Ireland Courts Service Clarifies Deductibility of Nonresident Royalty Withholding Tax Incurred by Companies

The Irish Courts Service May 15 posted online High Court Decision No. [2026] IEHC 305, clarifying the deductibility of nonresident royalty withholding tax incurred by companies. The taxpayer, an Irish resident company engaged in intellectual property licensing, incurred withholding tax on royalties received from nonresident group entities and sought to deduct the withholding tax as a trading expense rather than claiming tax credit relief. The Tax Appeals Commission allowed the taxpayer to deduct the withholding tax, holding that it was wholly and exclusively incurred for trade. On appeal, the High Court found that: 1) the statutory double taxation regime provides ...