must be made through the unit holder's return of income under Part 41A.