Taxes Consolidation Act 1997 section 831A

Treatment of distributions to certain parent companies

Section 831A extends the benefits of the EU Parent/Subsidiaries Directive to companies resident in Switzerland, so that dividend withholding tax need not be deducted from distributions paid by Irish subsidiary companies to qualifying Swiss parent companies.

• As part of the 2004 agreement between the EU and Switzerland on the EU Savings Directive, it was agreed that Swiss companies would receive the benefits of the EU Parent/Subsidiaries Directive.
• A qualifying Swiss parent company is one that is of a type specified in the agreement, is resident and subject to tax in Switzerland, and controls at least 25 per cent of the voting power in its Irish subsidiary.
• Dividend withholding tax under Chapter 8A of Part 6 (other than section 172K) does not apply to distributions made by an Irish-resident subsidiary to its qualifying Swiss parent company.
• The exemption applies to distributions made on or after 1 July 2005, the date on which the EU Savings Directive came into effect.